Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I thank the Deputies for raising this Topical Issue matter. I recently met representatives of the IFA, including members of its pig committee, in addition to farmers and I fully understand the scale of the challenge facing the sector. Indeed, we will meet the representatives again at 9 o'clock tonight. As Deputy O'Sullivan said, I met the farmers on Kildare Street today and spoke to them.

The continued development of the sector is a priority for the Government given the pivotal role it plays in the national economic context. It is the fourth largest agrifood sector and has shown remarkable growth in recent years. The sector supports approximately 8,000 jobs, spanning production, slaughter, processing, feed manufacture and services.

Our pig farmers have always been remarkably resilient but I am acutely aware of the challenges they are facing. The pigmeat sector across the EU has faced significant challenges in recent times, including the impact of African swine fever in several member states and the consequential loss of third-country markets. Obviously, this has had a knock-on effect on supply and prices within the Single Market. The current situation in Ukraine has exacerbated these challenges.

I have had ongoing discussions with the main banks over recent weeks on the current challenges in the pigmeat sector and the importance of their ongoing support. I have emphasised the importance of the sector, its overall resilience and the importance of their support of their customers through the current downturn in the business cycle. The key message I am issuing is that farmers experiencing cash flow difficulties should engage with banks as soon as possible. It is important to have a partnership at this difficult time.

Separately, I met representatives of 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 my Department in partnership with the Department of Enterprise, Trade and Employment. These finance schemes can be used for working capital finance and include features that address the current financial needs of pig farmers.

We are very much aware of the cyclical nature of the commodity markets, which for the pig sector at this time is compounded very much by rising input costs. Maximum flexibility in financial matters is needed to ensure the ongoing viability of those in the sector.

I have had meetings recently with the IFA president and pig committee members to discuss concerns. At these meetings, I reiterated the Government's commitment to supporting the sector. As the Deputies will know, I recently announced the pig exceptional payment scheme, with its fund of up to €7 million, as an urgent, short-term response to assist producers that would be viable but for the extreme current circumstances and to allow space for a more medium-term adjustment to market signals. This scheme is once off, paying up to €20,000 per farmer. The first tranche of payments was made last week, with the remaining application due to be processed as soon as possible. The scheme reflects the Government's clear commitment to supporting the pigmeat sector. The scheme is part of a wider package of measures to support the sector, including intensified efforts by Bord Bia to promote quality-assured Irish pigmeat in the domestic and export markets, with dedicated media advertising campaigns under way nationally, as well as EU-funded pigmeat promotion programmes running in key export markets.

Teagasc has intensified its dedicated, ongoing advisory supports for pig farmers and is actively engaging with them. At EU level, I have been engaging in respect of the European Food Security Crisis Preparedness and Response Mechanism. My Department is currently examining the detailed requirements and conditionality attached to the exceptional aid allocation to Ireland of €15.8 million.

As both Deputies have raised, a proposal has been made by stakeholders through the IFA. I received it last Wednesday week and my departmental officials have been assessing it. I will meet IFA representatives later to discuss the proposal. I am aware of the acute challenge facing the sector and will continue to engage with it on the appropriate response. I thank both Deputies for raising this matter on the floor of the Dáil and for their advocacy on behalf of the sector.

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