Willie Penrose (Longford-Westmeath, Labour)
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34. To ask the Minister for Agriculture, Food and the Marine the way in which the EU agricultural markets task force recommendations will help get a fairer price for Irish beef and lamb producers; and if he will make a statement on the matter. [37563/16]

Michael Creed (Cork North West, Fine Gael)
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The Agricultural Markets Task Force was established in January 2016 to consider the functioning of the supply chain and the position of farmers within it. Its report was published in November and its contents and recommendations deserve careful consideration. The relatively weak position of farmers across the European Union in the supply chain is generally acknowledged.The issue is an international one, and is not easy to resolve. It was important that it be given consideration at European Union level, because any solutions will be most effective if adopted at that level. For this reason I very much welcome the publication of this report, which will be discussed at the Council of Ministers in December and there will also be further consideration of the report in early 2017.

The report includes a range of recommendations, including in relation to increased price transparency, better risk management, the regulation of unfair trading practices, greater use of contracts, greater clarity around the application of competition law to producer groups, and a shift in post 2020 CAP direct payment supports towards risk management type instruments. The devil of any proposals emerging will be in the detail, and some of the recommendations could have quite profound effects on public policy which would need further elaboration before they can be properly considered.

The Task Force report also recommends mandatory price reporting for the meat industry. Ireland already reports beef, sheepmeat, pigmeat and poultry prices on a weekly basis, and my Department publishes a high volume of statistical data in these areas to its website in a clear and concise format. The data further up the supply chain is not as transparent. In order to strengthen the position of farmers in the supply chain, I have signed legislation for the recognition of Producer Organisations in the beef sector into law earlier this year. This will allow groups of farmers to come together to negotiate directly with factories. An application for approval of funding for the provision of advice to Producer Organisations and prospective Producer Organisations under Ireland’s Rural Development Programme has been made to the European Commission and my Department is currently awaiting a decision on this application as part of Ireland’s second RDP amendment. We strongly support the use of contracts overall particularly for winter finishers although it is not clear that a mandatory regime would necessarily be in the best interest of all farmers

In conclusion the issues raised by the Task Force are of utmost importance and provide a serious basis for serious discussion on a matter which is of profound importance for farmers across the EU. My Department will work closely with The European Commission, Member States and stakeholders across the beef and Sheepmeat sectors on any further proposals emerging from its work.