Collapse in beef prices
Éamon Ó Cuív raises the 20% fall in beef prices, reduced farmer incomes, labelling and slaughter-rule problems, and alleged processor manipulation. Pat Rabbitte acknowledges an immediate beef-sector difficulty but defends the Government’s wider agricultural record and Minister Coveney’s efforts.
Before the Minister, Deputy Pat Rabbitte, arrived in the Chamber, I thought we were going to be left, for the second time today, with a Minister of State instead of a Minister. At Question Time this morning-----
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I am aware of that. This morning we had the last Question Time involving questions to the Minister for Agriculture, Food and the Marine before the summer recess, but the Minister was not here. It is very significant that this happened-----
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This is Leaders' Questions. We are not talking about whether or not Ministers were in the Chamber earlier. Leaders' Questions is an opportunity for the Deputy to raise a serious topical issue.
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This is a very serious topical issue.
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The issue I wish to raise is the collapse in beef prices, a serious issue for the 80,000 dry stock farmers in this country. Prices are down 20% since last year, with farmers now getting €200 to €300 less per head. This is happening because of labelling issues that have not been dealt with by the Minister, the new slaughter criteria that were introduced and price manipulation by processors. What does the Government intend to do about it, other than setting up talk shops and fora to produce reports? When does the Minister intend to sit down with his Northern Ireland counterpart, the Minister of Agriculture and Rural Development, Michelle O'Neill, and the British Secretary of State for Environment, Food and Rural Affairs to resolve the labelling issue? Irish beef is sold off the shelves in Britain at the same price as British beef but there is a huge difficulty in selling cattle from this jurisdiction into the North. What action, rather than talk, will the Government take to deal with this crisis, which is affecting so many families across the country and is pushing farmers over the edge?
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As the Deputy knows, having come through an extremely difficult period of recession in the past six years, it has, more recently, been an especially good time for farming and agriculture generally in this country. The Deputy is absolutely correct that there is an immediate problem in the beef sector, and he understands the reasons for it, particularly in respect of bull beef. He also understands that far from the allegation that the Minister for Agriculture, Food and the Marine is not attending to the matter, he is, in fact, actively working to address it. The Minister has, for instance, allocated more funding to Bord Bia to see what that agency can do to continue to promote Irish beef. In regard to the situation in the North, the Deputy is aware that the Minister has regular contact with his opposite number, Michelle O'Neill. In fact, I understand a meeting of the North-South Ministerial Council will take place tomorrow week. The Deputy is further aware that the Minister has just returned from a ministerial meeting in Luxembourg where he had discussions arising from this issue.
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The Minister, Deputy Rabbitte, should ask farmers whether they are having an especially good time. In fact, as we speak, the Irish Farmers Association is conducting a protest - the second in recent weeks - outside the office of the Minister, Deputy Coveney. Those farmers are deeply unhappy with his performance. The Minister, Deputy Rabbitte, can say what he wants in this House but he is not fooling the people. Direct payments to farmers have decreased by 10% in the past three years. It is not a particularly good time for farmers.
I asked the Minister what specifically the Minister, Deputy Coveney, is doing on the labelling issue. The problem is that cattle reared here and finished in the North are now considered to be nomadic cattle, neither Irish nor British. This is causing a huge problem because supermarkets are not buying beef unless it is reared and slaughtered in the same country. It is time the three Ministers got together and resolved the issue. There was always a trade between the two parts of this island - indeed, it would be extraordinary if there was not - with large numbers of cattle, particularly on the west coast, taken to the North for slaughter. The person sitting beside the Minister, Deputy Rabbitte, will be able to tell him exactly how this issue is affecting farmers seeking to sell their cattle.
Will the Minister indicate what the Government is doing to deal with the labelling issue? Second, when will the legislation on the producer organisations be brought to the House by the Minister, Deputy Coveney? That legislation would be a major help to beef producers, livestock producers in general and liquid milk producers who need producer organisations to be allowed legally to protect their interests.
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It seems to me that the difficulty as to whether a beast is Irish or Northern Irish has its roots deep in Irish history. For the Deputy to say that, relatively speaking, it has not been a good time for Irish farming is simply incorrect. Ever since we held the Presidency of the European Union, when the Minister, Deputy Coveney, used that opportunity to bring the budgetary situation and reform of the Common Agricultural Policy to a conclusion, it has been a very positive period for agriculture in this country. There is a particular problem, as I have conceded, in the matter of beef, including a labelling issue. In Spain, for example, it has been possible to come together under a single label to promote Irish beef. It is a question of getting the producers to come together here. The Minister is actively attending to the issue and actively engaging with his opposite number in Northern Ireland. If it were as simple as the Deputy suggests, it would already have been resolved. The Minister intends to bring the matter to a conclusion, but the market conditions for beef have changed. That is an aspect of this problem that cannot be changed by any magic wand.