David Stanton (Cork East, Fine Gael)
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Question 39: To ask the Minister for Agriculture, Fisheries and Food his views on cattle prices at present; and if he will make a statement on the matter. [16887/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Product prices are a function of market forces and beef prices to date in 2010 are down over 2% on the corresponding period in 2009. Factors governing beef returns at present include, reduced consumer demand, stronger sales of cheaper cuts, currency movements, supply availability and the level of live exports. While I have no function in the determination of prices, I am, nonetheless, mindful of the difficulties that falling prices pose for producers. In this context, I have advanced various initiatives to support the sector.

My Department, in conjunction with Teagasc and Bord Bia, is driving the development of a number of non-price strategies to assist the sector in responding to market conditions. Among these are the breed improvement programmes, being progressed by ICBF, and the Animal Welfare Scheme for Suckler Herds. The objective of these policies is to utilise scientific and genetic data to further improve the quality of the cattle herd and, ultimately, returns to producers. Likewise, the Beef Quality Assurance Scheme administered by Bord Bia is crucial in reassuring consumers that Irish beef meets the highest standards of quality, safety and traceability. The QA standard is an important selling point in many of our markets and I note that over 30,000 certified farmers are now participating in this scheme with numbers continuing to grow strongly.

In conjunction with these initiatives, an enhanced Irish Beef Promotion Strategy for the period 2008 – 2013 is currently being implemented by Bord Bia. This strategy is based on differentiating and repositioning Irish beef in a number of key international markets, particularly the high-value EU markets which account for some 99% of Irish beef exports. My Department has also funded a beef processing development programme through Enterprise Ireland aimed at increasing efficiency and value added at processor level.