Oireachtas Joint and Select Committees

Wednesday, 8 March 2023

Joint Oireachtas Committee on Agriculture, Food and the Marine

Development of Sheep Sector: Discussion

Photo of Paul DalyPaul Daly (Fianna Fail) | Oireachtas source

I welcome our guests. I have a couple of questions for each group and then a couple of questions that might be common to both groups. I will start with the group from Sheep Milk Ireland. As others have, I welcome the group's initiative. I see great potential in it. A couple of my questions might not sound that way but they are just for information purposes. I am aware that the group has conducted research on this and has put a lot of work into it. The group makes a lot of comparisons with New Zealand. In economy of scale, how viable would this be based on the Irish average sized sheep farm in comparison with New Zealand? There is probably a lot of investment required if a farmer is to start making loans on that when we compare the size of Ireland's economy and the average size of our flock. What work has the group done in that regard? Does the group believe there would be enough of a margin in it - if it were to get up and running - to justify the investment that probably would be necessary for milking machines and so on?

I would also like the witnesses to comment on genetics and genomics. Again, I am not being negative and I just want to ask the questions in order to get the information. The witnesses have talked a lot about this. Let us presume that one is breeding a ewe that is to be a good milk producer. Is there a possibility that we might end up with a Friesian calf scenario with regard to the store lamb? Again, I am not being negative but I would like to know the answer. If the purpose of the enterprise is milk related how could that have a long-term effect on the sheep meat production side of things?

Perhaps both groups could answer my next question. Apart from getting over all of those hurdles, is there buy-in out there? Is there much interest? Among the membership of the Irish Farmers Association are there many farmers or sheep farmers who would look at this and potentially go down this road and make the necessary investment? I would like to know what kind of feedback the IFA is getting from farmers on the ground.

My next question is more IFA related. We have been here before, I have met all of the representatives individually, and we have discussed this previously. We know where we are and we know what is needed. It is not for the want of lobbying, irrespective of what political party or none the witnesses might be aligned to. We are all batting for the farmers at every opportunity within the Department and with the Minister.

As Mr. Comiskey rightly said, some of the things that are getting rolled out about the payments that are available are touted as being covers for environmental measures and they are not intended, and never were intended, to support the sheep sector. One of the aspects that gets rolled out is the organic side. From talking with people who have gone organic on the sheep side, there is no market and there is no margin. Why is that? Is that the processors or is it Bord Bia? Is it that the markets are not there or are the processors not giving the organic lamb due respect? Organic is in every sector and every type of food with an organic label is popular on the shelves. When one hears the difference between what an organic sheep farmer is being offered per kilo compared to what the standard farmer is being offered, the margin is not there. I believe it should be. I would like to hear the witnesses' opinion as to why they believe the margin is not there. At whose door does that blame lie? Is it Bord Bia, is it the processors, or is it a combination of both?

I agree with the witnesses and I support their call for a contribution from that Brexit adjustment fund. Given their statements here and previous deliberations we have had, and after Brexit has levelled it out, it explains totally how the sheep sector has sustained the biggest hit aside from the mushroom sector. I will not rehash all of the reasons, but it includes the whole New Zealand aspect and the division of tariff-free importation from New Zealand. The Irish farmers got the blunt end of the stick there.

The chairman also touched on the issue of Northern Ireland lamb. I read recently that the quantity of Northern Ireland lamb that came south in the last year is up 30% from 2021, whether that be carcass or on the hoof. Where do the representatives see that ending?

Do they foresee ramifications in terms of us being polluted with Northern Ireland lamb and, following on from the Windsor Framework, New Zealand lamb coming in by back door to Northern Ireland? There is the possibility of Northern Ireland restaurants serving New Zealand lamb and Northern Ireland farmers sending their lamb down South, which would really be detrimental to our market. Is there any way of slowing that down, if not halting it? I see the potential for a serious crisis. We are all farmers in the room and in fairness, if there is an opportunity we do not tend to miss it. If farmers from the North can get more for their lamb in the South, even if it is a bad price, and restaurants in the North can get New Zealand lamb more cheaply, I am afraid that is what is going to happen. I can see the situation in Northern Ireland compounding this issue in the future.

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