Over recent years, the beef farmers in this country have been under enormous stress and pressure, with consistently falling incomes coupled with higher costs annually. Fundamentally, looking back and looking at it from a distance, one could say the primary producer has been increasingly marginalised in the sector overall. The Government and beef industry itself have reacted far too late to what has been a growing and deepening crisis for many beef farmers. That belated response has contributed to the crisis itself but also to the difficulty in resolving it.

The National Ploughing Championships commenced today. This is an event that showcases the very best of Irish agriculture and farming but it is against the backdrop of the severest crisis facing the beef sector in many years. It is fair to say that the crisis has been exacerbated by the Brexit situation. The signing and endorsement by the Government and former Commissioner for Agriculture and Rural Development, Mr. Phil Hogan, of the Mercosur beef deal further enraged beef farmers at a particularly difficult time. Thousands of workers have been laid off, with very negative consequences for the economies in the towns in question and the hinterlands of the factories.

Last March, Fianna Fáil constructively tabled a Private Members' motion calling for progressive action to be taken on fair prices, the 30-month age restriction, the four-movement rule, weight restrictions on cattle, 70 days' residency and transparency in the beef supply chain. We have been calling for a food ombudsman for quite a long time. It is interesting that many of the elements called for are now contained in the agreement signed this week but it has taken this long to have some significant movement on these issues. The Government did not act urgently enough on the motion. We had during the local elections an electorally engineered scheme involving the former Commissioner, Mr. Hogan, and the Government but we learned subsequently that there were many caveats and conditions attached to the BEAM initiative, resulting in many small farmers, in particular, not applying, because it involves a reduction in livestock.

Negotiations this week have resulted in an agreement, signed by the representative bodies of the farming sector. This has not yet translated to the picket line and the blockades have not been lifted. This reflects a lack of trust, a level of frustration among farmers and a breakdown in relationships between all in the sector.

We welcome the agreement. We believe space should be given to the various farm organisations to discuss, advocate and vote for the deal. Speedy implementation has to occur.

I put it to the Taoiseach, however, that the Government should still seek further Common Agricultural Policy market disturbance aid for losses incurred since May. It should avail of all avenues to increase the live export trade; the Government has also been tardy on that front. It should also work towards the introduction of a €200 suckler cow payment in the next CAP. The Government should reject the Mercosur deal, which will undermine EU climate change policy. Will the Taoiseach agree to those measures? Does he accept that a comprehensive range of measures has to be taken to ensure a sustainable future for beef farming in this country?

I welcome the Ceann Comhairle, all the Members of the House, the Press Gallery, and the staff of Leinster House back for what will be an eventful session. We have much to do.

On the Deputy's question, I acknowledge the extraordinarily difficult times beef farmers are facing. For more than a year, prices paid to beef farmers at the factory gate have been very low at approximately €3.50 per kilogram, which is less than the cost of production. Many farmers are at their wits' end because these prices have persisted for so long. There are many reasons that prices are low. Consumption and demand are flat, production is up, and sterling is weak. The price that Irish farmers get, however, is roughly the European average. It is set by the market, not by the Government or anyone in this House. It is largely a function of supply and demand.

The Government is certainly trying to help and has done a lot to assist farmers in the last year or so. For example, it is opening new markets in China and across Asia. There has been a 60% increase in Bord Bia's budget to open new markets around the world to Irish beef. Some €40 million was provided in the last budget for areas of natural constraint payments and for the beef environmental programme. In recent weeks, €100 million was made available to support farm incomes. Approximately €80 million of that €100 million has been allocated. There is still €20 million available. These are very significant supports. They are much greater than the supports that would be offered to any other loss-making sector. They have been provided for a reason, however, which is that we care about family farms, the livelihoods of our beef farmers and the future of the beef industry and its wider value to the rural economy.

Producer organisations have now been recognised for the first time. This could potentially change things significantly. At the moment farmers are price takers. The establishment of producer organisations for the first time allows farmers to come together as a group to negotiate proper contracts and proper prices with the factories. That can and should help to increase the prices paid to farmers but it must be allowed time to operate and function.

On the questions the Deputy raised, the Common Agricultural Policy will be reformed as part of the new EU budget. It is the position of the Irish Government that the CAP budget should be protected in full. We do not agree with, nor will we accept, the 5% cut proposed by the European Commission. If we are to convince European taxpayers and our European partners to defend and protect the CAP budget, however, the CAP will need to be reformed and modernised to take account of matters such as the environment and animal welfare, even more so than it does at the moment.

The Mercosur agreement is not yet signed. That is not correct. That deal may be put to member states for ratification in approximately two years' time. As I have said before, we will not support a trade agreement that damages the environment or exposes our industry to unfair competition.

I again make the point that much of what was contained in Fianna Fáil's Private Members' motion early this year has now found its way into the agreement that was discussed this week. It seems that a lot of time was lost and a lot of resentment and frustration was allowed to build up within the beef farming sector before people got down to work and began to engage. That is a great pity because fundamentally it is a question of fair prices. I believe in food security. I also believe that a country like Ireland needs to retain key sectors such as the beef sector, have a diversity of food supply in our country and contribute to Europe. I fundamentally believe that. To ensure that happens, however, a greater weight has to be given to the primary producer. The role of the primary producer has been eroded for some time now.

That issue is at the heart of this crisis and needs to be redressed. Some of the agreement's proposals have merit, but they could have been initiated well over one or two years ago, for example, those relating to the task force, the price index and so on. These are measures for which we have been advocating for quite some time-----

I thank the Deputy, but his time is up.

-----but that have taken this crisis to develop in response.

In the context of Mercosur, when I used the phrase "sign off", I did not mean literally signed off. I was in the Chamber when the Minister, Deputy Bruton, essentially endorsed it.

And the current Minister, Deputy Humphreys.

In particular, Commissioner Hogan endorsed it. Regarding the €100 million scheme that the Taoiseach mentioned, no one told small beef farmers in the middle of the local elections that it would involve reducing livestock-----

The Deputy is way over time.

-----and that one would have to engineer a 25% reduction in one's stock were one to apply to and gain from the scheme. That is the problem. Will the Taoiseach confirm whether it is the Government's intention to seek further support from Europe along the lines of the exceptional aid scheme because of the market disturbance that has occurred and the very low beef prices that farmers are getting for their cattle?

Mercosur at the moment is only at the level of a political agreement, and that political agreement was signed off on not just by the entire Commission, but in particular by Commissioner Malmström from Fianna Fáil's own political family who is the Trade Commissioner. In two years' time when there is a legal agreement, we will be in a position to assess it and take a position on it then, but I have said before that we will always defend the interests of Irish industry and Irish farmers when it comes to any trade agreement.

We have secured €100 million in income support for farmers - €50 million coming from the Exchequer and €50 million coming from the European Commission. As of now, only €80 million of that €100 million has been drawn down. Yes, we can certainly give consideration to a further request, but that has to come at the appropriate time, and that €100 million has yet to be fully drawn down.

In respect of the protest and the blockades, the Minister, Deputy Creed, convened talks. Those talks were successful in coming to an agreement.

Too little, too late.

Six farm organisations representing the vast majority of farmers in the State have endorsed that agreement. The protestors were successful in highlighting the issues affecting beef farmers, they did bring the industry to the table, but all that can be achieved from protests and blockades has now been achieved. I would ask that they end now-----

But they work.

-----and that people try to make this agreement work because I am deeply concerned. I think everyone in this House who cares about the beef industry, who cares about rural Ireland, who cares about employment-----

The Taoiseach knows a lot about rural Ireland, all right.

Tell people to eat more beef.

-----is concerned that continued protests-----

You are the Taoiseach of Dublin.

You told people to eat less beef.

Deputies, please.

-----and continued blockades will lead to more job losses.

There is no need to remind us.

There have been 3,500 job losses already. There is a risk that meat plants and meat factories may close permanently. This could do long-term, irrevocable damage to the industry. I do not think anyone in this House wants that.

I call Deputy McDonald.

The Taoiseach's own party colleagues have been whipping the issue up on the picket lines.

Please, can we have order for Deputy McDonald?

The farmers who continue to protest and picket outside meat processing factories are fighting for their livelihoods and for the future of the family farm. The Taoiseach's words will offer them little hope and comfort. In the midst of the figures that he rattled off, he did not mention, even though he should have, that many beef farmers made less than €10,000 per year. Despite doing most of the work, farmers only receive approximately 20% of the sale price of beef. As the Taoiseach set out, the current price for a kilo of beef is €3.45. That is below the break-even point. Brexit looms, and the reality is that beef farmers are struggling for their very survival. That is why there are pickets on the gate. Many see this campaign as their last stand before their livelihoods are gone forever.

This crisis did not come out of the blue. It has been taking shape for decades. This dispute is the direct result of corporate greed and the inequalities that have long existed in the market. Farmers are price takers, not price makers. Prices are decided by a very small and powerful group of people, which is something that does not feel, look or smell right. Fairness and fair play do not exist in this market or in the experience of beef farmers. As a result, the industry is on the brink.

While the livelihood of beef farmers is being ruined, thousands of factory workers have been laid off. Only this morning, we heard of 350 temporary lay-offs at a plant in Cahir, County Tipperary.

Much like the struggling farmers, these workers have bills to pay and children to feed and the loss of their pay cheques is absolutely devastating. Farmers do not want to be on the picket line, they want to be farming. Factory workers want to be back at work, earning a living. However, that is not going to happen unless the principle of fair play is brought to bear.

I acknowledge that the two rounds of talks so far have delivered some progress regarding bonus payments and a grid review. However, the core issue of the base price being offered to farmers remains. There is a solution in that regard. The way to bring this dispute to an end is for the highly profitable meat factories to agree a base price increase with farmers. It seems clear that the Minister for Agriculture, Food and the Marine, Deputy Creed, must convene a new round of talks at which farming organisations and processors can discuss this increase in base price. It is also clear that supports must be offered to the workers who have been laid off. Does the Taoiseach agree that meat processors should sit down again with farmers and agree an increased base price? Will the Minister convene a new round of talks to facilitate such a negotiation and agreement?

I pointed out earlier that the price Irish farmers receive for beef at the factory gate is roughly the same as that received by European farmers at factory gates all across Europe. The average price is roughly the same across Europe and it is lower elsewhere. Commodity prices often work that way because they are set by the market as a function of supply and demand. However, that price is too low. It is well below the cost of production for farmers and that is the underlying problem that has given rise to this dispute and these difficulties.

The Minister has acted. He convened and chaired talks and secured an agreement that will bring about greater transparency, higher premiums, ensure that no legal action will be taken against protestors and that any existing legal action will be removed. The establishment and recognition of producer organisations is now permitted and that is crucial because it will allow farmers to band together and negotiate with meat factories for a proper contract and price. That is what needs to happen next. The agreement reached has been endorsed by the Minister, the meat industry and the six farming organisations that represent the vast majority of farmers. I welcome the fact that the Leader of the Opposition, Deputy Micheál Martin, and Fianna Fáil have endorsed the agreement. I did not hear Sinn Féin endorse the agreement. I hope it will do so because if Sinn Féin wants the 3,500 workers who Deputy McDonald mentioned to get back to work, the factories need to reopen.

It is more than that.

There are 6,000 workers.

There are 6,000 workers.

If Sinn Féin wants beef and sheep farmers to be able to get their animals to the factories in order to get any payment at all, the agreement should be supported by all of us in this House. I ask Sinn Féin to support it.

That is a very disappointing response. It matters not a whit whether Deputy Micheál Martin, the Taoiseach or anyone else in the House endorses this agreement if it is not sellable and does not work for the farmers who are out on the picket lines. That is what matters. I am disappointed that the Taoiseach would try to use this issue to provoke a party-political fracas. It is not appropriate. Some 6,000 workers have been temporarily laid off and they want to get back to work.

The Taoiseach described all that has been achieved in the negotiations to date. I acknowledged that progress has been made in my initial remarks. However, the issue of the base price has not been addressed. There is no point in telling farmers that they can act collectively and, at some point in the future, achieve a price increase. They need it now. I was on a picket line in County Cavan with farmers who told me that this is either sorted now or they will not be in business next year. Pushing this issue down the pipe is not going to work.

It is unedifying for the Taoiseach to issue a threat to farmers to the effect that they must go with this agreement or get nothing. That is not the way to resolve this matter and, with all due respect to the Minister, neither is posting an open letter on Facebook. We need a new round of talks.

We need rationality, common sense, goodwill and respect for farmers and workers. All of this can be done but it will only be done through a new round of talks.

We have had two rounds of talks. Those talks concluded this weekend with an agreement endorsed by the Minister, the meat industry and the six farm organisations representing the vast majority of farmers in this country. That is where we are today. The base price, as I explained earlier, is roughly the same across Europe. It is a market price, largely a function of supply and demand. There is no legal way to fix a price. That is not how it is done. It is not legal to do that. What is possible though is for farmers to join producer organisations which can then negotiate a price and proper contracts with the meat factories-----

There will not be any.

-----in the same way any producer negotiates a price with a potential buyer. That is the way it is done but that cannot be done at the moment when the factories are not operating. The factories need to be allowed to reopen. The producer organisations need to be allowed to negotiate contracts and prices. The figure I have is 3,500 - it may well be higher by now - but as many as 8,000 people could lose their jobs as a consequence of these protests and blockades. Those people need to be enabled to get back to work.