Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

In the context of the Ukrainian crisis, significant implications are being seen across all sectors, particularly the agrifood sector. I assure the Deputy that the illegal invasion of Ukraine and its impacts on our farm families continue to be the number one priority for me and the Department since the invasion occurred.

At farm level, the crisis has been impacting significantly on the price of fertiliser and animal feed, as we have discussed. Following a strong year for farm family income in 2021, Teagasc has forecast that a decline in 2022 is now likely as output price increases have, until recently, been failing to offset the rise in production costs. Significantly higher production costs will be a feature across all sectors this year, with higher fertiliser, feed and fuel prices. The current market outlook for output prices is uncertain. We cannot be sure of it but upward pressure has been seen. There is no guarantee that this will cover the additional input costs.

The Deputy will be aware that I have set up a rapid response team in the Department and, at national level, the national fodder and food security committee under the chairmanship of Mr. Mike Magan. Under the leadership of Dr. Frank O'Mara and the Teagasc team, the committee is working very closely with farm organisation representatives to manage the challenges in this area.

With regard to supporting farm families, we have introduced a number of packages. We provided €12 million to incentivise increased tillage and grain production, which is very important. Working with the Minister of State, Senator Hackett, we are providing €3 million in support for the horticulture sector. Working closely with the Minister of State, Deputy Martin Heydon, who is chair of the pig roundtable on this issue, we have introduced €20 million to support the pig sector at a time when it is under massive pressure. More recently, the fodder incentive scheme was introduced to incentivise Irish families to do what we do tremendously well, namely, to grow grass, while recognising this is costing more this year and to support farmers with that cost challenge.

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