Robert Troy (Longford-Westmeath, Fianna Fail)

I am pleased to have the opportunity to speak on this important issue. I commend the Minister for Agriculture, Fisheries and Food and the Government on their support for this motion. I represent a rural constituency and anyone who represents such a constituency will understand the importance of the agricultural sector for the economy as a whole and not just for rural Ireland. The agrifood and fisheries sectors represent the largest indigenous industry which collectively employs 150,000 people with an annual output of more than €24 billion. This represents 60% of the manufacturing exports by indigenous firms. With a total of €7 billion in exports, the sector accounts for more than half the manufacturing exports by Irish owned firms and serves in excess of 160 export destinations. While there may be difficulties, as in every industry, the future is one of real opportunity. Fianna Fáil, when in government, produced Food Harvest 2020 as a roadmap strategy for agriculture up to the year 2020. There is no doubt this is an ambitious plan but one which can be implemented.

I refer to the main points of Food Harvest 2020 as planned by the former Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith. I welcome the Government's commitment in the programme for Government to the implementation of the plan. Food Harvest 2020 proposes an increase in milk production by 50%, an increase in the value of beef output by 20% and potential for a 20% increase in output in the sheep sector. It proposes that horticulture currently worth €370 million be enhanced in value by a reduction in imports, that organic production should continue to be supported by the Department of Agriculture, Fisheries and Food, and that pigmeat production could be increased by 50% in value if worldwide pork consumption continues to grow and cost issues are addressed. Ireland is only 80% self-sufficient in cereals so there is room for expansion in this regard.

If Food Harvest 2020 is to be achieved, the Department needs to look at how best to encourage more people into this sector. Typically, one is born into farming but since the suspension of the farm retirement scheme and the installation aid scheme, the same incentives are not present for fathers to pass over to sons and daughters. I encourage the new Minister for Finance to consider taxation measures to encourage the transfer of farms from one generation to the next, whether that be from father to child or from uncle to nephew or even older generation neighbour to a new, younger generation of farmer. This needs to happen to ensure a new generation is willing to embrace change and make the necessary investments in their business to ensure viable family farms.

Given the current trends in milk production in this country, I do not believe there will be any difficulty in us achieving the targets set down in Food Harvest 2020, which is a 2.75 billion litres increase and which will enhance the primary output value of the sector by almost €700 million, with further benefits in the form of increased dairy product values, export earnings and employment. We must be careful, however, not to exceed our current milk quota prior to the phasing out of same by 2015, as this would have serious consequences.

The current situation in Europe is farcical. A number of countries are well below their quota while others, like Ireland, are almost at their quota and those who exceed their quota, as was the case with Denmark, the Netherlands, Cyprus in 2009 to 2010, are subject to superlevy fines of €19 million. Given the quota system is to be phased out by 2015, the Minister should negotiate a European-wide quota which would allow for an orderly expansion of our dairy sector.

It is also important to ensure dairy farmers receive a fair price for their milk. Most milk in Ireland is now traded through supermarkets, thus creating a highly concentrated market and giving the power to the supermarkets. I encourage the Minister to deal with this situation to ensure dairy farmers consistently receive a fair price for their milk.

The Government needs to exercise extreme caution with regard to the Mercosur talks. Fianna Fáil's position is that it makes no environmental sense for the EU to allow its production to be displaced by less sustainable systems such as those operating in South America. The beef quota sought by Mercosur countries would certainly target the market for high value fresh and frozen beef. It would undermine Ireland's beef industry and it is not acceptable. Not only would a deal contradict the EU policy on climate change, it would also go against targets set under Food Harvest 2020. In April 2011 the Russian authorities took a decision to ban Brazilian beef from 27 plants following a two week inspection. This once again puts a question mark over production standards in Brazil. According to John Bryan of the IFA, these damning findings confirm the evidence of the lack of standards in Brazil as found in the IFA and Irish Farmers' Journal missions in 2006 and 2007. There must be a full reappraisal of the EU policy on meat imports and the controls in operation in third countries. The EU sell-out of agriculture in Mercosur must be stopped now.

Fianna Fáil has always been consistent and resolute in advocating the absolute necessity of a strong and fully funded Common Agricultural Policy and it will continue to do so. The Common Agricultural Policy will provide the main policy framework for development of the primary agriculture and agrifood industries in Ireland and in the EU to 2020 and beyond, hence its great importance. As an economic driver, its importance and continued financial support cannot and must not be under-estimated. Last year alone, the single farm payment was worth €1.23 billion to Irish farmers. While formal negotiations on CAP reform have yet to begin, the Government's priority must be to defend the direct payments to Irish farmers which protect their incomes, to continue decoupling payments, to ensure adequate measures are in place to support the market in times of crisis, to maintain a strong rural development programme with an increased focus on active farmers, to support competitiveness and sustainability, and to reward farmers for the public goods they produce. A future Common Agricultural Policy must include a direct payment system which provides a fair share of funding and support to ensure the viability of Irish farming.

I refer to the buying power of large supermarket chains and the need for governments to ensure farmers and food producers get a fair price for their products. I encourage the Government to fast-track its commitment in the programme for Government to bring forward the fair trade Bill. While in power, Fianna Fáil was committed to implementing a code of practice for doing business with the grocery sector. Legislation is needed to ensure any codes of practice in governing the relationship between the retailers and suppliers is mandatory.

The dairy farmers' share of the retail price of liquid milk has fallen from 42% in 1996 to 26% in 2009. This shows clearly the exploitation of milk producers by large supermarkets. The fair trade Bill will also ban a number of unfair trading practices in the retail sector, such as so-called hello money which suppliers must pay to secure a place for their goods on supermarket shelves. I encourage the new Government to ensure this Bill is fast-tracked and I ask the Minister to consider bringing it before the House before the summer recess.

A recent Teagasc survey found that the average farm income increased by 48% in 2010. This brings the average income for the farming sector to €18,000. While this is welcome news, it simply represents a recovery in the sector and brings incomes back in line with those recorded in 2008. I encourage the Department and the Minister to do all in their power to seek further improvements in family farm incomes.

See this speech in context