Seán Connick (Wexford, Fianna Fail)

I thank the Deputies who spoke for their engagement with Food Harvest 2020, which we must all agree is critically important to the future of the agri-food sector. I wholeheartedly agree with the sentiments expressed by my colleague, the Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith, and others today on the potential of the agriculture, food, fishing and forestry sector. This remains Ireland's most important manufacturing sector, accounting for over 6% of GDP and approximately 7% of national employment. This sector is the primary outlet for the produce and output of the country's 128,000 family farms and includes approximately 650 food and drinks firms with a wide geographic spread throughout the country. We hear much these days about stimulus. There is broad agreement across the House that the agriculture sector is in itself a stimulus for the economy. One must recognise that as the report does.

The transformation which this multi-million euro export industry has undergone during the past decade has been quite remarkable. Consider that in the early 1990s the sector was largely commodity based and underpinned by market support mechanisms but today it is a market led and more consumer-focused industry adept at capturing market share for value added produce. Of particular note has been the development of the sophisticated prepared food industry, including seafood, whose exports are valued at over €1 billion and for which the UK remains our largest market. Furthermore, and very importantly, the overall sector is estimated to account for approximately one third of the net flow of funds from primary and manufacturing industries due to the high proportion of indigenous raw material and services used and the low net profit repatriation.

I was struck by the positive attitude from rural families at the recent ploughing championships. There is also a renewed and growing recognition in the wider community of the role that agriculture, fishing and forestry can play in our economic recovery. After a few very difficult years, the immediate outlook for the agri-food sector is improving, with estimates of a €300 million increase in farm output compared to 2009. I realise there is considerable concern in regard to the Common Agricultural Policy, CAP, and to the Common Fisheries Policy, CFP. The Minister and I are working extremely hard with our MEPs to make and state the Irish case at European level, for and on behalf of the Irish agricultural sector. The value of exports during the first five months of 2010 was almost €3 billion, more than 8% higher than a year earlier. The rate of recovery has accelerated as the year has progressed, with exports in May some 23% ahead of the same month in 2009. This is good news for farmers, their families and the whole rural economy and gives a positive but realistic platform to think about the future of the sector.

This is good news for farmers, their families and the whole rural economy. It gives a positive but realistic platform for reflecting on the future of our sector. Indeed, my late father always famously said that when the farmer had money, everybody had money, because the farmer spent it.

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