Question
What steps he will take to ensure that smaller beef producers are not made bankrupt by the present BSE eradication arrangements; and what assessment he has made of the extent to which beef producers are making a loss when steers are marketed. - Includes figure. (Holding answer 22 July 1996).
Answer
Mr. Hardy: To ask the Minister of Agriculture, Fisheries and Food what steps he will take to ensure that smaller beef producers are not made bankrupt by the present BSE eradication arrangements; and what assessment he has made of the extent to which beef producers are making a loss when steers are marketed. [38096] Mr. Baldry: [holding answer 22 July 1996]: I am fully aware that current market prices for all beef cattle are substantially lower than those at the same time last year and am conscious of the enormous strain this has put on beef producers. The Government agreed a package of addition support measures for beef producers at the June Agriculture Council worth some £110 million in the UK. Most of the money, some £81 million, is being paid as supplements under the beef premium schemes. A large proportion of the income of beef producers comes from suckler, cow premium, beef special premium and HLCA payments. Increases in these payments are therefore reducing the impact of lower cattle prices on producers incomes. Over 90 per cent. of claimants will have already received their supplements. The remainder will be paid by early October. The Government have also arranged for beef producers to receive 80 per cent. rather than the normal 60 per cent. rate of advance payments under the beef premium schemes from 1 November. This should ensure additional funds are in the pockets of beef producers in the crucial autumn period. In addition, some £29 million has been made available under the 1996 beef marketing payment scheme. This money is being distributed to beef producers according to the number of adult clean cattle--including steers, heifers and young bulls--sold in the period 20 March to 30 June (inclusive) for slaughter for human consumption. The application period for this scheme closed on 23 August and payment will be at a flat rate of £66.76 per eligible animal. The first payments under this scheme began earlier this month and it is hoped they will be completed by 15 October. While the measures that I have outlined should relieve some of the financial pressures currently facing the beef industry, they are not designed as compensation for the fall in market prices. They are market support measures designed to ensure the survival of the industry. In the longer term, we would hope that as public confidence increases and the market adjusts to the situation, the incomes of beef producers will gradually recover.