Matt Carthy (Cavan-Monaghan, Sinn Fein) | Oireachtas source

I welcome the fact that the Minister for Agriculture, Food and the Marine is here. It is good to see a senior Minister taking a Topical Issue matter. I hope his presence is a recognition of the importance of the pig sector and the crisis it faces. The pig sector in Ireland is a vital component of our rural economy, albeit one that is often under-recognised. Almost 10,000 jobs are directly and indirectly supported by the sector. There are 1,675 pig farms across the State, 1,108 of which have five pigs or fewer. The pig sector is the third largest agrifood sector in the country and exports of pigmeat alone were worth over €893 million in 2020. The industry is concentrated in particular parts of the country, my constituency of Cavan-Monaghan being a prime example, and it is an integral part of the local economy in those regions. Put simply, if the pig sector is in trouble so too are those rural economies, and the sector is in big trouble. It has been hit hard by what I have heard described as a perfect storm of crises. Any one of those crises would have been a calamity but together they represent an existential threat, unless real action is forthcoming.

In the first instance, Brexit has had a devastating impact. Britain is the industry's most important export market and exports there are down 14% since Brexit. Transport costs have militated against any real prospect of sourcing alternative markets. Input costs have also gone through the roof. The cost of feeds such as barley and wheat has increased by 50% and increases in energy costs have hit hard. I spoke to one pig farmer today whose gas bill has increased from €10,000 a month to €40,000 per month, while electricity price hikes are also having a severe impact. Input costs are going up and factory prices are falling. To compound the situation, the capacity of processing plants is at a crisis point due to staff shortages. This results in delays in getting pigs to factories and every day delayed means further increased costs. If those delays result in pigs becoming out of specification there is a further cost of up to €50 per animal. In essence, we have insufficient slaughter capacity, which means farmers are paying more to feed pigs for which they receive less. There is an immediate cash flow crisis but it did not happen overnight.

Many Deputies have been raising this not only here but also in the Assembly because there is a North-South aspect to this issue. I acknowledge that the Department established a pig sector round table early last year. Clearly there has been plenty of talk about the crisis the sector is facing but action is now required because we simply cannot wait for transport costs to decrease or for the new deadline for veterinary alignment with Britain. We need action in the first instance on the staffing crisis in the processing plants. The Minister previously referenced his engagements with the Department of Enterprise, Trade and Employment regarding permits and reported progress but pig farmers are telling me they have not seen evidence of that progress. I ask the Minister to outline what is causing that delay. Can he assure us that there will be physical evidence of an increased workforce in the coming days? I also note that the Minister has engaged with banks and the Strategic Banking Corporation of Ireland, SBCI. I ask him to explain what the outcomes of that will be. Will there be increased funding to the SBCI ring-fenced for the pig sector? Will there be relaxed conditions in order that farmers who have already been denied finance by their banks will be supported?

Farmers tell me they are being refused finance, especially due to the volatility, for the alleviation of which we are encouraging them to take the loans in the first place. Will the Department ensure all levies being imposed on these farmers are suspended for the duration of this crisis?

Considering the impact of Brexit, will the Government deliver direct supports via the Brexit adjustment reserve? If the reserve cannot be used for this sector at this time, it is difficult to see how any farmer will ever be able to secure funding from it.

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