Update: Beef Sector Stakeholders – Agriculture 23rd September, 2014

Parliamentary Question No. 252    
   
To ask the Minister for Agriculture, Food and the Marine the extent to which he continues to engage with the various stakeholders in the beef sector with particular reference to the need to address the ongoing issues of peaks and troughs resulting in substantial reduction in income to producers; and if he will make a statement on the matter.
– Bernard J. Durkan.
 
 
For WRITTEN answer on Tuesday, 23rd September, 2014.
 
Ref No: 35763/14
 
 
REPLY
 
The Minister for Agriculture, Food     and the Marine : (Simon Coveney)

I am acutely aware of the pressure being felt by farmers throughout the country as a result of the decline in beef prices over the last 12 months or more. Not only am I aware of it, but I have made addressing the concerns of these farmers a priority for the Government.
 
The deputy is correct in noting that the sector will always be subject to a degree of volatility. This is the same for milk prices, and indeed for cereals. As a country that exports most of what we produce, we are perhaps even more susceptible to the highs and lows of evolving prices than some of our neighbours.
 
This volatility has possibly never been more evident as it has been over the last three years. Prices in 2012 and 2013 rose steadily to an unprecedented peak of over €4.40 per kilo, but have since declined. In looking at these changes, we cannot ignore normal supply and demand factors. This year we have slaughtered nearly 13% more animals than last year and the number of animals slaughtered is 23% higher than at this stage in 2012. Added to this supply increase, there has been a drop in Beef consumption throughout Europe. The combination of these points is clearly taking its toll.
 
Putting structures in place to alleviate the impact of these price changes, and assisting farmers to be better prepared for these fluctuations, have been central to this Government’s term in office. The €1.2 billion per year secured in direct payments each year forms a constant and secure income for farmers, and this is a particularly important buffer as prices decline. In addition, the need to ensure a viable future for the beef sector has been central to the draft €4 billion Rural Development Plan submitted to the EU Commission in July.
 
The RDP includes a number of elements which will be of benefit to Beef farmers throughout the country, including the beef data and genomics measure which will be worth around €49 million per year and should bring about long term improvements to the sector though improving the genetic quality of the beef herd. Also, the continued support under the new agri-enviroment scheme GLAS and the €195 million per year support for disadvantaged areas should all benefit farmers in the event of fluctuating prices in the future.
 
These investment supports, together with the actions emerging of the Beef Round table, should put the sector on the appropriate strategic footing for the future.