Mary Coughlan (Donegal South West, Fianna Fail)

The sheep sector is a hugely important part of the overall Irish agri-food sector and I believe it has a very good future. The sector's future depends on its ability to meet the needs of the market. The downward trend in production and an ageing consumer profile point to both supply and demand issues. I am confident, however, that a framework is being put in place to address these issues.

The basis of that framework is the 2006 sheep strategy report and the subsequent implementation report, which was presented to me last April. The strategy report addressed the current position of the industry and the options for ongoing development. It sets out a series of recommendations covering areas such as production, research, advice, processing and marketing. The goal is to facilitate the development of a more profitable sheep sector covering lambproduction, lamb processing and marketing sectors of the industry. Most of the recommendations in the strategy report fall to be implemented by the industry itself and it is too early at this stage to assess their impact. The recommendations are supported by my Department through assistance for breeding and management, processing facilities, mechanical grading and quality assurance.

In addition and in line with the group's report, sheep farmers are major beneficiaries of various schemes being operated by my Department. Under REPS 4, a new supplementary measure aimed at sheep farmers has been introduced. A budget of €28 million a year has been allocated to fund the proposed new supplementary measure at an overall cost of over €170 million for the period to 2013.

In addition to the measures being taken at producer and processor level, Bord Bia's marketing and promotional efforts will be critical. Bord Bia will continue to organise strategic marketing campaigns in selected European markets. France will continue to be a priority and its promotions there are run in conjunction with the major retailers and cover over 1,200 outlets. The downward trend in lamb consumption within the EU presents a real challenge. To address this challenge, Bord Bia is collaborating with its French and British counterparts to develop a three-year generic lamb promotion on the French market to promote lamb to younger consumers. This campaign, which amounts to a major new initiative on the European lamb market, is due to commence early next year.

With the co-operation of all stakeholders and in line with the approach set out above, the sheep sector can continue to make an extremely valuable contribution to the agri-food sector and to the economy as a whole.

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