Oireachtas Joint and Select Committees

Wednesday, 30 September 2015

Joint Oireachtas Committee on Agriculture, Food and the Marine

Estimates for Public Services 2015: Vote 30 - Department of Agriculture, Food and the Marine

11:00 am

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael) | Oireachtas source

What I am saying is that the biggest driver around the increase in value of food and drinks exports in Ireland has been the premiumisation of product and value added; increased price, in some areas, although there have been decreases in prices in some areas as well; and dramatic increases in volumes. There have been dramatic increases in volume in whiskey, for example. Some 6 million cases of Irish whiskey are now sold. Four or five years ago that figure would probably have been 3 million. They plan to double volume again by 2020 and again by 2030.

It is a mixture across multiple sectors of more volume, more value, more premiumisation, and these factors are helped in some sectors by either currency exchange rates or increased commodity prices globally. We have had the downside of commodity prices too, particularly in the grain sector and obviously this year in terms of dairy. Our expenditure on R&D and innovation is very important In terms of getting a dividend from increased exports. The latest call we had, which was €28 million around research projects, is driving a reputation in Ireland now for innovation in the food and drink sector, which is helpful. That is one of the reasons Kerry Group will open its global food innovation centre tomorrow. When that is fully up and running, it will have 900 people, mostly postgrads, designing the foods of the future, adding value to raw material in Ireland. That is what is driving growth. The supports we spend on Irish family farms to keep them in business through good times and bad are also critical. If we do not have the raw material coming from family farms and if they are not making money out of producing that raw material, then we cannot have the basis for the export growth and value added that we talk about.

In terms of the rural development programme advance payments, there is no issue with direct payments. In regard to advance payments-----

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