Pat Deering (Carlow-Kilkenny, Fine Gael)
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536. To ask the Minister for Agriculture, Food and the Marine if he will provide an update on recent round table discussions on difficulties in the beef industry. [25982/14]

Simon Coveney (Cork South Central, Fine Gael)
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As the Deputy is aware, I invited key stakeholders, including farm organisations, beef processors and relevant state agencies, to a round table discussion on the future development of the beef sector on 17 April and held a second meeting on 3 June. This initiative was intended to provide a useful forum for all the main players in the industry to engage positively and present constructive ideas on positioning the sector to address the challenges and prepare for the opportunities that lie ahead.

The discussions at the second roundtable included presentations from ICBF, Bord Bia and Teagasc with the main focus on the presentation by Mr. Michael Dowling, who had updated his work on the implementation of the Beef Activation Group report. Bord Bia’s presentation gave an update on the additional marketing work that it will undertake in key markets for Irish beef including the UK, Netherlands and Germany with the extra €0.5 million allocated for this purpose. ICBF’s presentation showed the contribution that better breeding can move to improving profitability for Irish beef farmers. Teagasc focused on the work it is doing to educate farmers on efficient production to increase output per unit and ultimately the farm’s operating margins. All of the presentations are available on my Department’s website and I have called on all interested stakeholders to study them and communicate any suggestions for further work to my Department.

In his report, Mr Dowling recommended among other items that consideration be given in particular to the following main points: Improved transparency and timely communication on price and market specification between particularly suppliers and processors; a formalised mechanism for ensuring that research, breeding and education remains consistent with evolving market realities; the potential for Producer Organisations recognised under the EU’s Common Market organisation rules to play a role in building scale for farmers in the supply chain and building more professional relationships with the processing sector; the possibility for more formalised contract arrangements between factories and their suppliers.

On the question of transparency, my department has already made a number of improvements to its website in order to make price information more user friendly for farmers. This is a key step along the road to developing a Beef Pricewatch app for mobile phones and tablets. The Dowling report also calls on processors to ensure that communication with farmers on any changes to market specifications takes account of the normal production cycle.

In addition I am making arrangements to ensure that Teagasc, Bord Bia and ICBF engage to ensure that advice, education and breeding policy remains consistent with evolving market realities.

Furthermore my Department is examining the possibility of legislating for the recognition of producer organisations in the beef sector, and will shortly be launching a consultation with key stakeholder groups in this regard.

Of course the key objective of this forum was to provide a vehicle, but not the only vehicle, to facilitate positive engagement between stakeholders in the beef sector, including processors and farmers. It is clear that the relationship between these parties is one of mutual dependency and there may be significant benefits for both suppliers and processors from extending the use of more formalised supply contracts where this is possible.

On questions of price, these are matters for the market, and for negotiation between the contracting parties. However, it is clearly the case that the best interests of the industry will be served by honest engagement, transparency, clear communications, and by a recognition of the legitimate concerns of each of the parties. While there is a responsibility on farmers to improve efficiency and reduce costs behind the farm gate, it is equally the case that their clear vulnerability to sharp changes in market conditions must be recognised, and that the relationship between parties along the beef supply chain must be carefully managed with this in mind, if supply is to be maintained and the beef sector is to perform to its potential in the future.

At this juncture I would urge the stakeholders to reflect carefully on the proceedings at the first two meetings of the beef forum, and on the Dowling report, and to take time to engage with each other on its recommendations in order to find mutually satisfactory solutions to the current issues.