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It is now urgent that the Government undertakes a concerted push to get EU agreement on special measures to underpin the beef sector, Irish Cattle and Sheep Association (ICSA) beef chair Edmund Graham has said.
The key issue is to find a temporary home for beef exports normally destined for the UK market
“The key issue is to find a temporary home for beef exports normally destined for the UK market, in the event of a no-deal Brexit.
“The only realistic short-term solution is a targeted intervention or aids to private storage scheme to apply where a member state is severely and uniquely impacted by Brexit,” he said.
Reassurance
While European Commissioner for Agriculture Phil Hogan has sought to reassure farmers that the EU stands ready to help Irish and EU farmers in the event of a hard Brexit, the details remain unclear.
“The situation is precarious for beef farmers given the level of investment they have already put into their stock and now face the prospect of a wipe-out," said Graham.
"A special package to buy displaced Irish beef into emergency private storage or intervention is the minimum required.
“This is not just in Ireland's interest, it is also essential to avoid catastrophic disruption of the entire EU beef market.”
Trigger price
Graham said that a realistic trigger price needs to be set and that it has to be targeted specifically for a Brexit fall-out.
“At present, the price support instruments of intervention or private storage are too blunt and of no use for the beef sector.
"The scheme can only kick in when the price of beef falls below 85% of an EU reference point that is set far too low and needs to be adjusted.
“Dairy reference prices are set at levels which mean that they can sometimes help the dairy sector, but the beef levels are currently not fit for purpose.
“The potential to allow flexibility under state aid rules must also be explored,” he said.
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