Jim O'Keeffe (Cork South West, Fine Gael)
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Question 102: To ask the Minister for Agriculture, Fisheries and Food if her attention has been drawn to the threat to the livelihood of pig farmers due to the increase in feedstuff prices; and her proposals in this regard. [21570/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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I met representatives of the pig industry recently and they made me fully aware of the difficulties currently being experienced by those farmers involved in the industry.

There is no doubt that the conditions surrounding the availability and pricing of feed materials have changed dramatically over the last six months. A number of factors have contributed to this rise in feed prices. These factors include the increased demand for feed materials generally and from the bio-fuel industry, particularly in the USA; unfavourable weather conditions worldwide which affected many of the major cereal growing regions; and the lack of synchronisation between the GM authorisation processes in the US and the EU.

Industry sources have indicated that the demand from the bio-fuels industry has significantly reduced the availability of feed materials for pig feed. The increase in the price of wheat is of particular significance. Efforts to secure alternative supplies to compensate for the shortfall caused by the weather conditions are hampered by bio-fuel industry demands. While whole maize is considered a suitable substitute for wheat its availability and price has also been affected by the demands of the bio-fuel industry. In addition the cost of soya has been forced up because of consequential increased demand.

The cost of inputs must have a knock-on effect to the consumer. Consumers will have to pay somewhat higher prices for their food products and producers will have to strive for even further efficiency gains. That said, the current high input costs cannot be sustained longterm into the future. However, I believe that cereal production in Ireland and in the EU will increase significantly in response to the market situation. This should be facilitated by the availability of set-aside land for cultivation in 2008. I hope also that the cereal producing regions will not suffer the weather conditions that pertained this year.

Efforts to substitute whole maize for the more expensive wheat are also hampered by the lack of synchronisation in the GM authorisation processes used in the US and the EU. This asynchronisation has caused US exporters and EU importers to act with caution because the consequences of detecting traces of EU unauthorised GM events in imported consignments are that the material has to be withdrawn from market. There is a real danger here that if the Commission does not act urgently in coalescing the two authorisation systems, the US exporters will continue to look to emerging feed markets in other parts of the world thereby giving rise to serious feed problems for the EU livestock industry in the not too distant future.

However, it is in this area of making more whole maize available for pig and poultry rations that I see the greatest potential for action. Indications are that new GM maize varieties will be introduced into the US cropping pattern year on year over the next number of years. If these varieties are not authorised quickly within the EU, the feed industry here will not be able to avail of the increased quantities of whole maize. A similar situation is set to develop in the use of soya from 2009 onwards with even more serious consequences. I am pleased the Commission is addressing this issue with its recent very worthwhile publication, Economic Impact of Unapproved GMOs on EU Feed Imports and Livestock Production.

I intend to remain in close contact with the pig industry representatives.

Jim O'Keeffe (Cork South West, Fine Gael)
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The Minister's reply is similar to her reply to an earlier question. Does she have any additional information for the House?

Mary Coughlan (Donegal South West, Fianna Fail)
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I met representatives of the pig industry and I share their concerns, as do many Members of the House. We must examine many other issues apart from that of feed. Pigmeat is a good value and wholesome product and I am investing further in its promotion. I am on record that we will all have to participate to reassure pig farmers that we have an industry. Something will have to be done about getting higher prices for pigmeat so that with efficiencies at farm level farmers are recompensed for their produce.

Jim O'Keeffe (Cork South West, Fine Gael)
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I have three questions before I pass over to my colleagues. In regard to Herculex, do I detect from the Minister that the Government was in favour of this policy? If that is the case why did we abstain and take the slíbhín approach where we are glad the Commission is bringing it in through the back door. Is it not a fact that Government policy on GM, as enunciated by the then Minister in response to a question from Deputy Trevor Sargent this time last year, is that we support the genetic modification, subject to maintaining a commitment to food safety, on the basis of scientific risk assessment and management? On that basis, is the Government in favour of the European Union catching up with the US on synchronisation?

Getting back to home base, pig producers from west Cork and those involved in poultry and eggs said that they cannot get extra money from the multiples. The Minister must be aware of the cruel power of the multiples. Farmers are faced with higher costs as a consequence of the extra payments and are being squeezed out of business.

Mary Coughlan (Donegal South West, Fianna Fail)
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I decided to abstain on the vote on feed.

Michael Creed (Cork North West, Fine Gael)
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Because of Deputy Trevor Sargent——

Mary Coughlan (Donegal South West, Fianna Fail)
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I am the Minister.

Michael Creed (Cork North West, Fine Gael)
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——and what was in the programme for Government.

Trevor Sargent (Dublin North, Green Party)
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That is for growing.

Mary Coughlan (Donegal South West, Fianna Fail)
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I have the utmost respect for this House. The decision by Ireland to abstain on the EU Council vote on GM animal feeds is in line with that of France and Italy, which also abstained. These are major buyers of Irish produce. Had Ireland voted in favour, it would not have affected the outcome of the vote. The Government's objective is to seek to negotiate an island-wide GM free zone. It is not about banning imported GM feed, it is about not growing GM crops and not proliferating GM pollen, seed dispersal and superweeds. In line with Government policy, I have set in motion a number of other Departments to elaborate this commitment and to tease out the implications from a policy perspective. That is the Government decision.

On the issue of synchronisation, previous to this Government, as the Deputy knows, I expressed grave concerns about the need for synchronisation. Waiting for three years for something to happen is very problematic for farmers because it creates a situation whereby the feed importers are afraid of purchasing ahead of time.

Jim O'Keeffe (Cork South West, Fine Gael)
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Some of them will not be in business.

Mary Coughlan (Donegal South West, Fianna Fail)
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The Deputy is right that there are grave concerns about the pig industry. It is of significant concern that supermarkets determine the price level at which pigmeat is sold. Anyone who has gone to the butcher or to the shop will have seen how cheap pigmeat is. That is not sustainable. We must ensure that the industry is sustainable and I will do everything I can to support the pig industry. It is up to everybody to do the same.

Noel Coonan (Tipperary North, Fine Gael)
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I wish the Minister and the Ministers of State, Deputies Wallace and Sargent, well. The Minister referred to synchronisation, but she should address the inconsistency of allowing food, meat and materials into the country while denying the entry of feedstuffs.

Had the Minister scientific evidence in coming to a decision to abdicate her responsibility by not voting, because in effect it means that the Minister put the Green Party before the farmers? The Minister has kowtowed to the Green Party. She had looked for this measure but when the opportunity arose, she was unable to take it.

Brendan Howlin (Wexford, Labour)
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I call on Deputy Crawford to put his question.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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I listened to the Minister's appeal for everybody to come together on this issue. That was similar to the appeals on the nitrates directive, and as a result of the implementation of that directive some of the small pig producers have gone out of business. We want action. I represent a constituency that produces the highest level of poultry and pigmeat in the country. Farmers are waiting in anxious anticipation of practical measures. I know one can say it does not affect this or that, but the millers tell me that they are not in a position to buy product as they used to be. If we cannot buy product in the US and other places, the product that is produced from that grain in some other country will replace our products and our people will eat it.

Mary Coughlan (Donegal South West, Fianna Fail)
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The price of feedstuff is a worldwide issue and is based on biofuels, increased population and a very competitive world market. India and China are the largest buyers of food. It is also based on weather conditions and many of the grain growers have lost their crops in desperate weather. It is on that basis that we will move ahead with the issue of setaside in 2008 for the production of cereals. On the issue of synchronisation and GM, Herculex will be passed by the Commission. There are two other varieties in the ground in the US and the process of consultation with the Europeans on recognition has not started. That is a serious issue. There is also the issue of access to maize on the basis that some of these GM products will not be available. There will be competition in the United States for biofuels initially and for farmers who feel the easier option is not to separate varieties but sell the combined product to China and India. We will work towards addressing these concerns at the beginning of next year.

Deputy Crawford is correct that the pig and poultry sectors have been very difficult because of many of these issues on world feed price markets. We will work with the industry to see what we can do in terms of supports.

Michael Creed (Cork North West, Fine Gael)
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I agree with the Minister that the global aspect impacts on this issue. It brings to centre stage the issue of food security and I hope the Minister will pursue this point at the CAP health check. I am appalled at the naivety of the Minister and the Minister of State with responsibility for food, Deputy Sargent, who stated the issue about voting with the French. The French are self-sufficient and they want Fortress Europe because it will drive up the price of their produce. They do not want imports. To argue that we were with the French is illogical and a disservice to Irish agriculture. On a practical issue, let me raise the spreading of pig manure and fertilisers and the application of the nitrates directive and REPS farmers. The cost base of pig producers could be reduced if they were able to use lands in a REPS scheme for the disposal of pig slurry rather than be obliged to spread it.

Brendan Howlin (Wexford, Labour)
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I must call the Minister as we are over time.

Mary Coughlan (Donegal South West, Fianna Fail)
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I advise the Deputy that we worked towards that and the proposal was sent to the Commission by me and two other colleagues.

Michael Creed (Cork North West, Fine Gael)
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The Minister must have a big postal bill because everything we have raised today is going to the Commission.

Mary Coughlan (Donegal South West, Fianna Fail)
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Perhaps the Deputy should go to the Commission to inform himself of what has to go to the Commission. The nitrates directive must be implemented in consultation with the Commission. I made that proposal and it was agreed but it was not accepted by the Commission. It was thrown out. Since then, the industry has been working with the Department to explore at a sectoral level how to address the nitrates directive and its imposition.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Are organic farmers included?

Mary Coughlan (Donegal South West, Fianna Fail)
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There are many farmers from Monaghan involved and I am sure they will be more than helpful.