Michael Creed (Cork North West, Fine Gael)
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To ask the Minister for Agriculture, Food and the Marine his views on the current sale of the beef industry here; the analysis that his Department has carried out on viability at farm gate level for suckler farmers including any analysis done on the per annum cost involved of keeping suckler cows; the way he proposes to sustain suckler cow numbers; and if he will make a statement on the matter. [14172/13]

Simon Coveney (Cork South Central, Fine Gael)
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The situation in the Irish beef sector is encouraging. Prices for cattle have been increasing recently, with a base payment of €4.35 per kg being quoted last week by factories and Bord Bia quality assured cattle also finding a ready market at present.

On the export front, there is strong demand from customers in our main markets (UK, France, Germany, Italy, Spain etc.) which is underpinning the current high beef prices to Irish farmers. In 2012, beef exports amounted to €1.9 billion, an increase of 2% over the previous year.

The long term sustainability of the Suckler herd will depend on market prices for beef. The current strong prices for both store cattle and finished animals will help increase profitability in 2013 for Suckler cow farmers. In Europe beef supplies remain tight, with beef production down 2.7% in 2012 and due to contract by a further 0.5% in 2013. I am confident that, with these high prices, the viability of the National suckler herd is secure.

With regard to the viability at farm gate level for suckler farmers Teagasc undertakes income analysis at farm level and publishes the results under their National Farm Survey (NSF) series. In 2011 the average direct cost of production per hectare for Single Suckling enterprises ranged from €350 per hectare on those farms with the lowest average gross margin to €463 per hectare on the most profitable farms.

There was considerably more variability in the average gross output between the least profitable and most profitable farms. The most profitable third of Single Suckling farms earned an average gross output of €1,013 per hectare compared with an average gross output of €451 per hectare on the least profitable one third of Single Suckling enterprises. This variability in average gross output is in large part due to the higher average stocking on the more profitable farms. These farms had an average stocking rate of 1.57 livestock units (LU) per hectare compared with only 1.03 LU per hectare for those farms with the lowest profitability.

Notwithstanding the ongoing consolidation of the public finances my Department and the agencies under its remit have continued to provide an array of financial and infrastructural supports to underpin production in this sector. These include initiatives such as the Beef Technology Adoption Programme (BTAP), which is designed to equip beef farmers with the knowledge to improve efficiency at farm level. Some €4.5 million was paid in 2012 to 4,800 farmers under the programme.

Other supports include the establishment of the Beef Data Programme for which €10 million has been allocated in 2013. The new programme will assist farmers in improving the genetic quality of Irish cattle and will maintain the data flow into ICBF in order to build further knowledge and more rapid progress in breeding and ultimately in profitability for farmers. In addition my Department continues to support the work of ICBF in improving genetic quality in the beef herd. On the advisory side Teagasc provides a best practice model for suckler farmers with the expanded BETTER Beef Farm Programme.

My Department and its agencies will continue to make every effort to assist farmers, including suckler farmers, to improve their farming and income situation in 2013.