Brian Hayes (Dublin South West, Fine Gael)
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Question 41: To ask the Minister for Agriculture, Fisheries and Food if he will comment on the decline in beef calf numbers; and if he will make a statement on the matter. [22048/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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My Department publishes statistics each year on the national cattle population in the annual AIM Bovine Statistics report. The report for 2009 has recently been published and contains detailed information on many aspects of the beef and dairy herd. The total number of calf births in the country has been relatively stable over the last number of years, at just over 2 million calves each year, indicating a relative stability in the number of calves born annually. In 2009 there was a drop in the number of beef calves born when compared to 2008. However, this was largely compensated for by an increase in the proportion of dairy calves born, and is as a result of dairy farmers using more dairy bulls in their herds, to breed more replacement heifers for use in the dairy herd in anticipation of milk quotas being abolished.

The global economic downturn has meant that the beef sector, like other sectors, is at present operating in a challenging trading environment. Exchange rate developments have also been significant, particularly in the UK, our largest single market. I am committed to working with the beef sector to respond to the evolving challenges and to providing a sound framework for the development of the industry. To this end, a number of policy initiatives have, over recent years, been developed or enhanced. These include, the Suckler Cow Scheme, Bord Bia's promotional work and its Quality Assurance Scheme, Breed Improvement Programmes and the Beef and Sheepmeat Capital Investment Scheme.

At farm level, my Department has made direct payments of some €33 million to beef farmers in 2009 through the Suckler Cow Welfare Scheme. On breed improvement my Department, together with Teagasc and the Irish Cattle Breeding Federation, are collaborating on a number of initiatives. Ongoing research and development in areas as diverse as grassland management and utilisation, animal breeding, animal health and feeding and cost control remain essential if we are to develop new and better animal production practices. Only in this way can we expect to increase returns for producers and assist the sector in continuing to supply high quality meat into ever more competitive markets. Furthermore, my Department will be completing its investment of more than €1 billion in farm waste infrastructure on Irish farms in 2011, and of course many of the 34,000 applicants receiving assistance under this scheme are beef farmers.

At processing level, the Capital Investment Scheme for the beef and sheepmeat processing sectors will provide some €69 million in grant aid, to assist the structural changes necessary in primary processing and in supporting the expansion of added value processing. The projects it is expected to underpin will make an important contribution to supporting incomes, sales, exports and employment.

I should also mention the ongoing marketing and promotion of Irish produce abroad. Our marketing efforts in this area are based on the overriding principles of differentiating and repositioning Irish beef in a variety of international settings. The good work being done by Bord Bia continues to focus on the key characteristics of Irish beef, particularly with regard to traceability and quality assurance. Currently over 99% of our exports go to the high value EU markets. This compares to some 50% a decade ago. On the issue of beef quality generally, I believe that the new Quality Payment System introduced last December will contribute significantly to an overall improvement in the quality of carcases produced here, as well as providing more animals for the high-priced EU markets, and underpinning Bord Bia's marketing and promotional strategies.

Finally, I would mention the 2020 Committee, which I recently established. This includes senior and respected figures from a range of stakeholders in the agri food sector. The group's remit is to prepare a strategy for the agri-food and fisheries sector for the coming decade. This process is well advanced and I believe that the output from this exercise will be important in setting a clear path forward for the beef sector. These initiatives complement the actions being undertaken by Teagasc, and other State Agencies, and together are important in underpinning the production, quality and marketing of Irish beef and the overall viability of the sector.