Written answers

Tuesday, 15 October 2019

Department of Agriculture, Food and the Marine

Beef Industry

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael)
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77. To ask the Minister for Agriculture, Food and the Marine his priorities from the establishment of the beef market task force; the timeline for progress of meetings; and if he will make a statement on the matter. [41987/19]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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There have been a series of formal negotiations with beef sector stakeholders, facilitated by my Department, since early August, culminating in an agreement being reached between stakeholders on Sunday 15 September.

The full text of the Agreement is available on my Department's website:

The Agreement involves a number of interventions which will provide immediate benefit for beef producers, as well as a range of strategic measures which seek to address structural imbalances in the sector.

Beef producers will benefit from an immediate increase in a range of bonuses. This will increase the level of bonus being paid on certain animals, as well as significantly increasing the number of animals which are eligible for a bonus. The cumulative effect is that over 70% of all steer and heifers slaughtered will now be eligible for a bonus on top of the base price paid.

A number of actions in the area of market transparency, beef promotion and strengthening the position of the farmer in the supply chain are included in the Agreement. These measures set a course towards greater clarity for all stakeholders involved in the beef supply chain, primarily farmers.

My Department is also proactively engaging with several potential beef Producer Organisations, which have to potential to strengthen the bargaining power of beef farmers in the supply chain. Two beef producer organisations have been formally recognised by my Department in recent weeks.

I have established a Beef Market Taskforce to provide the leadership to develop a sustainable pathway for the future of the beef sector in terms of economic, environmental and social sustainability. The Taskforce will provide a robust implementation structure for commitments entered into in the Agreement, with timelines and stakeholder engagement. Furthermore, the Beef Market Taskforce will offer a suitable platform for strategic engagement with key stakeholders, including retailers and regulatory authorities.

I have appointed Michael Dowling as independent Chair of the Taskforce, and its membership includes representatives from my Department, relevant State agencies, farm organisations and the meat industry. The Beef Taskforce scheduled for yesterday, 14 October, was adjourned, as members of the Taskforce were prevented from attending the meeting. It is in the interests of everyone involved in the beef industry that the work of the Taskforce goes ahead. The Taskforce’s remit is to monitor the implementation of the actions arising from the agreement reached on 15 September and offers the most viable platform for strategic engagement with key stakeholders. It was a great pity that farm representatives were not in a position to air the legitimate concerns of farmers at the Taskforce.

Photo of Bobby AylwardBobby Aylward (Carlow-Kilkenny, Fianna Fail)
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78. To ask the Minister for Agriculture, Food and the Marine if he requested compensation at European level to assist farmers who have incurred beef price losses since May 2019; and if he will make a statement on the matter. [41964/19]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I have had ongoing discussions with Commissioner Hogan and Commission officials in regard to the significant beef market disturbance which has already occurred, and particularly in relation to the threat posed to the beef sector in Ireland, as well as in other Member States, by a No-Deal Brexit. I raised these issues again during a bilateral yesterday en marge of the Agriculture Council in Luxembourg.

It is significant that the European Commission's communication of 3rd September in relation to No-Deal preparations highlighted the market support measures under the CMO regulation, which, of course, include exceptional aid provisions. The Commission committed that "the full spectrum of exisiting instruments for market support and direct financial support to farmers will be made available to mitigate the worst impact on agri-food markets".

The Irish Government has provided significant financial support to the beef sector over the past number of years through national funding and EU funding under the €4 billion Rural Development Programme (RDP) 2014 - 2020.

The Beef Data and Genomics Programme (BDGP) provides Irish beef farmers with up to €300 million in funding over the current RDP and provides a high degree of important performance data to beef farmers to drive efficiency through facilitating better decision making.

My Department has rolled out a range of other schemes from which beef farmers benefit, as part of the RDP including GLAS, ANCs and Knowledge Transfer Groups. Suckler farmers also benefit, of course, from the Basic Payment Scheme (BPS) and Greening payments under CAP Pillar I.

In 2019, a further €20 million of exchequer funding was made available through the Beef Environmental Efficiency Programme, to encourage farmers to measure the weaning efficiency of their suckler cows.

And, of course, the Beef Exceptional Aid Measure (BEAM) has provided temporary exceptional adjustment aid to farmers in the beef sector in Ireland subject to the conditions set out in EU Commission Implementing Regulation (EU) 2019/1132.

BEAM is funded by a combination of EU aid and Exchequer support, provided in light of the difficult circumstances that Irish beef farmers have been facing as a result of the market volatility and uncertainty. Over 34,500 farmers had applied for BEAM at its closing date of 20 September, representing potential commitments of almost €78 million.

In recognition of the important income support role played by the ANC scheme, the total allocation for the scheme has been increased by €48m over the last two budgets (€25m in Budget 2018 and €23m in Budget 2019). In both 2018 and 2019, payment rates in the scheme were increased, with a targeting of increases corresponding to the different level of constraint in the different categories of land in the scheme.

In Budget 2020, I have provided almost €85 million in targeted schemes to support sustainable beef farming. This includes almost €45 million for the BDGP, and a further €40 million for targeted supports. I intend to consult with stakeholders as to the use of these funds.

In addition, in the event of a No-Deal Brexit, my colleague the Minister for Public Expenditure and Reform confirmed in Budget 2020 that a Brexit contingency fund of €650 million will be available to support our most vulnerable sectors, to be activated in tranches as the full impacts emerge. €110 million will be made available through my Department in the first tranche, of which €85 million will be provided in immediate supports for beef farmers. This will, of course, be supplemented by any exceptional aid provided from the EU under the CMO regulation.

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