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Beef Roundtable February 2018
Creed reflects on positive performance in 2017 and prospects for 2018
Minister for Agriculture, Food and the Marine, Michael Creed T.D. today chaired the eleventh meeting of the Beef Roundtable. The meeting reflected on the strong performance of the sector in 2017 and looked forward to the prospects for the sector in 2018.
Reflecting on the strong performance of the sector in 2017, Minister Creed said
“I must acknowledge the efforts of all in the industry who contributed to a successful 2017 which saw a 5% increase in the value of our beef exports to €2.5 billion and a 4% increase in the volume of our exports to 556,000 tonnes.” Minister Creed noted that “It is very encouraging to see the growth in third country beef exports in recent years, in line with the Food Wise focus on market development. The share of beef exports outside the EU has grown from 1.6% in 2013 to 6% last year, representing a significant diversification from our traditional UK and EU markets”
Minister Creed stressed that increasing our share of international markets will be an important part of his work in 2018 with additional trade missions planned during the year in addition to his most recent trip to Turkey last week which focused on live exports. During his trip Minister Creed agreed to the establishment of an official Contact Group involving officials from both the Department and the Turkish Ministry of Agriculture which will allow for better engagement between both Departments on technical issues as they arise.
In relation to the success of this trade Minister Creed stated
“The Turkish market, since it opened for the live export of cattle from Ireland to Turkey in 2016, has now grown to our 3rd largest market for live exports. This is due to a combination of the quality and reputation of weanlings produced by Irish suckler farmers, the valued work of our live exporters and the efforts I have concentrated on since I took office to ensure that as many markets are available for Irish beef, be it in processed form or in live cattle to ensure that Irish primary producers can receive a fair price for their cattle”.
The Minister also provided the Roundtable with an update on progress in relation to Brexit and international trade deals such as Mercosur reassuring all stakeholders of his determination to ensure that best interests of the Irish beef sector are strongly represented.
The Minister also reminded participants of the CAP Post 2020 consultation meetings and emphasised the importance of these to the beef sector, especially in the context of beef farmers’ reliance on direct payments. Minister Creed said
“These meetings and the public consultation process currently running are an importance means by which beef farmers can make informed contributions to the future direction of the CAP”
The Roundtable was provided with an update on 2018 Markets prospects from Bord Bia and presentations on market access and climate change from Department officials.
Continuing the recent trends in Roundtable meetings stakeholder presentations were received from Macra na Feirme, Teagasc and Animal Health Ireland.
Concluding the Minister said
“I am confident that, despite significant challenges, the continued efforts of all stakeholders present at the Roundtable will ensure that the sector continues to further develop over the next number of years and build on the successes of 2017”.
END
Date Released: 06 February 2018
Creed reflects on positive performance in 2017 and prospects for 2018
Minister for Agriculture, Food and the Marine, Michael Creed T.D. today chaired the eleventh meeting of the Beef Roundtable. The meeting reflected on the strong performance of the sector in 2017 and looked forward to the prospects for the sector in 2018.
Reflecting on the strong performance of the sector in 2017, Minister Creed said
“I must acknowledge the efforts of all in the industry who contributed to a successful 2017 which saw a 5% increase in the value of our beef exports to €2.5 billion and a 4% increase in the volume of our exports to 556,000 tonnes.” Minister Creed noted that “It is very encouraging to see the growth in third country beef exports in recent years, in line with the Food Wise focus on market development. The share of beef exports outside the EU has grown from 1.6% in 2013 to 6% last year, representing a significant diversification from our traditional UK and EU markets”
Minister Creed stressed that increasing our share of international markets will be an important part of his work in 2018 with additional trade missions planned during the year in addition to his most recent trip to Turkey last week which focused on live exports. During his trip Minister Creed agreed to the establishment of an official Contact Group involving officials from both the Department and the Turkish Ministry of Agriculture which will allow for better engagement between both Departments on technical issues as they arise.
In relation to the success of this trade Minister Creed stated
“The Turkish market, since it opened for the live export of cattle from Ireland to Turkey in 2016, has now grown to our 3rd largest market for live exports. This is due to a combination of the quality and reputation of weanlings produced by Irish suckler farmers, the valued work of our live exporters and the efforts I have concentrated on since I took office to ensure that as many markets are available for Irish beef, be it in processed form or in live cattle to ensure that Irish primary producers can receive a fair price for their cattle”.
The Minister also provided the Roundtable with an update on progress in relation to Brexit and international trade deals such as Mercosur reassuring all stakeholders of his determination to ensure that best interests of the Irish beef sector are strongly represented.
The Minister also reminded participants of the CAP Post 2020 consultation meetings and emphasised the importance of these to the beef sector, especially in the context of beef farmers’ reliance on direct payments. Minister Creed said
“These meetings and the public consultation process currently running are an importance means by which beef farmers can make informed contributions to the future direction of the CAP”
The Roundtable was provided with an update on 2018 Markets prospects from Bord Bia and presentations on market access and climate change from Department officials.
Continuing the recent trends in Roundtable meetings stakeholder presentations were received from Macra na Feirme, Teagasc and Animal Health Ireland.
Concluding the Minister said
“I am confident that, despite significant challenges, the continued efforts of all stakeholders present at the Roundtable will ensure that the sector continues to further develop over the next number of years and build on the successes of 2017”.
END
Date Released: 06 February 2018
Beef Forum December 2015
Coveney Chairs Seventh Meeting of Beef Roundtable
PRODUCER ORGANISATIONS IN THE BEEF SECTOR TO BE LEGALLY RECOGNISED FOR THE FIRST TIME
The Minister for Agriculture, Food and the Marine, Simon Coveney T.D. today chaired the seventh meeting of the Beef Roundtable and the third one this year. The meeting discussed proposals to recognise Producer Organisations in the Beef Sector, which will give formal recognition to POs for the first time in Ireland, as well as an update on beef markets and upcoming initiatives in animal health. As always the meeting also reviewed the implementation of the Agreement from last November’s Roundtable. Minister Coveney also referred to the recent discussions on climate change and urged stakeholders to adopt a collaborative approach to articulating the very positive contribution being made by agriculture to improving carbon efficiency.
Commenting on the meeting the Minister said “I established the Beef Roundtable in April 2014 in order to improve communications between all stakeholders in the sector. It is only through dialogue and a common focus on the issues which face the sector that will deliver progress required to drive it further. I’m pleased to say that now after seven meetings we have delivered much greater transparency to the sector and have delivered on a number of key targets which even twelve months ago seemed difficult.
Of course we do not have universal agreement on all issues and there will always be new issues to be faced but we have a forum which allows for open and honest discussion between all sides and allows for consideration of trade, climate and other strategic issues impacting on the beef sector in Ireland. It is critically important to maintain this strategic focus, but of course this does not obviate the need for continuing, frequent and open engagement between processors suppliers on market issues”.
On the issue of transparency the Minister said that his Department had introduced significant upgrades to the Department’s Beef Pricewatch App which now allow for price comparisons between factories across five grades of each animal as well as bringing together each week the number and weights of animals slaughtered in each grid category. Commenting on this the Minister said “improving price transparency has been one of the key goals of the Roundtable from the outset and the Beef Pricewatch App has transformed price transparency for sellers of cattle and since its launch earlier this year is averaging over 1,000 hits per week. It has become the price comparison tool of choice for farmers here and marks our beef sector as the most transparent in the EU in terms of price information available. We are constantly reviewing it and the upgrades announced today will make it even more user friendly and add new layers of information to further improve transparency”.
The Roundtable today also received presentations from Bord Bia on the market outlook for the sector and from Animal Health Ireland on its plans for initiatives in beef health. Teagasc also updated on the publication of its production blueprints for farmers since the last meeting of the Roundtable. Commenting on these the Minister said“the input of the State Agencies has been key to the functioning of the Roundtable. I was pleased to note in Bord Bia’s presentation today that prices have continued to remain stable in the second half of this year and that key export markets for both beef and live exports are continuing to take Irish produce in big numbers. The outlook for 2016 is challenging and will require vigilance on all our parts to ensure that it can continue to deliver for the sector. From Animal Health Ireland we received a very timely presentation on their plans for initiatives particularly in tackling IBR. Improving animal health remains a key goal for all of us given its impact on farm profitability.
A major outcome of today’s Roundtable was the confirmation from the Minister that he is to legislate to give formal recognition to Producer Organisations in the beef sector for the first time in Ireland. Producer Organisations are groups of farmers in the same sector who join together to negotiate for improved inputs and outputs for their members. Commenting on this development “the Minister said this has been one of the key outcomes of last November’s roundtable agreement and marks an historic breakthrough for Irish beef farmers who now for the first time will have a legal framework allowing for negotiation directly with factories on price as a group. As we have seen from other sectors, POs can greatly help to rebalance the supply chain by strengthening the hand of producers who will now have a structure for negotiating collectively. They also provide a vehicle for negotiating cheaper inputs as well as acting as knowledge transfer outlets for their members. In addition to legislating for their recognition which I will do before the end of the year I have also committed to funding a network of facilitators who will assist interested farmers in establishing these groups. I will be announcing further details on this early in 2016”.
On the November Roundtable conclusions the Minister said “we had a detailed discussion on the implementation of last November’s agreement. Many of the positive developments have continued to improve the functioning of the sector. Where appropriate I have responded with initiatives in response to the agreement between the stakeholders and today for example I confirmed that my Department is making an adjustment to its AIM system so that the number of farm residencies of each animal is even clearer when presented for slaughter. There were discussions on certain aspects of customer specifications for beef on which there continues to be some disagreement and I urged the parties to remain in contact to try and resolve these market issues. I reminded the processors in particular of their obligation to provide timely notice of changes to market specifications.
In conclusion the Minister said, ”2015 has been a better year for Irish beef, but there is no room for complacency. There will be challenges ahead There have been a number of developments during the year, and the sector has successfully articulated its vision for the future in the Food Wise 2025 Report. We now have a €4bn Rural Development fund for the agri-food sector with benefits for the beef sector through the beef genomics, knowledge transfer, GLAS and Tams for One aspect which Food Wise 2025 pays particular attention to is the opportunities which exist on international markets. We have opened new international markets in five new Countries this year including the US and Canada with trade to China expected to commence next year. It’s also a sector with challenges of course and we discussed today latest developments in the TTIP and Mercosur negotiations on which I am closely engaging with the relevant European Commissioners. All in all I believe we can be very confident that this is a sector with a vibrant future which will continue to deliver for rural Ireland for many years to come”.
Date Released: 17 December 2015
Coveney Chairs Seventh Meeting of Beef Roundtable
PRODUCER ORGANISATIONS IN THE BEEF SECTOR TO BE LEGALLY RECOGNISED FOR THE FIRST TIME
The Minister for Agriculture, Food and the Marine, Simon Coveney T.D. today chaired the seventh meeting of the Beef Roundtable and the third one this year. The meeting discussed proposals to recognise Producer Organisations in the Beef Sector, which will give formal recognition to POs for the first time in Ireland, as well as an update on beef markets and upcoming initiatives in animal health. As always the meeting also reviewed the implementation of the Agreement from last November’s Roundtable. Minister Coveney also referred to the recent discussions on climate change and urged stakeholders to adopt a collaborative approach to articulating the very positive contribution being made by agriculture to improving carbon efficiency.
Commenting on the meeting the Minister said “I established the Beef Roundtable in April 2014 in order to improve communications between all stakeholders in the sector. It is only through dialogue and a common focus on the issues which face the sector that will deliver progress required to drive it further. I’m pleased to say that now after seven meetings we have delivered much greater transparency to the sector and have delivered on a number of key targets which even twelve months ago seemed difficult.
Of course we do not have universal agreement on all issues and there will always be new issues to be faced but we have a forum which allows for open and honest discussion between all sides and allows for consideration of trade, climate and other strategic issues impacting on the beef sector in Ireland. It is critically important to maintain this strategic focus, but of course this does not obviate the need for continuing, frequent and open engagement between processors suppliers on market issues”.
On the issue of transparency the Minister said that his Department had introduced significant upgrades to the Department’s Beef Pricewatch App which now allow for price comparisons between factories across five grades of each animal as well as bringing together each week the number and weights of animals slaughtered in each grid category. Commenting on this the Minister said “improving price transparency has been one of the key goals of the Roundtable from the outset and the Beef Pricewatch App has transformed price transparency for sellers of cattle and since its launch earlier this year is averaging over 1,000 hits per week. It has become the price comparison tool of choice for farmers here and marks our beef sector as the most transparent in the EU in terms of price information available. We are constantly reviewing it and the upgrades announced today will make it even more user friendly and add new layers of information to further improve transparency”.
The Roundtable today also received presentations from Bord Bia on the market outlook for the sector and from Animal Health Ireland on its plans for initiatives in beef health. Teagasc also updated on the publication of its production blueprints for farmers since the last meeting of the Roundtable. Commenting on these the Minister said“the input of the State Agencies has been key to the functioning of the Roundtable. I was pleased to note in Bord Bia’s presentation today that prices have continued to remain stable in the second half of this year and that key export markets for both beef and live exports are continuing to take Irish produce in big numbers. The outlook for 2016 is challenging and will require vigilance on all our parts to ensure that it can continue to deliver for the sector. From Animal Health Ireland we received a very timely presentation on their plans for initiatives particularly in tackling IBR. Improving animal health remains a key goal for all of us given its impact on farm profitability.
A major outcome of today’s Roundtable was the confirmation from the Minister that he is to legislate to give formal recognition to Producer Organisations in the beef sector for the first time in Ireland. Producer Organisations are groups of farmers in the same sector who join together to negotiate for improved inputs and outputs for their members. Commenting on this development “the Minister said this has been one of the key outcomes of last November’s roundtable agreement and marks an historic breakthrough for Irish beef farmers who now for the first time will have a legal framework allowing for negotiation directly with factories on price as a group. As we have seen from other sectors, POs can greatly help to rebalance the supply chain by strengthening the hand of producers who will now have a structure for negotiating collectively. They also provide a vehicle for negotiating cheaper inputs as well as acting as knowledge transfer outlets for their members. In addition to legislating for their recognition which I will do before the end of the year I have also committed to funding a network of facilitators who will assist interested farmers in establishing these groups. I will be announcing further details on this early in 2016”.
On the November Roundtable conclusions the Minister said “we had a detailed discussion on the implementation of last November’s agreement. Many of the positive developments have continued to improve the functioning of the sector. Where appropriate I have responded with initiatives in response to the agreement between the stakeholders and today for example I confirmed that my Department is making an adjustment to its AIM system so that the number of farm residencies of each animal is even clearer when presented for slaughter. There were discussions on certain aspects of customer specifications for beef on which there continues to be some disagreement and I urged the parties to remain in contact to try and resolve these market issues. I reminded the processors in particular of their obligation to provide timely notice of changes to market specifications.
In conclusion the Minister said, ”2015 has been a better year for Irish beef, but there is no room for complacency. There will be challenges ahead There have been a number of developments during the year, and the sector has successfully articulated its vision for the future in the Food Wise 2025 Report. We now have a €4bn Rural Development fund for the agri-food sector with benefits for the beef sector through the beef genomics, knowledge transfer, GLAS and Tams for One aspect which Food Wise 2025 pays particular attention to is the opportunities which exist on international markets. We have opened new international markets in five new Countries this year including the US and Canada with trade to China expected to commence next year. It’s also a sector with challenges of course and we discussed today latest developments in the TTIP and Mercosur negotiations on which I am closely engaging with the relevant European Commissioners. All in all I believe we can be very confident that this is a sector with a vibrant future which will continue to deliver for rural Ireland for many years to come”.
Date Released: 17 December 2015
Beef Forum July 2015
Beef Sector Enjoying Renewed Confidence in 2015
Coveney Encourages Strategic Focus for the Sector Through Implementation of Food Wise Strategy
Minister for Agriculture, Food and the Marine, Simon Coveney T.D, today chaired the second meeting this year of the Beef Roundtable.
Minister Coveney commented “I was pleased to note the steady and improved prices for farmers so far this year and the forecast that this should continue in the coming months. This is a much improved position for the sector compared to the first meeting of the Roundtable in April of last year and I am pleased to note that the confidence which we saw returning to market when we last met in February has continued to grow. In this context, I was pleased to update the Roundtable on the publication of the new “Food Wise 2025” strategy and to thank the many members for their input to its development. The key theme of that Strategy is “local roots – global reach” which has particular resonance for the sector and there are more than forty actions specifically for the beef sector which will help to drive its competitiveness”.
The meeting, the sixth occasion in all that the Roundtable has met, focussed on the ongoing implementation of the outcomes of the November 2014 Roundtable meeting while also receiving updates on the current state of the beef market as well as presentations on the establishment of producer organisations in Ireland. The Roundtable opened with a market presentation from Bord Bia which updated on developments in the first half of 2015 as well as the outlook for the second half of the year.
Teagasc also presented on draft producer guidelines covering all different aspects of beef production and sought the input of Roundtable participants with a view to publishing the guidelines in early Autumn. This builds on previous discussions at the Roundtable and the view that farmers should have clear written guidelines on the economics of different types of beef production particularly those considering the more specialist bull beef production.
The Minister commented that “I very much welcome the comprehensive nature of these drafts and believe that they serve as a very good basis for any farmer no matter which aspect of beef production he or she is engaged in or considering in the future. These draft guidelines highlight yet again that on-farm margins are influenced by a range of factors, both inputs and outputs and it is through effective management of these that farmers will realise greater on-farm profitability. I would encourage all stakeholders to input to these drafts before their publication in September”.
The Roundtable also received a presentation from the Department on progress on development of Producer Organisations which has been a key proposal to emerge from the Roundtable process.
Minister Coveney confirmed that “After detailed and comprehensive stakeholder consultation, I am now moving ahead to provide the necessary legislation to give recognition and legal standing to Producer Organisations in the beef sector for the first time in Ireland. I have always said that these POs are key to rebalancing the supply chain and will give farmers improved negotiating positions on issues which affect their farm margins on both the input and output side. I will now be bringing forward the required provisions in the Autumn together with consideration of possible kick-starter funding to help POs get up and running”.
Concluding the Minister said “the confidence which we saw returning to the sector at our last Roundtable in February was evident today in terms of a strengthened market this year so far. There are still challenges of course and it’s essential that we maintain a strategic focus so as to help to ensure that the long-term viability of the sector is secure and that the sector is sufficiently robust to meet future challenges which will inevitably arise. The publication of the Food Wise Strategy will be crucial in this regard, noting as it does that there is considerable scope for growth in the value of beef output over the next ten years. This is something which I and the Government have always believed to be the case which we have proven with an investment of almost [€70m] this year and over €300m planned investment on suckler farms between now and 2020”.
Note for editors:
The presentations provided to the Roundtable are now available on the DAFM website - please click here
Date released 21/07/15
Beef Sector Enjoying Renewed Confidence in 2015
Coveney Encourages Strategic Focus for the Sector Through Implementation of Food Wise Strategy
Minister for Agriculture, Food and the Marine, Simon Coveney T.D, today chaired the second meeting this year of the Beef Roundtable.
Minister Coveney commented “I was pleased to note the steady and improved prices for farmers so far this year and the forecast that this should continue in the coming months. This is a much improved position for the sector compared to the first meeting of the Roundtable in April of last year and I am pleased to note that the confidence which we saw returning to market when we last met in February has continued to grow. In this context, I was pleased to update the Roundtable on the publication of the new “Food Wise 2025” strategy and to thank the many members for their input to its development. The key theme of that Strategy is “local roots – global reach” which has particular resonance for the sector and there are more than forty actions specifically for the beef sector which will help to drive its competitiveness”.
The meeting, the sixth occasion in all that the Roundtable has met, focussed on the ongoing implementation of the outcomes of the November 2014 Roundtable meeting while also receiving updates on the current state of the beef market as well as presentations on the establishment of producer organisations in Ireland. The Roundtable opened with a market presentation from Bord Bia which updated on developments in the first half of 2015 as well as the outlook for the second half of the year.
Teagasc also presented on draft producer guidelines covering all different aspects of beef production and sought the input of Roundtable participants with a view to publishing the guidelines in early Autumn. This builds on previous discussions at the Roundtable and the view that farmers should have clear written guidelines on the economics of different types of beef production particularly those considering the more specialist bull beef production.
The Minister commented that “I very much welcome the comprehensive nature of these drafts and believe that they serve as a very good basis for any farmer no matter which aspect of beef production he or she is engaged in or considering in the future. These draft guidelines highlight yet again that on-farm margins are influenced by a range of factors, both inputs and outputs and it is through effective management of these that farmers will realise greater on-farm profitability. I would encourage all stakeholders to input to these drafts before their publication in September”.
The Roundtable also received a presentation from the Department on progress on development of Producer Organisations which has been a key proposal to emerge from the Roundtable process.
Minister Coveney confirmed that “After detailed and comprehensive stakeholder consultation, I am now moving ahead to provide the necessary legislation to give recognition and legal standing to Producer Organisations in the beef sector for the first time in Ireland. I have always said that these POs are key to rebalancing the supply chain and will give farmers improved negotiating positions on issues which affect their farm margins on both the input and output side. I will now be bringing forward the required provisions in the Autumn together with consideration of possible kick-starter funding to help POs get up and running”.
Concluding the Minister said “the confidence which we saw returning to the sector at our last Roundtable in February was evident today in terms of a strengthened market this year so far. There are still challenges of course and it’s essential that we maintain a strategic focus so as to help to ensure that the long-term viability of the sector is secure and that the sector is sufficiently robust to meet future challenges which will inevitably arise. The publication of the Food Wise Strategy will be crucial in this regard, noting as it does that there is considerable scope for growth in the value of beef output over the next ten years. This is something which I and the Government have always believed to be the case which we have proven with an investment of almost [€70m] this year and over €300m planned investment on suckler farms between now and 2020”.
Note for editors:
The presentations provided to the Roundtable are now available on the DAFM website - please click here
Date released 21/07/15
Beef Forum November 2014
Agreement details from Department of Agriculture
Coveney secures breakthrough in Beef Talks, Template for Future of the Sector Agreed with all Stakeholders at Beef RoundtableSpeaking after 9 hours of negotiations at the Beef Roundtable, the Minister for Agriculture, Food and the Marine, Simon Coveney T.D. said the outcome of tonight’s discussion was very positive and demonstrated a strong commitment to the beef industry by all of the parties in the forum.
Minister Coveney said, “I’m satisfied that this very comprehensive set of measures, agreed jointly between farmers and processors, represents the best possible outcome from the negotiations. I strongly believe that this is a response which the whole sector can get behind and support. It is time to move on from the difficult relationship which has characterised the sector over the last number of months and get back to focusing on a positive future.
Following lengthy discussions within the Roundtable, Minister Coveney secured the agreement of all stakeholders to a comprehensive list of key actions to address the concerns raised by beef farmers in recent months. The agreed actions include:
Referencing recent correspondence from the Competition and Consumer Protection Commission, Minister Coveney began tonight’s meeting by reiterating that discussion on prices had no place in the Beef Roundtable.
Minister Coveney thanked Mr. Michael Dowling, former Secretary General of the Department of Agriculture, Food and the Marine, for his excellent work in guiding discussions between representatives of farmers and processors over the last two weeks. The bilateral discussions chaired by Mr. Dowling had clarified a number of key concerns on all sides and provided a sound basis on which to resolve outstanding issues with stakeholders.
The Beef Roundtable will continue to oversee the implementation of the agreement and provide a forum for clarifying any issues arising.Minister Coveney concluded that “the benefit of communication across the supply chain has been demonstrated through the Roundtable and improved dialogue must continue to form part of the beef sector. We have made good progress here tonight but our work is not completed. Improving the bargaining power of producers is the next challenge and, in this regard, next year I will be again pushing the Beef forum to deliver, this time through the introduction of Producer Organisations”.
Note to editors
The full list of agreed measures is as follows:
Price Transparency
Agreement details from Department of Agriculture
Coveney secures breakthrough in Beef Talks, Template for Future of the Sector Agreed with all Stakeholders at Beef RoundtableSpeaking after 9 hours of negotiations at the Beef Roundtable, the Minister for Agriculture, Food and the Marine, Simon Coveney T.D. said the outcome of tonight’s discussion was very positive and demonstrated a strong commitment to the beef industry by all of the parties in the forum.
Minister Coveney said, “I’m satisfied that this very comprehensive set of measures, agreed jointly between farmers and processors, represents the best possible outcome from the negotiations. I strongly believe that this is a response which the whole sector can get behind and support. It is time to move on from the difficult relationship which has characterised the sector over the last number of months and get back to focusing on a positive future.
Following lengthy discussions within the Roundtable, Minister Coveney secured the agreement of all stakeholders to a comprehensive list of key actions to address the concerns raised by beef farmers in recent months. The agreed actions include:
- Weight Specifications – no price penalties based on weight up to 31st December 2015.
- Age Specifications – engagement with the retail sector and third country markets with the objective of increasing age specification for premium beef from 30 to 36 months.
- Quality Payment System (QPS) – no dual base pricing for breed, age or weight
- Quality Payment System – Review of current QPS by the middle of 2015
- Quality Assurance – processors to provide a price incentive for all steers and heifers from Quality Assured farms with effect from 1st January 2015
- Farm movements – clarification and harmonisation of the system for counting the number of farm residencies for determining eligibility for the QPS in-spec bonus. Any barriers to movement through marts will also be examined.
- Price Transparency – new market index to be developed based on the different beef categories on the main markets served by Irish product
- Price Transparency – harmonised remittance document for farmers showing base price, bonuses and any other factors contributing to final price.
Referencing recent correspondence from the Competition and Consumer Protection Commission, Minister Coveney began tonight’s meeting by reiterating that discussion on prices had no place in the Beef Roundtable.
Minister Coveney thanked Mr. Michael Dowling, former Secretary General of the Department of Agriculture, Food and the Marine, for his excellent work in guiding discussions between representatives of farmers and processors over the last two weeks. The bilateral discussions chaired by Mr. Dowling had clarified a number of key concerns on all sides and provided a sound basis on which to resolve outstanding issues with stakeholders.
The Beef Roundtable will continue to oversee the implementation of the agreement and provide a forum for clarifying any issues arising.Minister Coveney concluded that “the benefit of communication across the supply chain has been demonstrated through the Roundtable and improved dialogue must continue to form part of the beef sector. We have made good progress here tonight but our work is not completed. Improving the bargaining power of producers is the next challenge and, in this regard, next year I will be again pushing the Beef forum to deliver, this time through the introduction of Producer Organisations”.
Note to editors
The full list of agreed measures is as follows:
Price Transparency
- The Department of Agriculture, Food and the Marine will continue to publish its Beef Pricewatch app and keep the format and content under review, with a view to maximising price transparency for farmers;
- The current Statutory Price Reporting System based on the R 3 steer is the accepted system for cattle price comparisons across the EU.
- Meat Industry Ireland will work with Bord Bia, other agencies and farm organisations to develop a market index, based on the different beef categories on the main markets and channels served by Irish product, with a view to developing a clear understanding of the market place.
- Meat Industry Ireland will work with its members to develop a harmonised remittance docket for farmers showing base price, bonuses and any factors contributing to the final price paid in a clear and transparent manner within three months.
- Individual meat processors will pro-actively communicate price signals and market requirements to suppliers as early and as transparently as possible.
- Processors will agree not to impose any price penalties on any animals based on weight up to 31st December 2015. Farmers presenting heavier stock should provide adequate notice to processing plants.
- In the meantime Teagasc, ICBF and Bord Bia will examine the implications of weight specifications for the profitable production of grass fed beef, particularly for the suckler herd, having regard to market requirements and economic returns for farmers.
- Processors and Bord Bia will engage with customers and DAFM will engage as soon as possible with competent authorities in third country markets, with a view to increasing the age specification for premium beef from 30 to 36 months, and report back to the next forum on progress.
- Teagasc, ICBF, Bord Bia, and farm organisations will look at the economics of producing beef sustainably to these age specifications, taking into account factors such as the potential market advantage of grass fed beef and the implications for the grass based system of a 30 month finishing age.
- The industry and Bord Bia will engage with customers with a view to securing flexibility on the number of movements and length of residency and in this regard to remove any barriers to the movement of cattle through marts pre slaughter and ensure the full payment of the QPS bonus to qualifying animals. There will be a progress report to the first forum in the New Year.
- Processors will harmonise the system for counting the four farm residencies for the purposes of determining eligibility for the QPS In spec bonus, to be agreed at the forum;
- The Department will make any necessary adjustments to its AIM system for this purpose, consistent with statutory and traceability requirements.
- Processors agree that there will be no dual base pricing for steers and heifers in individual processing plants, by breed, age or weight or Quality Assurance status.
- The QPS system will be reviewed, with the assistance of Teagasc, with a view, in particular, to providing a more simple and transparent system, before the middle of 2015.
- Processors agree to a targeted, cost neutral price incentive for all steers and heifers from Quality Assured farms with effect from 1st January, based on consideration of an appropriate mechanism to be agreed by then.
- Immediate engagement under the aegis of the forum will follow to ensure progress in this regard.
- Individual processors will work closely with their supplier base to increase the use of contracts for suppliers, in particular for winter finishers, to provide greater security for the producers of these animals and assurance to processors in relation to supply
- DAFM will continue to support and facilitate live exports by inspecting and approving vessels presenting for inspection for the purposes of transporting live animals overseas;
- DAFM will continue to work to remove any barriers to the traditional trade for fattening and slaughter with Northern Ireland Authorities and UK retailers.
- All participants in the Round Table endorsed the development of Producer Organisations in the beef sector to re balance negotiating power along the supply chain and to provide greater supply assurance to processors, conscious of the importance of existing market organisations. Having received written submissions, DAFM will work with stakeholders to develop proposals for their recognition in accordance with the provisions of the common Market Organisation Regulation, having regard to the concerns of stakeholders.
- The Department will strengthen controls around trim in meat plants in accordance with EU Regulations.
- The forum recognises the importance of the bull beef market, and will examine all issues relating to bull beef production systems and market demands at its next meeting in January 2015. In that context, any agreed changes in specifications or QA pricing incentives will be adopted without undue delay.
- The forum will continue to operate and to monitor the implementation of this agreement, deal with any issues arising and ensure that it is fully complied with.
