Brendan Griffin (Kerry South, Fine Gael)
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405. To ask the Minister for Agriculture, Food and the Marine his views on the price of beef; the way he will assist farmers; and if he will make a statement on the matter. [26598/14]

Simon Coveney (Cork South Central, Fine Gael)
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I am acutely aware of the importance of the beef sector and sensitive to the concerns of farmers at this time. The current downward pressure on Irish beef prices is of course replicated in the UK, which is our main export market, and in other key EU markets. That said beef prices in Ireland remain above the average of the EU-15 MS and the price differential between the Irish and UK markets has narrowed substantially in recent months. However as the Deputy is aware, it is not within my gift or that of any Minister for Agriculture to become involved in the issue of beef prices, as this is one between suppliers and processors.

Against the background of the current concerns, I met separately with representatives of the farm organisations (IFA, ICMSA, ICSA) and meat factories (MII) in February and March this year. More recently, 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 chaired a second meeting on 3 June. There have already been a number of initiatives in the wake of this forum. These include:

- The Beef Round-table discussions will reconvene quarterly to exchange intelligence on market developments and forecasts particularly in relation to supply, demand, prices, product specifications, retail changes etc;

- I have committed to launching a ‘Beef Pricewatch’ online tool to make price information more accessible and free of charge to farmers. Work has commenced and already as an initial step the department has improved its website in order to make price information more user friendly for farmers;

- My Department is examining the possibility of legislating for therecognition of producer organisations in the beef sector. This initiative could provide a vehicle for collective action by farmers in a way that can give them the advantages of scale and market presence, as well as a useful vehicle for transferring technology and expertise to improve profitability at farm level;

- My Department will prioritise its targeted on-farm capital investments for suckler farmers through the new Rural Development Programme;

- Bord Bia has allocated €0.5m to expand and target promotion of Irish beef through its campaigns in the UK and in certain continental markets.

During the first beef forum, I had requested Mr. Michael Dowling, Chairman of the Beef 2020 Activation Group, to review the implementation of the Group’s report, after intensive consultation with all stakeholders. That report has been delivered, and I have asked round-table participants to reflect on its recommendations.

As the Deputy is aware this year I announced details of an investment package worth up to €40m to beef farmers in 2014, aimed at sustaining a critical mass in the suckler cow herd, the seedbed for our beef industry. This package includes:

- €23m for the Beef Genomics Scheme;

- €10m for the Beef Data Programme;

- €5m for the Beef Technology Adoption Programme; &

- €2m in residual payments under the Suckler Cow Welfare Scheme.

I also announced details in relation to the financial allocations for the new Rural Development Programme 2014-2020 (RDP) as well as outlines of the proposed measures for inclusion. The development of a new RDP will be a key support in enhancing the competitiveness of the agrifood sector, achieving more sustainable management of natural resources and ensuring a more balanced development of rural areas.

Under the new RDP, beef suckler farmers will be eligible for participation under a range of measures, including:

- a substantial new agri-environment/climate scheme (GLAS), which will build on the progress made under REPS and AEOS. This will provide for a maximum payment of €5,000 for up to 50,000 farmers and a further payment of up to €2,000 for a limited number of farmers who take on particularly challenging actions;

- continued strong support for disadvantaged areas (now known as Areas of Natural Constraint) to the tune of about €195 million per year;

- incentives for on-farm capital investment, including support for the expansion of the dairy sector following the abolition of milk quotas in 2015;

- knowledge transfer and innovation measures, aimed at underpinning farm viability, sustainability and growth through the adoption of best practice and innovative solutions;

- a new beef data and genomics measure worth up to €52 million per year aimed at improving the genetic quality of the beef herd;

- a separate strand of the support for on-farm capital investment will be ring-fenced for young farmers at a higher rate of aid intensity of 60%; &

- other supports aimed at collaborative farming, artisan producers, organic farming etc.

The Government is confident that this range of measures will, when taken together with other Pillar I direct payments, assist suckler farmers to improve their on farm viability.