URGENT Need for Government and EU to implement measures to support the beef sector – Brendan Smith TD

sucker beef sector image

There is an urgent need for the Government and the EU to implement, without delay, measures to support the livestock sector due to totally inadequate returns to farmers at present.

Below are replies by the Agriculture Minister to my most recent Parliamentary Questions on this critical issue.

For Written Answer on : 13/02/2019
Question Number(s): 154 Question Reference(s): 7206/19
Department: Agriculture, Food and the Marine
Asked by: Brendan Smith T.D.
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QUESTION

To ask the Minister for Agriculture; Food and the Marine the plans he will present to the EU Commission in regard to the need to introduce a package of market supports and direct aid for farmers in view of the difficulties arising from poor prices for livestock; and if he will make a statement on the matter.

REPLY

The agri-food sector is of critical importance to the Irish economy, and its regional spread means it underpins the socio-economic development of rural areas in particular.  Brexit depending on the outcome has the potential to have a very significant impact on farmers and on the agri-food sector.

There are on-going discussions with the Commission regarding the difficulties facing Ireland, and the assistance that might be required for its agriculture food and fishery sectors.

I and my officials have been working very hard for quite some time to sensitise other Member States and the European Commission to the potentially very severe impacts of Brexit on the Irish agri-food and fisheries sectors, and to the likelihood of specific supports being required in order to deal with these impacts. The institutions of the European Union are very well aware of the likelihood of a significant impact of a disorderly Brexit on Ireland’s economy because this has been part of the discussion from the beginning, and indeed this is explicitly recognised in the Commission’s own communication on contingency planning.

Most recently, I held a bilateral meeting with Commissioner Hogan to discuss the potential impact of a disorderly Brexit on the Irish agri-food and fisheries sectors. We discussed the unique exposure of these sectors to the threat of a disorderly Brexit, and the challenges that it could present. I stressed the need to be ready to deploy a range of measures to mitigate the potential impacts on farmers and processors, including through traditional market supports and exceptional aid under the CAP’s Single Common Market Organisation regulation, and increased flexibility under State Aid regulations. Commissioner Hogan reiterated the EU’s readiness to respond and support Ireland, and we will remain in contact on these issues as the situation evolves.

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For Written Answer on : 13/02/2019
Question Number(s): 155 Question Reference(s): 7207/19
Department: Agriculture, Food and the Marine
Asked by: Brendan Smith T.D.
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QUESTION

To ask the Minister for Agriculture; Food and the Marine the additional measures he plans to introduce to enable growth in the live export trade in 2019; and if he will make a statement on the matter.

REPLY

Live exports are a critical part of the infrastructure of our livestock industry.  They play a significant role in stimulating price competition and provide an alternative market outlet for farmers. My Department facilitates this trade, recognising its critical importance to the agri sector, while ensuring that live animal exports meet the highest welfare standards.

In 2017, I reduced the veterinary inspection fee payable on live exports of calves under 3 months of age from €4.80 to €1.20 – this has brought greater equity to the inspection fee regime.

In 2018, live exports of cattle increased by over 30% to 246,000 head compared to the previous year. This change was driven by an increase in exports to other EU countries – particularly calf exports. This growth trend has increased into 2019, with live exports totalling 5,000 in the first four weeks of the year – a 25% increase on the same period in 2018.

The live export market to third countries slowed in 2018 – in large part due to fluctuations in the Turkish Lira. The current restrictions in Turkey seek to reduce the pressure in its own domestic market. My Department will continue to engage with the Turkish authorities in an effort to see the resumption of live cattle trade at the earliest possible opportunity.

New health certificates for the export of cattle to Libya were agreed in November 2018, which increase the range of cattle that can be exported there.  My Department is also engaging with the Egyptian authorities to secure the finalisation of agreement on three proposed health certs for the export of fattening, slaughter and breeding cattle.    In January of this year, my Department reached agreement with Qatar on a health cert for the export of sheep for slaughter.  I have extended an invitation to my Algerian counterpart to visit Ireland in early 2019. This follows earlier contact with Algeria, to try and reach agreement on revised and separate slaughter, fattening and breeding certs.

Despite these many positive developments for live export markets, I am also well aware of the challenges faced by the sector, including transport capacity and lairage capacity at Cherbourg. My Department officials visited Cherbourg in September last year to discuss the capacity issue with French officials and local lairage owners. My officials continue to meet with ferry companies to explore new routes to continental Europe or the potential for carrying livestock on existing routes, and to ensure that the greatest facilitation possible is afforded to livestock exporters in the important Spring period.  The pending approval of a new ferry will contribute to addressing capacity issues.

In 2019  my Department will continue to facilitate growth in live exports, seeking out new markets and facilitating trade by reaching agreement on health certification.

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For Written Answer on : 13/02/2019
Question Number(s): 156 Question Reference(s): 7208/19
Department: Agriculture, Food and the Marine
Asked by: Brendan Smith T.D.
______________________________________________

QUESTION

To ask the Minister for Agriculture; Food and the Marine the plans he will present to the EU Agriculture Commissioner and the EU Trade Commissioner in relation to the need to protect farming interests here regarding negotiations concerning a proposed Mercosur trade deal; and if he will make a statement on the matter.

REPLY

From an Irish perspective, we have been very consistent in urging caution in the EU’s approach to the Mercosur negotiations, which present a very particular threat to the Irish and European beef sectors in particular.

Our position has been reiterated many times, for example by myself and by my colleague, Minister Andrew Doyle, at Council of Agriculture Ministers meetings, and by other Ministers in the relevant EU Trade policy fora. It has also been done through direct contacts with Commissioners Hogan and Malmstroem, and by the Taoiseach at European Council and through his own direct contacts, including with Commission President Jean Claude Juncker and French President Emmanuel Macron. I have also been working closely with Member State colleagues in this regard, and have remained in close contact with Commissioner Hogan on the matter.

With the latest round of negotiations now scheduled for 11-15 March 2019, I and my Department will continue to remain in close contact with the European Commission and with Member State colleagues, in order to reinforce Ireland’s concerns.

In an overall sense there is undoubtedly a need for continued vigilance in relation to the conduct of these trade negotiations, and I will continue to insist that they are handled appropriately, and in a manner that safeguards the interests of the Irish and European beef sector. I also continue to stress that full account must be taken of the findings of the Commission’s own assessment of the cumulative impact of trade deals on the agri food sector, and the potentially very damaging impact of Brexit on an already delicately balanced EU beef market.