Séamus Kirk (Louth, Fianna Fail)
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Question 491: To ask the Minister for Agriculture, Food and the Marine his plans to reverse the decreasing number of suckler cows in the national herd; and if he will make a statement on the matter. [31320/11]

Simon Coveney (Cork South Central, Fine Gael)
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The size of the overall national herd and its various components is primarily a function of market forces; the allocation of economic resources is underpinned by the relationship between supply and demand with price and, ultimately, profitability reflecting the interaction of these factors. The operation of these dynamics is clearly illustrated in the current market situation at domestic level.

The latest analysis of the national and international beef markets undertaken by Bord Bia indicates that Irish beef production in 2011 is expected to fall by about 8% on 2010 levels because of the strong live export trade and lower calf registrations in recent years. To date this year, cattle supplies at meat plants are over 4% or some 54,000 head lower than in 2010. As a result, average carcase prices for cattle to date this year are between 15% and 18% higher than for last year depending on the category and quality of the animal.

It must be acknowledged that the Government has already channelled significant funding to the suckler cow sector. Payments to farmers by my Department under the Suckler Cow Welfare Scheme amounted to €113.5m since its introduction. Approximately €20.5m has been paid through the scheme in respect of animals born in 2010 and, depending on the number of successful applicants, this figure could potentially reach €25m by the end of the year.

Furthermore, my Department and its agencies engage in a range of activities that provide a sound framework for the future development of the beef sector. These include the advisory and research output of Teagasc, Bord Bia's Quality Assurance Scheme and its promotional work in expanding beef sales at home and abroad together with the Beef and Sheepmeat Capital Investment Fund for the processing industry. My Department also makes a significant contribution to the Irish Cattle Breeding Federation which plays a critical role in improving genetic quality in the suckler herd. In addition, my Department is continuing its efforts to facilitate market access for Irish beef in a range of third countries that can offer alternative outlets to exporters along with real potential for expansion. All these investments and services serve to underpin the suckler cow herd.

While the increased output value of stock is welcome news for producers, I recognise that direct supports under the Common Agricultural Policy (CAP) are crucial to the future of the livestock sector and I have repeatedly stated my commitment to protecting the level of supports available to farmers under the CAP post-2013 regime. In this regard, I will use my best endeavours to shield and defend Irish agriculture generally, including suckler cow production, in the forthcoming negotiations on the CAP reform proposals.