Bernard Durkan (Kildare North, Fine Gael)
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78. To ask the Minister for Agriculture, Food and the Marine the extent to which he and his Department continue to monitor the development of the beef industry, with a view to minimising peaks and valleys, and offering producers a reasonable return on their investment; and if he will make a statement on the matter. [7237/15]

Simon Coveney (Cork South Central, Fine Gael)
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Price volatility has been a significant feature of agricultural commodity markets including beef in recent years. In Ireland, average prices rose steadily from €3.22 a kilo at the start of January 2011 to an unprecedented peak of over €4.40 per kilo in June of 2013. They subsequently declined to €3.51 in September of 2014 before recovering to the current price with tightened supplies of €4.05 excluding VAT. Prices are a function of normal supply and demand factors which are in turn influenced by the seasonality of production, the length of the production lifecycle, and market conditions such as retail promotions, consumer confidence, competition with other meats, exchange rates and the overall macroeconomic situation. Last year Irish processors slaughtered nearly 10% more animals than in 2013 and over 17% more than in 2012, while there has been a drop in beef consumption throughout Europe.

There are structures in place to help to alleviate the impact of these price changes, and to help farmers to reduce production costs and increase efficiencies. Successive reforms of the Common Agricultural Policy have involved a shift in emphasis from market supports to direct payments to farmers. The €1.2 billion per year secured in direct payments each year forms a constant and secure income for farmers, and this is a particularly important buffer as prices fluctuate. In addition, the need to ensure a viable future for the beef sector has been central to the draft €4 billion Rural Development Plan submitted to the EU Commission in July.

The RDP includes a number of elements which will be of benefit to beef farmers throughout the country, including the Beef Data and Genomics Programme which will be worth around €300 million over a 6 year period and should bring about long term improvements to the sector though improving the genetic quality of the beef herd. Also, the continued support under the new agri-environment scheme GLAS and the €195 million per year support for disadvantaged areas will be of significant benefit to beef farmers. 

Reducing input costs and improving efficiencies on farms has also been a key focus, and in this regard the funding by my Department to Teagasc, ICBF and Animal Health Ireland is critically important. I have also been active in developing new market opportunities for Irish beef and in recent years markets such as, Japan, Singapore, Egypt and Iran have been opened. In addition, I launched Irish beef on the lucrative US market last week and I am confident of further success in the coming months.

Finally, it should be noted that prices for R3 steers in Ireland have risen by 54 cents per kilo since the beginning of September. This is an increase of over 15 % during this period and Irish prices are now at 105 % of the EU15 average price.