Martin Ferris (Kerry North-West Limerick, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

31. To ask the Minister for Agriculture, Food and the Marine if his attention has been drawn to the current reduction in the number of suckler cows and the 7.5% reduction in calves registered, down by 65,000, compared to 2012 levels; and his views that the annual replacement rate needed to maintain the national suckler herd will be achieved. [53110/13]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am fully aware of the issues facing beef producers at present, and despite the budgetary constraints in which I and other Ministers must operate, I recently announced a package of Budget measures designed to assist in improving the long-term profitability of a vulnerable sector that is particularly reliant on direct payments. While suckler cow numbers have remained relatively stable since payments were decoupled from production in January 2005, my Department monitors the composition and strength of the national herd on an ongoing basis. Calf registrations are subject to cyclical fluctuations as a contracting suckler herd causes an upturn in confidence, carcass values and margins encouraging renewed investment and restocking by producers.

Challenging production conditions over the last two years undoubtedly impacted on the size of the beef cow herd and this may result in a diminution in overall suckler cow numbers. The data referred to by the Deputy covers the first 9 months of the year but it will not be possible to quantify the full extent of any reduction until the publication of data on the final outturn for the year. The annual replacement rate depends on the number of heifers calving each year and this data too, along with underlying trends, will be considered by my Department after full year data becomes available.

As evidence of my commitment to the future of beef production, I can point to a number of targeted structural supports that I have put in place to enable the industry to meet future market requirements and the targets set out in the Food Harvest 2020 strategy. In particular, the Beef Genomics Scheme (BGS), which is specifically aimed at suckler farmers, will initiate the process of building a genetic database for the beef sector that will position Ireland as a global leader in beef genetics and ultimately lead to a more efficient and profitable farm sector.

With a total fund of €23 million, the BGS will provide participants with a payment of €40 per calf subject to an overall scheme limit. I have already indicated that in order to be eligible for entry into the BGS, a farmer must also join the Beef Data Programme (BDP) and I expect to announce full operational details of the new scheme early in 2014.

In addition to the BGS, a further €10 million in funding will be disbursed under the Beef Data Programme (BDP) in 2014. The objectives of the BDP are to improve the genetic quality of the national suckler herd through the collection of essential breeding and production information and to stimulate improvements in the competitiveness and output quality of the Irish beef industry. The Programme, which attracted some 34,000 application in 2013, assists farmers to improve the quality of their livestock by maintaining crucial data flows to ICBF that in turn will generate further advances in cattle breeding at a national level. Farmers in the BDP will qualify for a further €20 per calf up to a maximum of 20 calves. Taken in conjunction with the BGS, suckler farmers will receive a payment of up to €60 per calf in 2014. A payment model based on calves rather than cows sends a strong signal to the sector that supports are aimed at rewarding farmer efficiency and improved technical performance.

In addition to the BGS and the BDP, a further allocation of €5 million has been earmarked for the continuation of the Beef Technology Adoption Programme (BTAP) in 2014. Last year, some 5,500 farmers each received an annual payment of €925 in relation to their participation in the first year of the BTAP. In total, these measures, added to residual payments under the Suckler Cow Welfare Scheme, amount to an investment of €40m in this strategically important sector in 2014.