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 will be made available on the DAFM website tomorrow morning.

Date Released: 21 July 2015