Written answers

Wednesday, 10 March 2021

Department of Agriculture, Food and the Marine

Beef Industry

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
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1043. To ask the Minister for Agriculture, Food and the Marine the actions he is taking with regard to beef prices for Irish farmers; and if he will make a statement on the matter. [13491/21]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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As the Deputy will be aware, prices for beef and other commodities is a commercial matter which I have no role in determining.

I am acutely aware of the recent price volatility in the beef sector and I am conscious that the sector is particularly exposed to factors such as COVID, given its reliance on external trade and the food service and hospitality markets.

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. My Department is also working actively to ensure that Irish beef has access to as many high value markets as possible.

The nature of all markets is that the price will fluctuate especially in the case of market disturbance, as has been evidenced during the COVID-19 crisis and that caused by uncertainty surrounding Brexit. My Department provides a range of financial aids to support beef farm incomes and to support economic and environmental efficiency.

The core support for the beef sector under the current RDP is the €300 Million Beef Data and Genomics Programme. In addition to this support, over the last two years, over €200 million of additional supports were made available specifically to the beef sector, including the BEAM and BEEP schemes in 2019 and the Beef Finishers Payment and BEEP-S in 2020.

In Budget 2021, €85 million has been allocated for specific supports for sustainable beef farming. This includes over €40 million for the extension of the BDGP during the transition period before the next CAP. The Beef Sector Efficiency Pilot with an allocation of €40 million is due to be launched shortly.

Bord Bia’s beef market tracker includes a comparison of a prime Irish composite price with a comparative export benchmark price based on a weighted average of our key export markets. This tracker was put in place as a result of the work of Beef Market Task Force and provides an additional measure of transparency in relation to beef prices, which is critically important. The Task Force has also commissioned Grant Thornton to conduct a series of market transparency studies.A meeting of the Taskforce was held this week with an update from Grant Thornton on its work to date.

I addressed the meeting where I expressed my concerns with the manner in which factories informed farmers over last month's price cut and changes to breed bonuses and weight limits.

A key component of the Programme for Government is the establishment of a Food Ombudsman and I am now considering how best to bring this forward and will be consulting with industry on it. I am also considering how to include price transparency and reporting as part of its functions.

I can assure the Deputy that my Department is constantly monitoring the market situation for all agricultural commodities, including beef.

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
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1044. To ask the Minister for Agriculture, Food and the Marine if legislation being introduced for the proposed food ombudsman will have powers to deliver transparency within the beef sector; and if he will make a statement on the matter. [13492/21]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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The Programme for Government includes a commitment to:

Ensure fairness, equity, and transparency in the food chain by establishing a new authority called the National Food Ombudsman (NFO) to enforce the Unfair Trading Practices Directive. This new authority will enforce EU-wide rules on prohibited unfair trading practices in the food supply chain and will have powers to enforce this Directive, penalising those who breach regulations.

My Department is taking a two step approach to the establishment of the NFO (or equivalent office). Firstly, a statutory instrument will be drafted to transpose the UTP Directive by the deadline of 1st May 2021. This will provide for an Enforcement Authority which will have the powers as currently provided for in the Directive. The legislative and operational requirements for establishing a new Office of a Food Ombudsman or equivalent that might provide for functions other than those provided for in the UTP Directive are being examined. Primary legislation will be required both to establish this new authority, and to provide for any further powers which may be given to that office.

It is intended that there will shortly be a national consultation process on the possible functions of the NFO.

The UTP Directive does not address issues of price determination or negotiation. While the Programme for Government commitment provides that the new NFO (or equivalent office) will have a specific role in analysing and reporting on price and market data in Ireland, it is important to be aware that this authority will not have a role in determining price.

The Beef Taskforce work on price transparency, and the completion of the three market transparency studies commissioned by my Department, will be an important step towards improving visibility of the complex supply chain which is integral in fostering trust and enhancing supply chain relationships. These studies will act as an important starting point for driving increased transparency. It is more important than ever that we all work together given the unique set of challenges currently faced by the sector. Continued strong and constructive engagement in the Beef Taskforce is key to meeting these challenges.

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