Written answers

Tuesday, 13 February 2018

Department of Agriculture, Food and the Marine

Beef Industry

Photo of Margaret Murphy O'MahonyMargaret Murphy O'Mahony (Cork South West, Fianna Fail)
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488. To ask the Minister for Agriculture, Food and the Marine his views on the growing campaign relating to the beef grid, particularly in circumstances in which his predecessor gave a commitment to review the matter in November 2015; and the reason for the protracted delay in providing a review. [7224/18]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The Quality Payment System (QPS) was introduced in December 2009 following intensive negotiations between Meat Industry Ireland and farmers representatives in order to incentivise and reward the production of quality beef for cattle with a superior carcass confirmation. The payment system involves the use of a base price agreed between processors and suppliers for cattle with a carcass confirmation of R= and R- and a fat class of 2+, 3 and 4. Cattle grading better than these base criteria will receive a premium above the base price and cattle grading below these base criteria will receive a price less than the base price.

The QPS or beef grid as referred to in this question, is a payment mechanism whereby a price is determined and paid by processors to farmer suppliers. As this is a commercial matter between processors and farmers I cannot interfere with this and it would be inappropriate for me or my Department to take a role in a review of any pricing mechanism.

It is therefore the responsibility of the beef processing industry and farming organisations to discuss the QPS and formulate the methodology of any review. It is their agreement and therefore it must be their review and I have stated this position several times. However, if both parties do wish to undertake a review of the QPS I have offered the services of Teagasc to provide any technical assistance in any review of the grid.

Photo of Margaret Murphy O'MahonyMargaret Murphy O'Mahony (Cork South West, Fianna Fail)
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489. To ask the Minister for Agriculture, Food and the Marine the reason live exporters are not represented at the beef forum (details supplied). [7225/18]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The Beef Roundtable was established in April 2014 in order to facilitate open discussion between industry and farming organisations on the strategic path for the beef sector over the coming years. There have been eleven meetings of the Roundtable, the most recent being on 6 February. No decision has been made to widen representation at the Roundtable beyond the original participants.

While the agenda of the most recent meeting did not include a specific item on live exports, the issue was discussed during the Roundtable. The Deputy will be aware that in the last year I have undertaken several trade missions to facilitate access to new markets and develop existing markets for Irish exports. In the last week of January I, along with officials from my Department and Bord Bia, and representatives of Irish live cattle export companies, visited Turkey, which last year was our third largest market for the export of live cattle. I had a successful meeting with my Turkish counterpart, Minister Fakibaba, and we agreed to set up an official contact group to facilitate detailed discussions on certification issues.  Minister Fakibaba also confirmed that, from the end of May, private sector buyers will be permitted to import cattle for fattening. Currently this trade is through State body ESK only.

My Department and I will continue to place a great importance on the cattle export trade as a means of providing an alternative market outlet for Irish cattle farmers. This is very much reflected in the increase in live exports in 2017 with an increase of approximately 45,000 head of cattle or 30% compared to 2016. In addition, in 2017 I reduced the veterinary inspection fee that is payable on live exports of calves less than three months of age to €1.20 per animal from €4.80, in order to bring greater equity in the fees payable per consignment in respect of calves, weanlings and adult cattle.

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