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Development of a Strategic Approach for a Single EU Beef Market
Dunne, Liam O'Connell, John J.
Dunne, Liam
O'Connell, John J.
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2004-12-31
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Dunne, L., O'Connell, J., Development of a Strategic Approach for a Single EU Beef Market, End of Project Report, Teagasc, 2004.
Abstract
The MacSharry reforms of the CAP in 1992 initiated a major EU policy shift from
product price support to a mix of lower prices and increased direct payments (DPs) as
the primary method of supporting the income of cattle farmers. The reduction in the
support price for beef and the introduction of new and increased DPs were phased in
over a three year period up to 1995.
In working paper No. 4 it was shown that cattle farmers in Ireland obtain the lowest
beef prices in the EU but they also obtain the highest DPs per kilo of beef produced.
The DPs are now a major source of revenue for cattle farmers in Ireland. Under the
current system of administering DPs for beef, the value of DPs accruing to the
individual cattle farmer is dependent on the possession of certain types of animals that
are farmed within defined stocking densities.
This paper evaluates how the changes have impacted on the margins for the cattle
enterprise on the farms in the Teagasc, National Farm Survey (NFS) over the five
year period 1993 to 1997. In particular the evaluation focused on:
• the trends in the size of gross and net margins for a range of cattle systems
• the trends in market based margins
• the contribution of DPs to gross and net margins
• the distribution of DPs among different types and size of cattle