December 05, 2003

Funding of Euro 31.4 Million For Ireland's Beef Sector
 

The Ireland Minister for Agriculture and Food, Mr Joe Walsh TD, yesterday announced the distribution of the National Envelope for the beef sector for 2004. The funds available for distribution in 2004 amount to €31.4 million and this is additional to the allocation of €824 million that will be spent next year in supporting beef producers through the various premium schemes.

In distributing the final national envelope prior to the advent of full decoupling in 2005, the Minister decided to continue with the three support measures already in place.

The measures include:  

• a top-up of €10.5m to the slaughter premium for beef breed heifers;
  
  
• a top-up of €10.5m on replacement heifers in the suckler cow herd and;
  
  
• a top-up of €10.4m on dry heifers qualifying for the suckler cow premium up to - a maximum of 15% of the number of qualifying animals.

 Minister Walsh said his objective in the distribution of national envelope funds is to improve the overall quality of the beef-breeding herd. This is in line with the recommendations of the Beef Task Force and the Agri-Food 2010 Action Plan, which had emphasised the need for top quality cattle suitable for the EU market.

The dramatic increase in beef exports this year to EU markets highlights the need to further build on this success in the coming years by placing even more emphasis on the quality of our cattle and beef. The Minister also increased the milk quota threshold for small-scale milk producers participating in the suckler cow premium scheme, from its existing limit of 180,000 litres to 200,000 litres.

With regard to the exemption level for the Special Beef Premium, the Minister decided to reduce the number of animals exempted to 25 while maintaining the existing headage limit of 180 head per holding per age category. The effect of this decision will be to protect small producers who apply for 25 animals or less under both age categories from a reduction in the number of eligible animals if the national quota is exceeded.

The retention of the upper limit on the number of eligible animals will maintain for larger producers the flexibility to apply for premiums on a higher number of animals. The exemption means that some 50,000 herdowners will not be liable for a penalty should an overshoot arise in 2004.

Mr Walsh said that he had made these decisions following consultations with farm and industry organisations. He was satisfied that this discretionary envelope of funding, negotiated by him as part of the Agenda 2000 agreement, was fully utilised, considering the best interests of the beef sector.