Written answers

Tuesday, 4 March 2014

Department of Agriculture, Food and the Marine

Beef Exports

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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356. To ask the Minister for Agriculture, Food and the Marine if he will confirm that Irish cattle, when exported to the UK with an ie eartag, will sell for 40p sterling less than cattle with a UK eartag; if he will confirm that this is due to the control exercised over the UK slaughter houses by Irish meat processors via their control of the offal industry; and if he will make a statement on the matter. [10820/14]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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With regard to the price differential between Irish and UK cattle, a number of factors have been identified to explain why Irish-born cattle command lower prices than their British equivalents. These include a British consumer preference for indigenous product as well as additional transport and processing costs in supplying that market. Ireland’s trade with Britain accounts for 53% of our beef export volumes and, at around 250,000 tonnes in 2013, is equivalent to 750,000 cattle with a high level of penetration in the multiple retail sector.

One of the main difficulties in marketing young bulls older than 16 months is that these animals are outside the specifications preferred by the UK market. This is a major disadvantage at present because the UK market has effectively become the highest-priced beef market in the EU.

The potential to grow the live trade to Britain is also constrained by the labelling system operated by the retail chains in relation to cattle born in this country and exported live for finishing and processing in the UK. The retailers’ longstanding policy is to market British and Irish beef separately. This means that beef must be sourced from animals originating in one country; i.e. born, reared and slaughtered in the same country. In addition, logistical difficulties arise when a small number of Irish-born animals are slaughtered in a UK meat plant. Under mandatory EU labelling rules, these carcases have to be deboned in a separate batch, packaged and labelled accordingly, thereby incurring additional costs for the processor.

While Bord Bia has repeatedly raised the labelling issue with British retailers over the years, there are no indications that their marketing policy is likely to be reversed soon. Nevertheless, Bord Bia in its ongoing interactions with British customers will continue to pursue all opportunities, including any change in labelling policies, to maximise the full potential of the beef and livestock trade with our largest trading partner.

In relation to allegations of anti-competitive practices by the meat plants either in Ireland or the United Kingdom, I would suggest that if the Deputy has information to substantiate such charges he should address them directly to the Competition Authority in Ireland and its equivalent body in the UK, the Competition Commission, who are the appropriate bodies to investigate these matters.

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