Mary Wallace (Meath East, Fianna Fail)

I regret the announced job losses and hope those affected will find alternative employment. The firm's decision is part of a rationalisation programme to secure the future of the company in the face of market changes and intense competition from overseas producers. This will see the firm move to a seasonal production cycle supplying the peak Easter and Christmas markets, although it will also continue with some added value poultry processing. Talks are in process with the turkey producers involved about the new arrangements.

The developments at this company illustrate the very competitive nature of the poultry sector. However, it has shown exceptional resilience in recent years. It recovered from the consumer concerns centred on avian influenza in 2006 and has managed to absorb the high feed costs evident over the past year. In fact, there was a 3% growth in output in 2007. Competitiveness remains a significant problem, however. The Irish poultry sector is small by international standards, accounting for just over 1% of total EU output. It does not enjoy the economies of scale enjoyed by other EU countries while it is also the case that imports from non-EU countries have also had a significant impact on the market. In the case of turkeys, the relatively seasonal nature of demand has been another constraint on the development of the sector.

The industry has and must remain market oriented. The Minister for Agriculture, Fisheries and Food will continue to take the steps open to her to assist the development of the sector. A number of recent initiatives have been taken and I believe these will be of significant benefit. The poultry expert group was established with the objective of examining the main factors impacting on the viability of the poultry industry. It was asked to draw up relevant action points. The group included representatives of the producers, processors, feed suppliers and relevant State agencies. The final report of the group contains recommendations on matters such as labelling, animal welfare, environmental protection and feedstuffs. That report is under consideration and will be published shortly on the Department's website.

Deputy O'Hanlon spoke of the importance of origin labelling. This is a matter of considerable interest to Irish poultry producers and consumers. The Department, in conjunction with the Department of Health and Children, has drafted national regulations that would require the country of origin to be indicated on poultry, pigmeat and sheepmeat. This legislation was notified to the European Commission which, along with other member states, has until 14 March to comment on the proposed legislation. The Minister, Deputy Coughlan, has written to Commissioner Fischer Boel to reinforce the case for country of origin labelling.

The Bord Bia poultry quality assurance scheme has been instrumental in consolidating the position of Irish poultry on the domestic market and has helped to alleviate concerns and confusion regarding the quality and sourcing of poultry. This year Bord Bia plans to upgrade the chicken quality scheme to the EN45011 standard which will provide further independent endorsement of the quality of Irish poultry. Other measures include a package of financial assistance that was made available in 2006 and 2007 to broiler producers who were forced to cut back on throughput due to the avian influenza scare. In addition, the intensive livestock group established by the Department is examining possible solutions to manure disposal problems.

The Minister, Deputy Coughlan, appreciates fully that the poultry industry will continue to face a very competitive environment. While it may seem little consolation to those affected by these job losses, she is confident that the industry can meet its challenges. Allied to the measures outlined above, I believe that the sector can continue to benefit from its knowledge of the home market and the consumer preference — to some extent at least — for Irish produce.

I thank Deputy O'Hanlon for raising the topic. We will continue to pursue the issues he has stressed, such as origin labelling, as the points he has made are very important as regards the domestic market.

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