Written answers

Tuesday, 8 July 2014

Department of Agriculture, Food and the Marine

Beef Industry

Photo of Gerald NashGerald Nash (Louth, Labour)
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591. To ask the Minister for Agriculture, Food and the Marine his views on beef price levels and the attendant difficulties experienced by farmers as a direct result of pricing levels; the action he will take to provide sustainable incomes and living standards for farmers in the beef sector in view of the ambitious targets set out under Harvest 2020; and if he will make a statement on the matter. [29221/14]

Photo of Simon CoveneySimon 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 in relation to beef prices at this time. Prices have declined since the highs of last year, not only in Ireland but internationally and also in our most important beef export market, the UK. However as the Deputy is aware, it is not for me or for that matter any Minister for Agriculture to determine beef prices, as this is a matter for the market and ultimately one between suppliers and processors.

Nevertheless 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. The Beef roundtable provides a platform for positive engagement between farmers, processers and stakeholders in the sector. There have already been a number of initiatives in the wake of this forum. These include:

- The Beef Roundtable 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 is progressing 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 roundtable participants to reflect on its recommendations. In addition, last Friday I called on the beef processors to be more proactive in dealing with the current issues and implementing the recommendation in the Dowling report.

I also 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.

Last week I submitted a draft €4 billion draft Rural Development Programme to Brussels which includes a significant developmental component for the beef sector. 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.

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