Malcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

On behalf of the Minister, Deputy McConalogue, I thank Deputy Smith for raising this issue. It is agreed that it is a key priority for the Minister and the Department and a vital sector for the Irish economy. Our pig farmers have always been remarkably resilient but the Minister is acutely aware of the unprecedented set of challenges, as outlined by the Deputy, they are facing at present. The Minister has been in regular and close engagement with all stakeholders on this matter over recent weeks. The Department is monitoring the market situation closely and is examining all possible measures to assist in supporting farmers through this significant market disturbance.

The continued development of the pigmeat sector is a priority for the Government, given the pivotal role the industry 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.

The pigmeat sector across the EU has faced significant challenges recently, including the impact of African swine fever in several member states and consequential loss of third-country markets. This has had a knock-on effect on supply within the Single Market. We are all aware of the cyclical nature of commodities markets. For the pigmeat sector, this is now compounded by rising input costs. The situation in Ukraine, as the Deputy stated, has also exacerbated these challenges.

The Minister has had ongoing discussions in recent weeks with the main banks to discuss the current challenges in the pigmeat sector and the importance of ongoing support. He has emphasised the importance of the sector and of banks supporting their customers throughout the current downturn in the business cycle. The key message was that farmers experiencing cash flow difficulties should engage with banks as soon as possible to discuss options and that the banks should remain committed to supporting their customers. Separately, the Minister met with the Strategic Banking Corporation of Ireland, SBCI, to discuss the Brexit impact loans scheme and the Covid-19 credit guarantee scheme, 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 to address the current financial needs of pig farmers.

Last month, the Minister announced the pig exceptional payments scheme, PEPS, with a fund of up to €7 million for commercial pig farmers. This is an urgent short-term response to assist producers who would be viable but for the extreme circumstances being experienced now. It is intended to allow space for a more medium-term adjustment to market signals. Applications for the PEPS closed on 20 March 2022. The first tranche of payments has issued, with the remaining applications due for processing as soon as possible.

This scheme is part of a wider package of measures to support the pigmeat sector, including intensified efforts by Bord Bia to promote quality-assured Irish pigmeat in the domestic and export markets, with dedicated media advertising campaigns underway nationally and EU-funded pigmeat promotion programmes running in key export markets. Teagasc has also intensified its dedicated ongoing advisory supports being provided to pig farmers and it is actively engaging with pig farmers to explore the options potentially available to them.

Furthermore, the Department continues to engage at EU level to ensure there is a joined-up EU approach to the challenges arising from Russia's illegal invasion of Ukraine, including through the European food security crisis preparedness response mechanism. Last week, the European Commission announced the adoption of exceptional support measures across the agricultural sector, along with a communication on food security. Additionally, the European Commission, in view of the particularly difficult situation in the pigmeat sector, has opened a new private storage aid scheme to assist in stabilising the sector. The Department is examining the detailed requirements and conditionality attached to the exceptional aid allocation to Ireland of €15.8 million in EU funding.

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