To ask the Minister of Agriculture and Rural Development for her assessment of the impact on farm businesses of red meat market price differentials between Northern Ireland and Great Britain.

The beef and sheep sectors are extremely important to our agri-food industry and our wider economy.

I have consistently stated that I want to see a strong, profitable red meat sector here and that this will only be achieved if farmers see a fair return for their high quality, traceable produce.

I understand farmer concerns about the difference in the price they receive for their high quality beef and sheep meat, compared to their counterparts in England, Scotland and Wales. Very recently, the UFU has indicated that the beef price differential is costing our beef industry as much as £17 million each year.

Many factors affect the price our beef and sheep farmers receive. The 2013 Livestock and Meat Commission (LMC) study, which examined the beef price differential, identified transport costs to Britain, cheaper supply available from the south and seasonality of production (usually with an over-supply in the autumn) as the main causes. Other factors influencing the prices include the structure of finishing, adherence to specifications and higher processing costs in the north.

In relation to the sheep price differential it is worth noting that various dressing specifications are utilised by abattoirs throughout Britain, making price comparisons difficult.

I therefore welcome the recent report of the EFRA Parliamentary Committee on Farmgate prices which highlighted the price differential and its call for retailers to justify the reasoning behind the disparity in prices being paid in the north. I have asked my officials to monitor developments on this report carefully.

Obviously my Department does not set beef prices but where we can make a difference, I am keen to take steps. My officials have discussed these matters with representatives of the Ulster Farmers Union in recent weeks and are taking a fresh look at the LMC report.

We are also making progress on a number of important fronts to support a more efficient, sustainable and profitable red meat industry. These include opening access to new markets in Canada, Australia, the US and Philippines and support for knowledge transfer, innovation and cooperation and capital investment through the Farm Business Improvement Scheme.

Furthermore, I will continue to do whatever I can to encourage fairness and transparency in the supply chain. You will be aware I have tasked the Agri-Food Strategy Board with establishing the Supply Chain Forum to examine how to improve the longer term sustainability of the local agri-food supply chain through enhanced communication and collaboration. The Forum, which is due to meet again in early 2016, will play a key role bringing together all elements of the supply chain together to enhance the competitiveness and profitability of the sector.