Producer Organisations in the Irish Beef Sector Beef Roundtable – July 2015 Colm Hayes

Activity to Date. Endorsement by Roundtable in November to develop POs in the beef sector Public Consultation Exercise after November 2014 Roundtable DAFM follow-up bilateral meetings with Farm Orgs, ICOS, MII, existing POs in the beef and lamb sector Update provided to February 2015 Roundtable DAFM delegation visit to France to meet French beef POs in April 2015

DAFM Role Draft Statutory Instrument to give legal recognition to POs Receive and adjudicate on requests to form Producer Organisations within 4 months of lodging. Carry out checks to verify that recognised POs are complying with the regulations. Inform the European Commission of all decisions to grant, refuse or withdraw recognition.

Core Principles of POs The Statutory Instrument that DAFM will publish will set out: 1.What an active beef farmer is for the purposes of entry into producer organisations. 2.The minimum number of members a producer organisation needs to have. 3.The legal requirements from Regulation 1308/2013 that producer organisations must satisfy (governance, legal structures,activities) DAFM are currently considering the following for Irish beef POs Minimum of [50] members with a yearly minimum contribution of [500] head of cattle A minimum 75% of cattle commitment is necessary for PO cohesion. Feedback from existing POs indicated this was important to the success of the groups.

Requirements for negotiation of contracts DG Competition drafting guidelines for POs negotiating contracts and additional rules in Article 170. POs must satisfy itself that it generates significant efficiencies through undertaking activities not directly related to sale of produce, as set out in Article 170 i.e. (i) joint distribution, including joint selling platform or joint transportation; (ii) joint promotion; (iii) joint organising of quality control; (iv) joint use of equipment or storage facilities; (v) joint management of waste directly related to the production of live cattle; (vi) joint procurement of inputs;

Recommendations/best practice guidelines POs could benefit from drawing upon local systems already in place for negotiating sales and individuals who have technical knowledge of negotiations and contracts to conduct business with factories. POs don’t only have to be for beef, could also be for other enterprises such as live exports. Successful POs negotiate for inputs, veterinary fees, feed etc. This action also covers the PO for its additional activity under Article 170.

Possible DAFM Funding Options POs must agree their fee structure at the outset Possible DAFM/RDP assistance: Under Measure 2 (Advisory Services) of the RDP, a group of facilitators can be employed to assist POs. The facilitators would advise on business plans, negotiation practices, best governance, promotion activities etc. DAFM would hold a competitive tender to provide the service. Facilitators would also be available to existing groups to advise on business plans, expansion, possible efficiencies etc. Start-up grant funding for the POs to help them get up and running

Next Steps DAFM to commence drafting of SI and re-engage with stakeholders on key issues SI to be published before end-2015 DAFM to examine possible options for start-up funding of the POs

Thank You.