Jennifer Murnane O'Connor (Carlow-Kilkenny, Fianna Fail)
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461. To ask the Minister for Agriculture, Food and the Marine the reason factory fit cattle pricing fell approximately €150 a head to €3.53 per kilogram and the price drop was not passed on to the supermarket customer and the farmer suffered the price loss not the supermarket or the processor. [9852/20]

Michael Creed (Cork North West, Fine Gael)
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As the Deputy will be aware, prices for beef and other commodities is a commercial matter which I, as Minister for Agriculture, Food and the Marine nor my Department, have any role in determining.

I am acutely aware of the issues presented to the agri-food sector in the context of the ongoing COVID-19 crisis and I am aware that the beef sector is particularly exposed given its reliance on external trade and the food service and hospitality markets.

My officials and I have ongoing contact with all the key stakeholders across both the beef and dairy sectors. More than ever in the ongoing response to the Covid-19 pandemic, I am aware of this need for ongoing contact as the situation has evolved. My Department and I are working to ensure that business and services to farmers can continue, keeping food and other processing facilities operational, ensuring that payments and commercial activities that are necessary to protect farm incomes can continue.

There are likely to be significant economic impacts for the agri-food sector, arising from reduced demand in key markets around the world. The loss of high value food service customers is already of significant immediate concern.

The response to the economic impacts on the sector should include a strong, shared EU response, using the instruments available in the Common Agricultural Policy. I have already highlighted to Commissioner Wojciechowski the serious consequences for farmers and the food industry and the need to ensure that the full range of market supports available under the Common Market Organisation Regulation are made available. These supports include Aids to Private Storage and Exceptional Aid measures, flexibilities when it comes to on-farm inspections and early payment of the Basic Payment Scheme.

Following Ireland’s efforts in leading an agreed EU-27 statement on the need for further supports, the Commission have introduced Aids to Private Storage for Dairy (SMP, Butter, Cheese), Beef and Sheepmeat. Private Storage Aid (PSA) is a risk management tool/safety net available to EU producers of certain agricultural products under the CMO regulation (1308/2013). The aim is to facilitate producers to store the product for a stipulated temporary storage period.

I am also working with my colleagues in Government to ensure that all businesses, including those in the agri-food sector, get access to suitable supports, and the measures in place are being kept under review.

My Department and agencies will continue to monitor the impacts on the agri-food sector as the situation evolves, and to provide appropriate supports to the sector. My Department remains in constant contact with stakeholders right across the meat and dairy sectors to share information on emerging issues and contingency planning, and we will continue to develop appropriate supports as the situation evolves.