Andrew Doyle (Wicklow, Fine Gael)

I welcome the opportunity to address this subject. Bord Bia issued a press release today to welcome the increase of agricultural output sales to €8 billion, with meat and livestock increasing by 20% to €2.44 billion, with a rise of 10% in pigmeat exports reaching €317 million.

Unfortunately, behind that statistic there are facts and figures that paint a different picture. I visited pig farmers last night and met people who are affected by four factors that affect any production unit, particularly pig farming: on-farm efficiency, the price for the product, the price for inputs and the availability of credit. There is no doubt that anyone who has survived in recent years in the pigmeat industry is as efficient as any producer anywhere in the world. Our pig farmers produce a quality product and the consumer shows great loyalty to Irish produce but is often being duped into buying produce from another country. Labelling is another issue that must be addressed.

The price farmers receive is around 17% of the price on the shelf. The primary producer receives 17% of the cost of a high quality product that has not increased much in cost to produce but the producer is being screwed by getting less than 20% of the supermarket price.

Input costs in the pig sector in 2010 were €19 million per month. This is not relevant to grass-based animals such as cows and sheep but it is a cost that exists all year round for pig farmers. This year, the costs will be €25 million per month. On top of that, millers cannot fund the costs, processors are not prepared to do it and the banks cannot do it. Farmers are being told to sell pigs and to send a cheque before feed can be supplied. Potentially people will have to leave the industry. They must already sell animals below optimum weight, which cuts profits massively. At present there is a threat of a 15% reduction, which will lead to the closure of one mill and one processor.

The pig farmers do not want a hand-out, they want assistance in the short-term, with a contingency fund of €20 million being put in place to allow for interest free credit to allow them to cover their costs. Inevitably the market rights itself in the pig sector. The fund can be topped up when prices recover so the contingency fund will always exist for situations like this.

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