Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 95: To ask the Minister for Agriculture, Fisheries and Food the number of farmers involved in pig production on a county basis; his views on whether there is an opportunity to expand this industry; if so, the way he will encourage such expansion; his further views on whether some of those already in production are experiencing difficulty with the banking structures; and if he will make a statement on the matter. [3546/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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A total of 2,465 farmers are involved in pig production. Details of the number of farmers on a county by county basis are set out in the table.

The pig sector accounts for approximately 6% of gross agricultural output. It is a significant employer both directly and indirectly, accounting for more than 7,000 jobs, many of which are in rural areas and small towns. The sector has the potential to develop further and make an even greater contribution to the national economy, export generation and job creation.

A development strategy for the pig sector, drawn up by Teagasc following consultations with a broad range of stakeholders, was published in January 2008. The document contains a comprehensive summary of the issues facing the Irish pig sector and proposes measures that need to be taken to position it for a successful future. Compliance with environmental protection legislation, increasing production efficiencies, pig health matters and research and technology transfer were all identified as areas in need of attention.

The objective is to have an industry that produces meat to the highest standards of quality and safety and would be internationally competitive, while having due regard for animal health and welfare and environment protection considerations. A steering group has been progressing the various recommendations of the development strategy. Following delivery of an interim report to my Department last week, I met the group to discuss its contents. Many of the recommendations are outside the direct remit of my Department and we will consult other relevant Departments and agencies about the recommendations made by the steering group.

The Government is conscious of the difficulties different sectors of the economy have in obtaining credit. It has taken a number of steps, including the guarantee scheme, recapitalisation of AIB and Bank of Ireland, nationalisation of Anglo Irish Bank and establishment of the National Assets Management Agency, to ensure banks are in a position to lend to the real economy. I have been in contact with the banks about this matter on an ongoing basis and will continue to discuss with them how the position can be improved for various segments of the agri-food sector.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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I thank the Minister for his comprehensive answer. Coming from one of the major pig-producing counties, Cavan, he will be aware there are serious problems in the industry.

On the issue of banking, did the Minister's meetings with the banks include the ACC and NIB? These are important banks for that area.

Does he accept that individual farmers in the business are under serious pressure at present? Would he advise any young person to start into the business as things currently stand? I appreciate that the Russian market has been opened up which may improve prices but what is the situation regarding compound feeds? What is the Minister's attitude towards the GM issue? Our farmers have to compete against others who use genetically modified crops.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I thank Deputy Crawford for his comments on the re-opening of the Russian market. We hope that will help to improve prices and grow the market. The Russian market available to our exporters is of substantial importance overall.

Regarding young persons, as Deputy Crawford will be aware, some months ago I launched a Teagasc pig husbandry scheme in Ballyhaise agricultural college. The course was over-subscribed and the participating cohort was very young. I understand that in Clonakilty where a similar course is being held it, too, is very well subscribed to by a young age group.

Regarding the banking sector, Deputy Crawford may be aware that on a number of occasions I have met with pig producers and millers from the northern half of the country, along with their advisers. The group explained to me that over the years millers acted as bankers to individual pig-farmers. Now millers are under pressure, credit-wise, and because pig-farmers are also under pressure there is delay in payment reaching the millers. I got that group of millers and farmers together to formulate a specific proposal. At those two meetings, individual pig producers and millers commented that as a general rule in the past neither group would sit in the same room as the other because they would not have shared the same viewpoint. However they shared the same viewpoint at those meetings. I met a large number of processors, millers and farmers at that meeting. Afterwards I met the Irish Banking Federation and put to it the proposal that had been given to me at the meeting and which we had discussed. Subsequently, my Department wrote to the IBF supporting the proposals that had been put forward by the group. My recollection of the meeting with the IBF is that all the major banks were represented by their chief agri-advisers and they included the two banks mentioned by Deputy Crawford.

Brendan Howlin (Wexford, Labour)
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I want to include a supplementary question from Deputy Sherlock.

Seán Sherlock (Cork East, Labour)
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Does the Minister acknowledge that some of the problems encountered by the pig and food industries are due partly to the fact that legislation on packaging has not been amended and that the issue of substantial transformation still impacts on the comparative advantage Irish producers might enjoy if the issue were to be sorted out?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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As the Deputy will be aware, some considerable time ago we put forward a proposal to the European Commission in respect of country of origin labelling for pigmeat, sheepmeat and poultrymeat. Unfortunately, the European Commission rejected our proposals and we were not allowed to proceed with them. Now the issue of adequate labelling is again under discussion in the Commission and we have put forward a very strong proposal in that regard.

Regarding the domestic market, which is important in the context of pork products, the Bord Bia quality assurance scheme is of huge importance to the sector and is very well supported by many of the producers and individual primary producers who want to see more use made of it.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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I welcome the Minister's comment about the banking situation. I hope he will make some moves regarding the GM situation too because our food compounders must be able to compete with others at the best possible price. I would not be as confident as the Minister that young people will rush into this business. My information is that only the very big producers are expanding at present. The smaller ones cannot afford to do so. That situation must be looked at.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Regarding Deputy Crawford's point and speaking of individual producers and about the industry in general, there are now much better on-farm facilities for pig production. Some years ago the sow-housing scheme was introduced and has been very successful. The farm waste management scheme was made applicable to the pig industry for the first time. During the course of the coming year we will introduce a new scheme with regard to loose housing for sows and that, too, will be an important investment scheme. There is considerable cost involved for the individual but in recent years grant schemes were put in place for the first time and have been important.

As to age groups, I speak to different groups of farmers from all sectors but I always remark that when I speak at an event related solely to pig production by and large a younger age group tends to be present than at meetings relevant to other sectors.