Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I thank Deputy Carthy for raising this important and immediate issue. The continued development of the pig meat sector is a real priority for me, given the pivotal role the industry plays in the national economic context, which the Deputy outlined in terms of it being the third-largest grossing sector in the agrifood sector. It supports approximately 8,000 jobs which span production, slaughter, processing, feed manufacture and services.

Our pig farmers have always been remarkably resilient but I am acutely aware of the challenges they face at present. The sector throughout the EU has faced significant challenges in 2021 including the impact of African swine fever in a number of member states and consequential loss of third-country markets. Obviously, this has had a knock-on effect on supply and prices within the Single Market.

The average price paid for pigs in Ireland has fallen in recent months, in line with trends throughout the EU. The 2021 average price was more than 8% lower than that of 2020 and as of 23 January, the average price for grade E pigs came in at €140 per 100 kg, which is more than 8% lower than the same week last year. However, this is still well above the EU average price.

At the recent AGRIFISH Council, I clearly expressed my concerns about the difficulties facing the Irish pig meat sector both in terms of the ongoing impact of increases in fuel, fertiliser and energy prices over recent times, which put margins under further significant pressure, and the sustained nature of the difficulties experienced on the pig meat market. I sought the rapid deployment by the Commission of appropriate solutions on both issues.

I recently met with farmers from the Irish Farmers Association, IFA, pig committee to discuss these concerns. Following this, the Minister of State, Deputy Heydon, and I met the main banks to discuss the current challenges in the pig meat sector and the importance of their ongoing support. The importance of the sector and its overall resilience were emphasised, as well as the importance of the banks' support to their customers through the current downturn in the business cycle. The key message was that farmers experiencing cash flow difficulties should engage with the banks as soon as possible in order to discuss options. The banks made it clear that they remain committed to supporting their customers in the period ahead.

Separately, the Minister of State, Deputy Heydon, and I met with the Strategic Banking Corporation of Ireland to discuss the Brexit impact loan scheme and the Covid-19 credit guarantee scheme, both of which are financed by the Department of Agriculture, Food and the Marine, in partnership with the Department of Enterprise, Trade and Employment. These finance schemes can be used for working capital finance and include features which address the current financial needs of pig farmers.

We are all aware of the cyclical nature of the commodity markets which for the pig sector at this time is compounded by rising input costs. Pig farmers are being squeezed at both ends. During this period, maximum flexibility of financial matters is central to ensure the ongoing viability in the pig sector. I will also shortly engage with and discuss the matter with members of the feed industry as well.

The Minister of State, Deputy Heydon, chaired the pig round table last week and had a further detailed discussion with all the stakeholders, including farm representatives, banks and the processing and feed industries on the current difficulties facing pig farmers, arising both from the lower market prices and the significant increase in input costs, which are likely to continue for at least the first half of this year.

In terms of State supports, Bord Bia outlined the significant efforts being made to promote quality-assured Irish pig meat in the domestic and export markets and Teagasc outlined the dedicated advisory supports being provided to pig farmers. My Department and I continue to monitor the market situation very closely and are examining possible measures to assist in supporting farmers through the significant market disturbance.

I deeply understand the considerable challenges faced by our pig farmers and the significant stress they are under. I will continue to engage with them over what I know will be a challenging period ahead and seek to support them through that.

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