Bernard Durkan (Kildare North, Fine Gael)
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174. To ask the Minister for Agriculture, Food and the Marine the extent to which the beef industry is likely to be safeguarded in the future in view of the likelihood of substantial expansion in the dairy sector; and if he will make a statement on the matter. [48767/13]

Simon Coveney (Cork South Central, Fine Gael)
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Given the high export dependence of the beef and dairy sectors, their future prospects will be determined in the first instance by demand and supply developments in the marketplace. The dairy industry in Ireland has been constrained by the milk quota system which was introduced in 1984. A Teagasc analysis of the post-quota situation anticipates an extra yield per cow and an increase in dairy cow numbers with most of the surplus dairy calves produced going into the beef production chain. The Draft Environmental Analysis of Food Harvest 2020 published by my Department in September 2013 envisages that, even allowing for some substitution of beef cows for dairy cows, the strength of the suckler cow herd will remain relatively stable with numbers exceeding the one million head mark throughout the forecast period.

A Teagasc Sectoral Road Map for suckler beef forecasts that a 40% increase in the output value of the sector by 2020 should be achievable with increased efficiency in the suckler herd and an increase in the number of dairy beef calves. In particular, it points to a number of actions that will enhance the competitiveness of suckler beef farms:

- Greater adoption of best grazing management practices at farm level;

- An increased rate of genetic progress in the national herd;

- Reduced calving interval and more compact seasonal spring calving pattern; &

- Greater output of liveweight per hectare combined with reduced costs per livewight gain.

My Department is working, including through the relevant State agencies, to improve efficiency and profitability in the beef sector. Though its research and advisory services and the ‘BETTER’ Beef Farm Programme, Teagasc is working to communicate these messages at primary producer level. In addition, the sectoral supports delivered by my Department, including the Beef Technology Adoption Programme, are designed to complement these activities by incentivising farmers to adopt the latest technologies and best practices that will improve the physical and financial performance of their beef enterprises.

I am confident that the package of budget measures that I announced on 15 October will lay a solid foundation for securing the future of the beef sector following the abolition of the quota system. The €40m funding allocation available for 2014 is comprised of €23m for a new Beef Genomic Scheme, the operational details of which have yet to be finalised; €10m for the Beef Data Programme; €5m for the continuation of the Beef Technology Adoption Programme; plus €2m to meet residual payments under the Suckler Cow Welfare Scheme.