Update: Beef Producer Losses – Agriculture 23rd September, 2014

Parliamentary Question No.254   
  
To ask the Minister for Agriculture, Food and the Marine the extent to which losses incurred by producers involved in rearing bull beef has served a means of making future provision to ensure such losses are not repeated; and if he will make a statement on the matter.
– Bernard J. Durkan.
 
 
For WRITTEN answer on Tuesday, 23rd September, 2014.
 
Ref No: 35765/14
 
 
REPLY
 
The Minister for Agriculture, Food   and the Marine : (Simon Coveney)

As the Deputy is aware , difficulties relating to the production of young bull b eef in Ireland became prominent towards the end of 2013 and the early months of 2014. Bull beef is not a traditional system in Ireland; our grass fed steer and heifer production systems suit our climate and land availability. Producing quality young bull beef that meets specification requirements for meat factories requires intensive periods of meal feeding and finishing within a short timeframe, thus adding inout costs to the producer.
 
Feedback received by Bord Bia from customers in various Continental markets consistently indicates that they highly value prime steer beef coming from grass-based production systems. Young bull beef is seen as more of a commodity and tends to sell for a lower price. There will continue to be niches, in markets like Italy, where there is demand for a certain amount of young bull beef. However, Irish beef producers should be mindful that this is a specialised market for a restricted carcase specification and that it has become more price competitive in recent years.
It is likely that more farmers will revert to traditional steer beef finishing because Irish steers are a unique selling point for our beef industry that enables us to achieve premium prices for that product. In the domestic cattle market, the relationship between processors and producers is a highly interdependent one. Ultimately, it is the responsibility of both sides working together to manage the type and volume of cattle being brought to market so that the supply chain does not undermine the viability of beef production systems for either winter finishers or suckler farmers. I note that Michael Dowling, in his recent report to the Beef Roundtable, suggested a greater role for contracts in the production of young bulls; this requires further exploration on both sides. It is essential that any farmer considering a move to produce bull beef has a clear signal and understanding from his processor that a market exists for this product.
 
Current market conditions clearly highlight the need for industry operators to improve communication on market trends and signals throughout the supply chain. As the Deputy is aware, I established a Beef Roundtable earlier this year to facilitate such discussions. One such outcome arising from this Roundtable involves better and more timely communication between processors and producers aimed at transmitting early and clearer market signals which bring about more strategically planned sectoral responses. I would encourage the various stakeholders to continue their efforts in that regard.