Michael Healy-Rae (Kerry South, Independent)
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Question 529: To ask the Minister for Agriculture, Food and the Marine his plans to make the Irish beef industry more sustainable and viable and not, like the Teagasc report stated, dependent on subsidies. [35823/11]

Simon Coveney (Cork South Central, Fine Gael)
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The results of the 2010 National Farm Survey published by Teagasc in July 2011 highlight the dependence of farm families, especially beef farmers, on income supports and reinforce the need to ensure that efficient producers are making viable profit levels from the marketplace. Reducing producer dependence on direct payment receipts will mean increasing their output efficiency and securing better returns from the marketplace for farmers and other industry stakeholders. This in turn entails meeting the exacting specifications of EU markets which account for some 98% of our beef exports. My beef policy strategy is geared towards maintaining and expanding the position of Irish beef products in the high-value segments of those markets.

In this context, the Food Harvest 2020 report published by my Department in July 2010 provides a blueprint for the future development of the entire agri-food sector, including the beef industry. The report acknowledges that there are significant challenges in relation to farm-level profitability in the beef sector and urges the adoption of new smart approaches throughout the supply chain to improve product quality and thereby grow output value.

Maximising beef output potential from the national herd is contingent on a number of factors, not least the price of beef on EU and international markets. In light of current and future market developments, it is essential that a co-ordinated approach is taken by stakeholders to improve efficiency at farm and processing level, to breed better animals, to maintain high standards of food quality and safety and to realise the market potential of Ireland's unique natural advantages. Central to this approach will be the role played by an increasing number of efficient, market-oriented beef producers.

Inside the farmgate, there is enormous scope to increase profitability through increased stocking rates, animal performance, better breeding and better grass utilisation. Teagasc initiatives such as the BETTER Farm Beef Programme are designed to target these performance indicators and to demonstrate that significant profit and productivity gains can result from the adoption of best practice at farm level. Moreover, increased product differentiation, based on the carbon efficiency of our predominantly grass-fed beef production system, can build on the success of current Bord Bia marketing strategies.

Even at this early stage of the implementation of the 2020 strategy, I can cite tangible progress in the areas of innovation and collaboration. Bord Bia, for example, has secured accreditation for its beef carbon footprint model. This is now part of the Beef and Lamb Quality Assurance Scheme making it the first such scheme to include environmental criteria. Plans are in train to extend this model to other products and to include additional environmental benchmarks on water and biodiversity. I see this as an important practical step towards the goal of creating an umbrella Brand Ireland identity as recommended in the 2020 strategy.

On the production side, Teagasc is working with the processing industry on research projects investigating dairy beef production and optimal bull beef production systems. Equally important is the substantial financial contribution provided by my Department to the Irish Cattle Breeding Federation in support of its efforts to improve breed quality.

While all these initiatives serve to improve the competitive position of Irish agriculture, I appreciate that direct supports under the Common Agricultural Policy (CAP) will still remain important to the future development 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 shall resolutely defend the funding supports available to Irish agriculture, including livestock production, in the forthcoming negotiations on the CAP reform package.