Seán Connick (Wexford, Fianna Fail)

I am taking this Adjournment matter on behalf of my colleague, Deputy Brendan Smith, Minister for Agriculture, Fisheries and Food. At the outset I should like to thank Deputy Browne for putting down this important matter for discussion tonight. I share his concern as I have seen the impact of the Greencore decision and the difficulties it is now imposing on farmers, not just in Wexford but in the south east in general.

The maintenance in the first instance of an efficient and viable crop sector in Ireland is very important for the well-being of the agrifood industry. Indigenous production of cereals, horticulture and bio-energy crops is, of course, an important part of primary agricultural production in Ireland. In addition to generating an income for our tillage farmers, the cereal sector is a key source of feedstuffs for the livestock sector and, as a consequence, a significant stakeholder in the safety of the food chain. Annual cereal production in Ireland has fluctuated around 2 million tonnes in recent years. It is desirable to try to sustain this level of production in order to avoid over-dependence on imported cereals.

The Department operates a range of services aimed at improving the efficiency, quality and viability of cereal production. These services include seed certification, seed testing and recommended lists of varieties. In addition, Teagasc provides research, training and advisory services for cereal producers. The value of all these support services is reflected in the fact that Irish cereal producers have consistently achieved some of the highest yields in the world.

At present, up to 130 cereal varieties are undergoing testing in the Department. This results each year in a number of new and improved varieties being recommended to farmers and industry due to their suitability for malting, milling or bread-making, as the case may be. While the largest portion of the wheat crop grown in Ireland is used as feed for the livestock industry, a significant acreage of the crop meets the high-quality requirements of the milling industry. The crop variety testing programme includes extensive evaluation of new varieties for bread-making and biscuit-making quality.

Each year a number of new oat varieties are evaluated under the crop variety testing programme. These are mainly used in the production of specialised feed, and only those assessed as having high grain quality characteristics are recommended for cultivation. The demand for organically grown oats for inclusion in breakfast cereals continues to increase. The Department carries out a number of organic oat cultivation trials each year to identify varieties most suitable for this market. There is strong interest among commercial organic growers in the results of these trials.

The Department has had a long association with the malting barley industry in Ireland, dating back to the beginning of the 20th century with the introduction of a Guinness-initiated programme of breeding and testing to improve the varieties of malting barley available to Irish growers. This association was formalised in 1971 when the Department and the company agreed to share the operating costs of the programme. The programme ceased in 2002, mainly because of the withdrawal of the brewing company. However, the company continues to purchase malt manufactured from Irish malting barley.

The malting industry and the Department continue their collaboration in identifying the most suitable barley varieties for malting through the official variety evaluation programme. Quality issues have arisen recently with regard to protein levels in Irish malting barley, which has resulted in the importation of a small quantity of specialised malt by the company involved. Officials of the Department have been in communication with grower representatives regarding this protein deficiency issue.

The Department also continues to support the development of the horticulture sector in Ireland. This support has primarily been provided through the grant aid scheme of investment aid for the development of the commercial horticulture sector under the National Development Plan 2007-2013. The Minister of State, Deputy Cuffe, announced last Friday a grant aid package of €3.8 million under the scheme for 2010.

Funding provided under the scheme underpins capital investment on farms to promote the specialisation and diversification of on-farm activities, improve the quality of produce and ensure the application of environmentally friendly practices. This investment contributes significantly to the growth and development of the horticulture sector across all areas, including the protection of crops, field vegetables, nursery crops, mushrooms, soft fruit, apples and beekeeping. Additionally, aid for the horticulture sector continues to be available under the capital investment scheme for the marketing and processing of agricultural products.

Further financial support continues to be available to those producers who participate in the producer organisation scheme. This EU scheme provides an important mechanism for growers to become part of a larger supply base, to concentrate marketing and improve quality. Bord Bia continues to provide support to the horticulture sector in its efforts to develop new markets through assistance in the areas of product innovation and marketing skills.

The Department has also been providing support to farmers for the production of bio-energy crops. A pilot bio-energy scheme was launched in 2007 to support the planting of miscanthus and willow by providing assistance to farmers up to a maximum of €1,450 per hectare to cover 50% of establishment costs. Grants were paid in two instalments: 75% following establishment of the crop and 25% in the year after establishment. The pilot scheme supported 364 farmers in the planting of some 2,500 ha., consisting of 2,100 ha. of miscanthus and 360 ha. of willow, to the end of 2009, at a cost of some €2.9 million.

A new bio-energy scheme, co-funded by the EU under the rural development programme, was launched in February 2010 to build on the progress made during the pilot phase. Under this scheme, farmers receive a grant up to a maximum of €1,300 per hectare to cover 50% of the establishment costs. This reflects the reduction in crop establishment costs since the launch of the pilot scheme. It is expected that a further 850 ha., consisting of 470 ha. of miscanthus and 380 ha. of willow, will be planted under the scheme for 2010.

Deputy Browne will be aware that in February this year the Minister launched a major initiative to draw up a long-term strategy for the agri-food, forestry and fisheries sector. I assure the Deputy the position of the crop sector will be examined in this context.

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