Brendan Smith (Cavan-Monaghan, Fianna Fail)
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230. To ask the Minister for Agriculture, Food and the Marine his plans to implement measures to assist the suckler beef sector in view of ongoing difficulties facing farmers; and if he will make a statement on the matter. [21074/19]

Michael Creed (Cork North West, Fine Gael)
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The agri-food sector is of critical importance to the Irish economy, and its regional spread means it underpins the socio-economic development of rural areas in particular. Brexit has the potential to have a very significant impact on the sector, given its unique exposure to the UK market, which accounted for 38% (€5.2 billion) of agri-food exports last year.

There are on-going discussions with the Commission regarding the difficulties which would face Ireland in the event of a no-deal Brexit, and the assistance that might be required for its agriculture food and fishery sectors. Avoiding a no-deal Brexit continues to be the Government’s overriding policy priority.

I have held a number of discussions with Commissioner Hogan regarding the potential impact of a disorderly Brexit on the sector. I have stressed the need for the Commission to be ready to deploy a range of measures to mitigate the potential impacts on agri-food and fisheries, including through traditional market supports and exceptional aid under the CAP's Single Common Market Organisation regulation (Regulation (EU) No 1308/2013), as well increased flexibility under State Aid regulations.

Obviously, as Minister, I have no role when it comes to prices paid to producers but it is important to acknowledge that the past few months have been very difficult for beef farmers in particular, following a difficult year in 2018 due to weather conditions. There has been a period of depressed prices since last autumn with the ongoing uncertainty surrounding the outcome of Brexit, among other factors, contributing to this market disturbance. I also note that prices have started to increase week-on-week recently mainly due to tightening supply of cattle and the outlook is that this will continue. Market intelligence also points towards other factors such as the presence of African Swine Fever in China affecting their pork output, thereby strengthening the demand for beef in a market to which Ireland already has access.

In light of the on-going market disturbance, I have, in discussions with Commissioner Hogan and my EU counterparts, said that I believe that the deployment of exceptional measures under the CMO Regulation, to provide targeted aid to farm families who have suffered a sustained reduction in returns from the market, is now required. I made an intervention to this effect at the April meeting of the Council of Agriculture Ministers, and my officials have followed this up with a detailed submission, which is under consideration by Commission officials.

I am deeply committed to fully supporting and developing Ireland’s beef sector. I am strongly of the view that the existing range of supports available to beef farmers under the Rural Development Programme (RDP), together with ensuring access to as many markets as possible, both for live animals and beef exports, are appropriate for the continued development of the sector.

The Beef Data and Genomics Programme (BDGP) is currently the main support specifically targeted for the suckler sector, which provides Irish beef farmers with some €300 million in funding over the current RDP period. Building on this is the Beef Environmental Efficiency Pilot (BEEP), a €20 million pilot project for 2019.

My Department has rolled out a range of schemes as part of the €4 billion Rural Development Programme (RDP), 2014 - 2020. In addition to the BDGP, other supports which are available for suckler farmers under Pillar II of the CAP include GLAS, ANCs and Knowledge Transfer Groups. Suckler farmers also benefit from the Basic Payment Scheme (BPS) and Greening payments under CAP Pillar I. According to National Farm Survey already suckler farmers receive support equivalent to approximately €500 per suckler cow on average.

My Department is examining all appropriate measures to support the different agrifood sectors, including the suckler sector in preparation for the next iteration of the CAP, and through the next Agri Food strategy to 2030. My view is that such measures should support and encourage suckler farmers to make the best decisions possible to improve the profitability and the economic and environmental efficiency of their farming system.

Michael Creed (Cork North West, Fine Gael)
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The Beef Roundtable was most recently convened in October 2018 and the date for the next session will be announced in due course. I am satisfied that farmers are well represented by a variety of farming organisations at the Roundtable. Written submissions to my Department from any stakeholder representative body requesting participation in the Roundtable will be considered in that context.

Michael Creed (Cork North West, Fine Gael)
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If the Deputy is referring to a controlled finishing unit (CFU, formerly known as “feedlot”), then all animals from such a unit may only move from the unit direct to slaughter. Where permission is sought to move in female animals, such CFU herds must, notwithstanding that there is no intentional breeding planned, satisfy the Regional Veterinary Office, bearing in mind the calf welfare Regulations, that there are appropriate facilities to rear any unplanned calves born and, if necessary, carry all such calves through to slaughter.

Otherwise for farms outside this category, this is a commercial decision for the parties involved, bearing in mind the calf welfare Regulations.

Michael Creed (Cork North West, Fine Gael)
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A Quality Payment System (QPS) related to the beef grid was agreed between Meat Industry Ireland (MII) and the Irish Farmers Association (IFA) in 2009. The payment is based on the classification of the carcass in which a price differential is set between certain classification grades.

My understanding is that any additional bonus payments and the conditions attached to qualification for such payments are determined by processors and their retail customers. There are a number of conditions which pertain to such payments and may include age limits and restrictions on the number of movements allowed. These are commercial arrangements and my Department has no role in their establishment, nor in collection or analysis of the payments which are made.

However, as I have previously stated, if relevant parties do wish to undertake a review of the grid, I have offered the services of Teagasc to provide any technical assistance in this regard.

The Beef Roundtable was most recently convened in October 2018 and the date for the next session will be announced in due course. I am satisfied that farmers are well represented by a variety of farming organisations at the Roundtable. Written submissions to my Department from any stakeholder representative body requesting participation in the Roundtable will be considered in that context.