Brendan Smith (Cavan-Monaghan, Fianna Fail) | Oireachtas source

It is good to see Deputy Verona Murphy in the Chair. It may be a sign of things to come in the future.

I appreciate the Ceann Comhairle's decision to allow this subject to be taken this evening. Following a number of parliamentary questions to the Minister for Agriculture, Food and the Marine during January, I also raised directly with An Taoiseach in this House through questions the urgent need to provide adequate Government support to the crisis-hit pigmeat sector.

I welcomed the introduction in early March of the €7 million support scheme for commercial pig farmers. This sector has been suffering significant losses for some time and we know the very viability of some pig units and farms throughout the country is now threatened. Sadly, in recent times, 7% of pig farmers have exited this sector.

Some 10,135 sows are gone from production, which equates to a loss of €66 million in exports on an annual basis. Teagasc has estimated that for every 1,000 sows de-stocked, there is a total loss of employment of 60 people, a loss of payroll of €2.42 million and €6.5 million in export losses. These are substantial losses in any rural community and already we have witnessed many multiples of those losses in employment and generation of revenue.

A number of factors have contributed to this crisis. During the early days of the Covid pandemic, there were staff shortages, which led to a backlog in processing and substantial market disruption, which lowered returns for pigmeat. Brexit impacted very severely on the value and volume of pigmeat exports to Britain, which is by far our most valued and valuable market. Since the start of 2021, the value and volume of those exports fell my 50%, obviously causing a severe adverse effect on the sector. African swine fever had a negative impact on the pig market. Coupled with reduced farm gate prices, there has been a massive increase in feed prices. The war inflicted on Ukraine by the brutal Putin regime has also impacted very severely on supply of feedstuff, alike to other disruptions in global trade in recent times.

This sector is worth €1 billion to the economy on an annual basis and is the third largest sector within agriculture. It also supports approximately 8,000 people in employment and makes a very substantial contribution to the rural and national economy. Teagasc estimates that approximately 30% of farm pig units are at risk of closure. This is very concerning and measures must be implemented by Government, with immediate effect, to deal effectively with this crisis.

A very detailed and well-researched proposal has been submitted to the Department by the Irish Grain & Feed Association, Meat Industry Ireland and the Irish Farmers' Association. This pig stability fund contains a number of proposals containing substantial financial contributions by pig farmers, plus immediate Government help. France, Belgium, the Netherlands, Poland and Slovenia have introduced direct aid for this sector.

Our sector, which is haemorrhaging significant losses, needs an immediate package of financial measures. There has been a major rationalisation of the sector over the years. We do not want to see a further reduction in producer numbers, which would be damaging to our overall agrifood industry. This sector is very efficient and it is a modern industry. It does not receive any support through the Common Agricultural Policy.

I fear that a major de-stocking could create animal welfare issues. It would also be very damaging to the image of our agrifood sector which has been painstakingly built up over many years with major EU and Government support and major investment directly by farmers and others in the sector. I appeal again to the Government to introduce, without delay, an immediate package of measures to ensure that the sector is supported through these very difficult times and that the crisis hitting it for some time is tackled head on.

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