Trevor Sargent (Dublin North, Green Party)
Link to this: Individually | In context

Question 66: To ask the Minister for Agriculture and Food if she will report on the acreage of potatoes grown here in 1970, 1980, 1990, 2000 and in the latest year for which figures are available, and if she will take action in the breach of contract between a company (details supplied) and growers in north County Dublin which has put the sale of 4,500 tonnes of stored potatoes in doubt. [6975/05]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

The area of potatoes grown in Ireland for the years requested is as follows:

The issue regarding the sale of 4,500 tonnes of stored potatoes does not come within my remit and is a matter for resolution between the growers involved and the company with whom they carry on business.

Trevor Sargent (Dublin North, Green Party)
Link to this: Individually | In context

Tugaim faoi deara óna figiúirí a thug an tAire Stáit dúinn go bhfuil laghdú ann. I appreciate that negotiations are ongoing and I hope they will have a satisfactory outcome. However, the wider issue for which the Minister of State is responsible is the overall welfare and development of the potato growing sector in Ireland. As he has clearly outlined, the fact that the total area under production has fallen from 56,835 hectares in 1970 to just 12,000 at present represents a huge decline in potato growing in a country which should be exporting its produce as we are in other sectors. It is alarming. Some 20% of growers have left the business in the past five years and more will leave this year.

Does the Minister of State have plans to develop the sector and arrest this decline? For example, does he recognise that there are particular difficulties in the seed potato sector at present? An application has been made for grant assistance in the development of the potato seed sector. More generally, if a grower is required to spend €3,000 to grow an acre of potatoes and needs to sell the crop at approximately €200 per tonne but is lucky to get €150 or €130 per tonne, how can he or she be expected to continue to grow potatoes? Is there a message in this that the Government does not expect people to continue growing potatoes in Ireland and that the sooner they sell their land for development the better? That is the message which is being sent out. Potato growers are being asked to do the impossible, to grow potatoes for less than €130 per tonne.

Has the Minister of State addressed this problem? Will he meet the IFA and the growers with a view to resolving the problem so that growers can continue to survive? They cannot do so on speculation as to what they might sell. They need a firm commitment on what they can sell. Will the Minister of State help in this regard?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

Only last Thursday I spoke at the IFA-Teagasc national conference on potatoes and I met individual farmers both before and after my address. The Minister for Agriculture and Food, Deputy Coughlan, the Minister of State, Deputy Browne, and I have had a number of meetings with different stakeholders in regard to the potato industry. We recognise that it is a very valuable and important part of our agrifood industry. We met individual groups and industry figures representing the processing point of view as well as that of the growers. We also met the IFA national potato committee on a number of occasions. In addition, the Minister has met numerous potato growers and farmers in Donegal.

We are very conscious of the issues outlined by the Deputy. The figures I supplied in my initial reply demonstrate that there has been a huge drop in the growing pattern in Ireland. At the same time, the value of the crop is approximately €85 million and is very important. Recently, the Minister approved projects to the value of €6 million. Some time before that, projects to the value of €3 million were approved in regard to the upgrading and provision of new facilities. I do not accept the Deputy's argument that the Government is suggesting people should get out of the industry. The message we are giving to the farmers is that the industry has a future. Individual farmers are investing hugely in providing modern facilities with the support of the Department, which demonstrates that we have absolute confidence in the industry.

The fresh potato sector has been under pressure for some time. I visited Ballymoney Foods in north Antrim at the request of Seán Farren of the SDLP where I met the SDLP and DUP representatives with the management and workers of that factory. The facility is owned by farmers north and south of the Border. We are anxious that they will be able to extend their processing facility. When I was in the Deputy's constituency I visited some state-of-the-art facilities where huge investment is taking place and where produce is being processed to the highest standards. We have invested a great deal in the past number of years in providing new facilities.

We must improve value added potato products. Consumer eating habits have changed. There has been a growth in demand for pasta and rice and the prepared and convenience food sector has grown enormously. The number of meetings the Minister, Deputy Coughlan, the Minister of State, Deputy Browne, and I have had with different stakeholders in the potato industry clearly shows that we are determined to arrest the decline, at a minimum. We are also anxious that further investment takes place.

Members who come from a different part of the country where livestock and dairying are the predominant agricultural activities have often spoken out against milk quotas and EU regulation. However, Deputy Sargent might agree that the common market organisation for certain products has had benefits as well, in that it provides stability. Potatoes are one of the few agricultural commodities that do not come within the common market organisation. In 2003, there was a 16% growth in potato production at EU level. Such growth leads to over supply and poorer prices for individual growers. That is part of the problem.

Trevor Sargent (Dublin North, Green Party)
Link to this: Individually | In context

Production is decreasing. The amount of potatoes being sold in a number of retail outlets is increasing so there is a demand for the product. I accept what the Minister is saying but actions speak louder than words. Is there a grant for the seed development sector or can we expect one?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

Yes. We are giving particular attention to the seed certification sector. We have had meetings ad nauseam with the different stakeholders. Furthermore, we have agreed with Bord Bia a specific promotion this year for potato products.