Holly Cairns (Cork South West, Social Democrats) | Oireachtas source

I welcome this overdue discussion of the major challenges facing the sheep sector. It is fair to say that these farmers have been severely hit by recent circumstances, especially Brexit and increasing operating costs, and that they simply have not received the same level of support as other sectors in agriculture. There are more than 47,000 sheep keepers registered with the Department of Agriculture, Food and the Marine, with 36,000 herds being recorded for 2021, spread across the country. The past year has been particularly difficult with operating and input costs rising rapidly, while at the same time the prices sheep farmers receive are down. This is simply unsustainable.

In addition, for years now, very few farmers have been able to make profit from wool. In many cases wool is discarded. Because we do not have the proper structures in place it is economically worthless. It is important to say that again, that wool is being thrown away despite the fact that it is incredibly versatile, from textiles and horticulture to fertiliser and insulation. It could be insulating our homes in the middle of a housing crisis when the cost of construction has just sky-rocketed. It has so many applications and we should really and truly have a thriving wool sector in Ireland. Instead, we have the opposite. That is indicative of an approach that fails to value wool as a product, an economic asset and a cultural heritage.

What is the Government going to do? The Minister has been aware of the situation since taking office and he knows how difficult it is for sheep farmers right now. His solution in the budget was just inadequate for the pressure farmers are facing. The new sheep improvement scheme increased the payment rate by €2 ewe, from €10 to €12, but that €2 was straight away already eaten up with rising costs from shearing to vaccines. Sheep farmers are basically running just to stand still.

There is a pressing and clear need for an intervention package, including direct payments and the acceleration of plans to develop the wool industry. Sheep farmers who have been impacted by Brexit have made a strong case that the Brexit adjustment reserve fund should be used to assist farmers currently facing severe challenges. They are seeking €30 per ewe as part of an emergency package. The sector already receives less support than other agriculture areas, and that needs to be considered. The Minister has already acknowledged there is a real challenge in the sheep sector at the moment. What actions is he going to take and what policy changes is he going to make as a result of that acknowledgment?

I raised the issue of wool in the Chamber a few weeks ago. It is incredibly versatile and can be used for clothing, textiles, insulation, horticulture, packaging, cosmetics and composites. It was not that long ago that wool was worth more to sheep farmers than selling the animals themselves. There is no reason we cannot have a thriving wool industry in rural Ireland as we had in the past. It just needs a strong commitment from Government.

I acknowledge the work conducted so far and the establishment of the wool council as an important first step. However, this area needs a strategic focus and immediate investment for long-term results. Last year's feasibility report highlighted both the many opportunities for the sector and the challenges involved in making these avenues a reality. It has provided a clear framework for Government and the wool council. There are numerous recommendations in the report that need to be acted on.

There is a strong emphasis on the role of co-operatives as a model to support farmers, pool resources and keep added value as close to the farm as possible. There are already several wool co-operatives in Ireland, and the British wool board has good practices that could be replicated. Crucially, co-operatives have been identified as a means of addressing our shortage of skilled graders. We are entirely reliant on UK wool merchants to examine and value Irish wool. If we were able to grade the wool, through training and upskilling in co-operatives, we could retain more local control, which is crucial to playing a larger role in the value chain and supply chain. Progress on these matters cannot come soon enough. Farmers need co-operatives and skilled graders.

One of the most glaring and under-released market opportunities is in insulation. Wool is a low-embodied carbon and user-friendly material for thermal and sound insulation. We could replace imported synthetic products with natural Irish materials, while helping to meet our climate targets. This is literally a win-win-win scenario. I cannot understand why the Minister and the Minister for the Environment, Climate and Communications do not already have a clear and resourced plan in place to make this happen. I met representatives of the ICSA on Monday. One of the things I had not realised is that we do not have a way of scouring wool in this country so it has to be exported for that purpose. We cannot use the wool for any of those industries unless that happens. The wool council is brilliant, but are things being put in place to immediately provide resources here that would allow us to develop the industry? A wool hub in Ireland including that service could be transformative for the industry and rural economies. Following the example of New Zealand, we could have a strong research and innovation centre that would help increase sectoral efficiencies while also improving and increasing the applications for wool. This would also act as a focal point for collaboration between co-operatives and the enhancement of networks to share and develop best practices. We need more information in that regard.

In the words of the report, "While in Ireland, a focus has been on quality meat production, it is time to consider establishing such a Hub to bring a focus on Wool Innovation". I agree that it is time the Government properly supported the wool sector.

Will the Minister clarify what is happening with areas of natural constraint payments? Why has he decided to issue them one month later than usual this year? Small farmers, many of them sheep farmers, depend on that payment to supplement costs and repay loans. Farmers have budgeted to receive that in September, usually the week of the National Ploughing Championships. It is unfair not to offer an explanation for the delay. It is adding to people's long list of worries.

If today’s statements are to be worth anything, sheep farmers need to know the Minister is taking their issue seriously. They need a financial package to address the current issue and they need long-term investment in the sector, especially in light of the considerable potential of wool.

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