Written answers

Wednesday, 12 November 2014

Department of Agriculture, Food and the Marine

Beef Industry

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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88. To ask the Minister for Agriculture, Food and the Marine the extent to which he is satisfied that beef producers here are likely to receive a fair price for their product, with particular reference to the need to strive towards a price to producers similar to that in the adjoining jurisdiction; and if he will make a statement on the matter. [43474/14]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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As the Deputy will appreciate, questions of price are ultimately matters to be determined between the purchasers and the sellers of cattle. It is neither appropriate nor possible for me or any other Minister for Agriculture in the EU, to intervene directly on these issues. Indeed, the new Competition and Consumer Protection Commission has emphasised this point again in recent days via correspondence directed to my Department. Cattle prices are determined by supply - demand dynamics which are in turn influenced by a range of different factors such as consumer preferences, distance to market, consumer confidence, retail promotions, competition with other meats and the overall macroeconomic situation. Nonetheless, it is vital that farmers are sufficiently remunerated for producing quality animals. My role as Minister for Agriculture is to create a policy support environment that will allow the beef sector to flourish in line with normal market principles.

In the recent budget, I announced a total package of approximately €74 million for the beef sector in 2015, including a provision of €52 million for a proposed Beef Data and Genomics Programme which will place Ireland at the leading edge globally in the use of genomics in beef production. The current Genomics Scheme is being further developed and enhanced as part of a 6-year RDP measure which, once approved by the European Commission, will deliver a payment per animal of €100 for the first ten animals, with the remaining animals being eligible for an €80 payment per animal in participating herds. In 2014, I have brought forward a number of initiatives to help the sector, including the creation of the Beef Genomics Scheme with a budget of €23 million in 2014. I have also ensured that the budgets of the Beef Data Programme and the Beef Technology Adoption Programme are retained at €10 million and €5 million which, when added to residual payments under the Suckler Cow Welfare Scheme, amounts to an investment of €40m in 2014.

I have also been proactive in securing new market opportunities for Irish beef with Japan, Lebanon and Philippines opened in the last 12 months and significant progress in the US and Canada where I expect Irish beef to be landing on supermarket shelves sometime soon. In addition I made a major breakthrough in China last week where I secured the agreement of the Chinese authorities to send a formal inspection team to Ireland within the next month.

I will continue to engage with both farmers and processors to ensure that the market operates in a fair and transparent manner. Improved transparency has been delivered through the development of a Beef Pricewatch App which was developed by Department and already has 17,000 users. The App presents a range of up to date price information in a user-friendly fashion and is available free of charge to farmers and others interested in this information. The feedback from the users to date has been extremely positive and my Department is already giving consideration to adding new features over time.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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89. To ask the Minister for Agriculture, Food and the Marine the extent to which beef production and beef prices here have fluctuated annually over the past five years; and if he will make a statement on the matter. [43475/14]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The numbers of animals slaughtered at DAFM approved facilities over the last 5 years are provided below. This includes the number of animals slaughtered in 2014 to-date which is over 10% higher than the number slaughtered in the same period last year and nearly 20% ahead of the same period in 2012.

Slaughter figures

2010 2011 2012 2013 2014 (YTD)
1,637,431 1,559,684 1,391,586 1,485,772 1,385,825


As demonstrated by the figures below, the price paid for R3 steers in Ireland climbed steadily over the four years to 2013, before declining in 2014 . Nonetheless, it should be noted that the average year-to-date figure in 2014 is well ahead of the average figure in the years preceding 2012.

R3 Steer Price (cents/kilo excluding VAT)
2010 2011 2012 2013 2014 (YTD)
291.39 343.65 386.38 407.47 368.91

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