Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

The Covid-19 pandemic has had far-reaching impacts and consequences. From our large towns and cities to the most remote parts of rural Ireland, the effects of this deadly disease visited many families and communities. The agrifood sector played a crucial role in keeping supply chains working, keeping the nation fed and driving food exports to ensure a balanced economy. The sector is the largest indigenous export sector and drove exports of some €13.2 billion in 2020 despite all the challenges of Covid-19 and Brexit.

The delivery of essential services to farmers, fishers and the food and forestry sectors was prioritised by the Department and its agencies throughout the course of the pandemic. The necessary steps have been taken to ensure that producers and processors can continue to operate effectively and keep supply lines open and that the Department and agencies can operate as effectively as possible. A committee which I chair, and which includes senior leadership from the agrifood State agencies, which meets to monitor progress on the implementation of strategy, met five times in 2020 and Covid has been a standing item on the agenda. The cross-Government response, the continuity of services to the sector, specific supports and the potential long-term impacts for the sector are discussed. While the challenges have been great, I am proud of the efforts of everyone in the sector to keep the supply chains moving throughout. We saw the rush for food at the start of the pandemic but the supply chain from farmers and fishers through to processors and on to the shelves remained intact.

Irish food supply chains have continued to operate effectively to ensure continuity and security of supply of safe, healthy food for consumers at home and abroad. In the context of the pandemic, primary responsibility for public health policy and implementation rests with the Department of Health and the HSE. In ongoing engagement with the food industry since my appointment as Minister, I have emphasised that the health and safety of workers must be the absolute priority. My Department is supporting the HSE and the Health and Safety Authority in monitoring the effective implementation of all relevant guidance in Department-approved food plants, including the specific HSE guidance for meat plants. My Department also supports the HSE in the context of local outbreak teams, and the standing committee which oversees a programme of serial testing of workers at larger food plants and in other businesses. The first cycle of serial testing at food production facilities started on 14 September 2020. A further four cycles were subsequently completed, and a sixth cycle is currently in progress.

My Department continues to provide any assistance requested by the HSE to facilitate this testing programme. My Department is also collaborating with other State agencies, university-based researchers and meat plant operators in further studies of risk factors and enhanced measures for risk mitigation for Covid-19 in meat processing plants. At a practical level, and on an ongoing basis, the industry is working to ensure that all the basic measures to reduce the risk of spreading the virus are being implemented correctly. They include, for example, ensuring that workers are reminded on a daily basis of the public health guidance, in a range of languages, screening questions and temperature check on entry every day, social distancing in canteens and locker rooms and adequate PPE for all workers. There is no room for complacency on the threat posed by Covid-19. In the context of the virus it is vitally important that all our decisions and actions are led by public health advice.

The agrifood sector is an essential part of the economic and social fabric of the country, especially in rural and coastal areas. The Department is working with all the agrifood stakeholders to ensure that the sector, as our largest indigenous industry, is supported during these difficult times. A number of supports were introduced in the past year including a scheme of aids to private storage under the CAP for certain dairy products, following a campaign by member states, spearheaded by Ireland. I secured an 11% increase in the Department's budget in October for the current year, which I am aiming primarily at supporting farm families in the coming months. Specifically, €50 million was provided for a support scheme for beef finishers who were severely impacted by the economic effects of Covid. I also brought forward balancing payments under the basic payment scheme, BPS, GLAS and the organic scheme and various practical flexibilities for applications for the main farm schemes.

On the fisheries side, the Covid-19 voluntary temporary fleet tie-up scheme for fishing vessels was introduced under the European Maritime and Fisheries Fund Operational Programme 2014-20. A support scheme for rope mussel and oyster farmers was also introduced under the same programme, which was co-funded by the Exchequer and the European Union. Many of the horizontal supports available to individuals and businesses are also available to the agrifood sector, including the Covid-19 working capital loan scheme and the Covid-19 credit guarantee scheme, CGS, both of which are supported by the Department. The Department and its agencies, in consultation with stakeholders, will continue to monitor the impacts of the pandemic on the agrifood sector as the situation evolves and to provide appropriate supports.

Concern early in the pandemic that Covid-19 lockdown measures would lead to a significant reduction in food demand throughout 2020, thankfully, did not materialise. Due to the pandemic, food consumption outside the home fell substantially, but this was somewhat although not entirely offset by increased consumption at home. However, the lockdown measures did impact directly on primary producers in a variety of ways, from restrictions on marts and garden centres through to the sudden collapse of food service demand across Europe. Teagasc has forecast that family farm incomes will actually be up across most farm systems in 2020, with the average farm income projected to be up by 6% on the previous year. A key driver of this increase has been a reduction in animal feed, fertiliser and fuel prices, along with additional subsidy supports for beef finishers to alleviate the negative effects of Covid on the beef market. However, I am aware that these reductions relate to last year and that there are concerns about increasing input costs in the current year.

The CSO's first estimate of agricultural operating surplus for 2020 released last December is an expected annual increase of 14% to €3.484 billion.

It is worth noting that the agrifood sector is labour-intensive. Producing, processing and distributing food requires the work and expertise of many different employees in various roles. From the farmers who calve the cows, lamb the ewes and tend to the crops to the food processors, it takes a significant effort to produce the world class food which we are renowned for and enjoy. The overall agrifood supply chain has proven remarkably resilient throughout the pandemic. There have been some issues in meeting the seasonal demand for labour, for example in the horticulture sector, which relies on experienced seasonal workers, many who travel annually from eastern European countries. I expect that because of travel restrictions this year, seasonal labour shortages may arise again. Last year, the horticulture sector collaborated with my Department and the Department of Social Protection in a campaign to recruit unemployed people here in Ireland to fill some of these vacancies. I hope that similar initiatives this year can be successful.

Our seafood sector was heavily impacted by Covid-19 over the past year. The pandemic affected the performance of all species with seafood exports declining by 10% in 2020. This impacted individual fishers through low market prices for their catch or indeed no market at particular times. For aquaculture producers, it mostly impacted the shellfish sector which suffered a 29% reduction in export values. This sector is heavily dependent on the food service market and thus was particularly affected by lockdowns across Europe. As outlined earlier a range of horizontal supports provided by Government have remained open to seafood enterprises throughout the pandemic. Where specific financial supports were sought by industry representatives, proposals have been given careful consideration and support schemes made available.

I will address alcohol and prepared consumer foods. The Irish drinks sector has been especially impacted by the closure of hospitality and tourism across the world. The prepared consumer food sector, meanwhile, has shown remarkable resilience at a time of severe disruption to its markets, for example in reorienting products aimed at food service for the retail market.

After a period of cessation in the horse and greyhound industries, thoroughbred racing was permitted to resume behind closed doors on 8 June. According to Horse Racing Ireland, continuing racing has been crucial to ensuring that trade in bloodstock has been able to continue. That notwithstanding, bloodstock sales in the year were down 35% compared to 2019. Point to point racing was also discontinued and the economic impact of the cessation will continue to be actively monitored. The pandemic has compounded an already difficult time for the greyhound industry, with falling attendance and revenue already an issue.

I commend everyone involved in the agrifood sector, including farmers and fishers, those who work in the food industry and those in logistics and retail, and thank them all for their efforts over the past year. Their Trojan efforts ensured that our reputation as a leading exporter of food was maintained despite all our challenges. I look forward to working closely with the entire sector during the year to come, when we are hopeful of a return to a more normal operating environment, as we look to the further sustainable development of our sector.

My colleague, the Minister of State, Deputy Martin Heydon, will outline how the sector fared in international trade and some of the work we are undertaking to ensure our produce can continue to reach all corners of the globe.

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