Dáil debates

Thursday, 14 July 2022

Ceisteanna Eile - Other Questions

Ukraine War

9:40 am

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael) | Oireachtas source

I thank Deputy Griffin for raising a really important point. I completely agree that the humanitarian crisis will always take priority in terms of our view of this matter. As the Deputy outlined, there are also significant implications, which we are seeing across all sectors, including the agrifood sector, from Russia's illegal and awful war in Ukraine. We need to take the necessary steps to ensure food security is maintained for EU citizens, the Ukrainian people and in the wider global context.

Following a strong year for family farm incomes in 2021, where average incomes were up by 26% to more than €34,000, Teagasc has forecast that a decline in 2022 is now highly likely as output price increases will fail to offset the rise in production costs. I am acutely aware of the challenges facing our farm families as a result of these input price increases.

Significantly higher production costs will be a feature across all sectors in 2022, with higher fertiliser, feed and fuel prices leading to an increase in agriculture input costs. The current market outlook for output prices is uncertain, with significant upward pressure apparent, but this is unlikely to cover the additional input costs for many farmers.

The Minister and I meet stakeholders on an ongoing basis to discuss the impact of the Ukraine crisis on Irish agriculture and supply chains. At the start of the crisis, we established the national fodder and food security committee and tasked it with the preparation of a response to the emerging crisis in feed, fodder, fertiliser and other inputs and developing contingency plans and advice to assist farmers in managing their farm enterprises. We also established a rapid response team within the Department, chaired by the Secretary General, to monitor the impacts on agrifood supply chains actively and to contribute to the whole-of-government response.

Fertiliser merchants have indicated that there are adequate supplies of fertiliser in Ireland at present. However, there may be issues with availability of certain products at times and importers are active in securing alternative supply lines where necessary. Fertiliser affordability and availability is one of the biggest challenges facing our farmers at present.

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