National Livestock Committee Achievements and Work Done Cattle Prices 2009 was a very difficult year for livestock farmers with cattle prices down an average of 10% (32c/kg or about €112/head). The Global financial crisis and consumer pressure impacted on beef consumption with a move away from higher value steak cuts to lower value mince products. Sterling devaluation and lower EU and international prices also impacted on cattle prices. Despite a 30% sterling devaluation, UK prices fell by 4% in euro terms, French prices were back 8.5% and German prices down 4%. International prices also fell with Brazil down 12%. Throughout 2009, IFA highlighted the major cattle price gap between Ireland, UK and EU cattle prices and applied maximum pressure on processors and retailers to return viable prices to producers. IFA initiated a Beef Industry Development Group with the Meat Industry under the Chairmanship of Paddy Moore to progress quality payments, quality assurance, viable beef prices, price transparency and benchmarking with UK and EU cattle prices. Cattle Prices 2007/2008/2009 €/kg 2007 2008 2009 Steers 2.90 3.35 3.03 Heifers 2.94 3.38 3.09 Cows 2.36 2.84 2.49 Cattle Supplies 2007 2008 2009 Total Disposals 1,981 1,804 1,868 Meat Plants 1,691 1,578 1,508 Live Exports 207 146 285 Local Abattoirs 80 80 75 Live Exports At 285,000 head or a 90% increase, live exports were a real positive factor in the livestock trade in 2009. Calf exports were up 65,000 head and over 30,000 finished cattle were exported to Northern Ireland. IFA defended the live export trade at national and EU level, particularly against unacceptable EU proposals on stocking densities and travel times. IFA worked hard to initiate and develop the live export trade to Great Britain with over 10,000 cattle shipped. Quality Payment System At year end, the beef industry introduced a New Quality Payment System to reward farmers for higher meat yield cattle that meet the desired fat scores. IFA insisted and secured an additional bonus payment of 6c/kg or about €20/head for Quality Assurance and under 30 month cattle. Retail Power IFA tackled the excessive price discounting of the retailers with a campaign including national and local protests. IFA also formulated and presented proposals to Government for a Code of Practice and Supermarket Ombudsman. Markets The main market outlets for Irish beef in 2009 were the UK, Italy, France, Holland and Scandinavia. Brazil IFA maintained maximum pressure on maintaining the restrictions on Brazilian beef imports. IFA highlighted the failure of Brazil to meet EU standards in the 2009 FVO reports and also continued to pursue the issue in the EU Parliament with the aid of MEPs. Suckler Cow Welfare Scheme Over €30m was paid out in SCWS benefits in 2009. A strong IFA campaign protected the scheme against the Bord Snip report and the Budget, with a €40 per cow payment rate for 2009. Single Farm Payment IFA secured a 70% advance of the Single Farm Payment from October 16 th with 120,000 farmers paid over €800m within days. CAP 2013 IFA made a detailed Submission highlighting the importance of preserving and increasing the CAP Budget and protecting the historical basis of the Single Farm Payment to active farmers post 2013. Budget/Government Cuts IFA conducted a very strong campaign against the Government Budget cuts targeting REPS Disadvantage Area Payments and the Suckler cow Welfare Scheme. A number of large protests were held at national and regional level and the most comprehensive and intense local lobbying of Government TDs and Politicians was undertaken throughout the year. Priorities for 2010 Cattle prices - Maintain strong and viable cattle prices through 2010. Secure proper and effective cattle price transparency and benchmarking with UK and EU prices. Quality Payment System Implementing a QPS which rewards farmers for quality and the desired market specification including Quality Assurance. Live Exports Maintain a strong live export trade to maximise price competition and market outlets. Markets Closing the cattle price gap between Irish UK and EU cattle prices by securing better market returns back to producers. Brazil Maintaining maximum pressure on the EU to implement full EU standards on all beef imports. Suckler Cow Welfare Scheme Ensuring the Government honour their commitment to the €250m funding for the SCWS over 5 years. CAP 2013 Ensuring the historical basis of the Single Farm Payment is properly protected for active livestock farmers in the CAP 2013 negotiations. Retail Developing and implementing IFA policy on retailers at national and EU level in 2011. Single Farm Payment Ensuring the full delivery of the SFP to all applicants in the speediest and most effective fashion. Resolving SFP problem cases and minimising inspection problems. Michael Doran Chairman Kevin Kinsella Director of Livestock 14th December 2009