Dáil debates

Thursday, 2 May 2013

4:20 pm

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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I am pleased the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney, is present for this debate. I compliment him on intervening in the fodder crisis, which has reached extremely serious proportions. According to one school of thought, the crisis would have been avoided if we had experienced more sunshine earlier in the year. Grass growth is approximately six months behind in practically every area of the country owing to climactic conditions dating back 12 months or more. For example, 2011 was not a productive year for grass growth. While the recent weather may be due to global warming, conditions in the south west have created a catastrophe.

Last November, when County Kerry was experiencing extremely high levels of rainfall in comparison to the east, I pointed out to the Minister that tonnes of hay were being brought into the county. I understand a dealer or merchant from County Wicklow was collecting hay, probably in counties Carlow, Wexford and Waterford, and making daily deliveries to County Kerry.

The dealer's lorry seemed to be operating around the clock, with two drivers on hand at all times. This illustrates the serious and extreme difficulties that people were then experiencing. At that time, I inquired of the Minister as to how matters were likely to be in January. It is now May and the Minister's intervention has helped to ease the situation. However, there is still great concern in many remote areas where the co-operative movement may not be as strong as elsewhere and where distribution is not as straightforward. Farmers in such areas are faced with a terrible dilemma.

I compliment the IFA on the efforts it is making and on the amount of money it is expending. I welcome the co-operative system that has been introduced in recent days. This is a great initiative. I compliment those farmers who were fortunate to have surplus fodder and who co-operated with their neighbours and with farmers in other parishes. What has happened recently shows that the co-operative spirit is still present in this country. The co-operative movement was initiated by Horace Plunkett in the 19th century and the spirit behind it remains among the people, which is good.

Tomorrow is supposed to be the final closing date for the transport scheme. I ask the Minister to extend the distribution system to the marts and private merchants in order that €1 million allocated might be fully utilised. If there is a need to extend it by a further couple of weeks, then this should be done. Serious consideration should be given to a further extension because many people remain in dire straits.

4:30 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I thank the Deputy for raising this issue because it presents me with the opportunity to clarify a number of matters. It is rare that I am asked during a Topical Issue debate to do something which I already did the day before. However, that is the case in this instance. Yesterday, we extended the deadline relating to the transport subsidy for an additional week until 10 May. That said, this is a good time to explain to people the other things that are happening.

This is a genuine crisis for many farmers and it has resulted in a great deal of stress in a large number of farm households throughout the country. My Department has been involved in trying to manage this very difficult situation for many months. This situation did not just arise in the past two weeks. Last year's very poor summer - with high levels of rainfall and a lack of sunshine - resulted in poor and smaller quantities of silage. We were aware in August and September of 2012 that we were going to incur huge expense in the context of being obliged to supplement the feed for beef and dairy herds through the winter. The onset of winter came early, which meant that grass growth ceased earlier than normal. In addition, it was extremely wet and people were obliged to bring their animals indoors. Some individuals had to keep their animals indoors during the summer and the autumn. We worked with farmers, in conjunction with Teagasc, through the winter months to extend and maximise the potential of their fodder. However, the winter lasted six weeks longer than normal. As a result, grass growth is five weeks behind the level at which it should be at this time of year. That has resulted in a real and measurable fodder shortage with which we are trying to deal.

In the context of our response to the crisis, any farmer who is in an emergency situation and who is of the view that he or she cannot feed his or her cattle because he or she cannot access or cannot afford to buy fodder should contact my Department immediately on Callsave 1850 211 990. No animal should starve as a result of a lack of fodder. We will intervene to ensure that animals do not starve and we will pay for the feed required. The Department has received over 400 calls to that number. Approximately 60 of these related to extreme situations in which we were obliged to intervene through our local veterinary offices in order to ensure that animals were fed. We make such interventions on a confidential basis and, in such circumstances, farmers should feel comfortable contacting us. We referred the other 300 plus cases to co-ops which are importing and providing feed.

What has happened in recent weeks in the agrifood industry has been extremely impressive. People and organisations have come together and the dairy co-ops have already imported more than 300 loads of hay. Each of the 20 bales contained in these loads can feed approximately 150 animals a day. This means that, to date, 500,000 animals have been fed by means of the hay that has been imported. In addition, there has been a significant increase in the amount of maize being imported by Glanbia through Dublin Port. The response has been quick and it is being encouraged by our transport subsidy, which has been extended for an extra week. We have informed non-dairy co-ops that want to bring in large quantities of feed that if they can provide the same type of billing system as that used by the dairy co-ops and if there is a genuine lack of availability of hay through such co-ops in their areas, then we will deal with them on a case-by-case basis.

There is assistance available for farmers who are in emergency situations. These individuals should contact the Department. I can inform farmers who are seeking additional hay that there is more on the way. The shipments that will arrive next week will represent a significant step up on the amounts already imported. In the meantime, grass has begun to grow again. Roughage is the issue when it comes to herds. Our focus in the context of spending public moneys has been to deal with the problem that exists, namely, the need to import large volumes of hay into the country. I am glad to inform the House that our efforts in this regard are working.

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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I thank the Minister for his reply. He has sent out a strong message to everyone involved in the industry that crises of this nature can be tackled if there is goodwill among people. The response to this crisis was organised very quickly and we must ensure that the momentum is maintained. I thank the Minister for responding positively to the parliamentary question I tabled on Tuesday last by extending the transport subsidy to 10 May. I had requested that it be extended to 15 May but what he has done is still a wonderful and very appropriate gesture in these challenging times. I also requested that the distribution system be extended to the marts. Those who own and manage the marts have their fingers on the pulse and are aware of the position in their localities. In view of the unpredictability of our weather, we do not know how long this crisis will last.

Another matter I should refer to is the scarcity of lorries suitable for transporting hay. It would be great if lorries with flat trailers could be used in emergencies. Will the Minister consider advancing single farm and other relevant payments to the farmers who have been badly affected by the crisis?

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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On each occasion I give an answer, I am presented with further requests. This is a serious matter and the Department and the industry have responded to it together in a very comprehensive way. Help is on the way for the many farmers who continue to experience significant shortages of fodder.

In an extreme situation, we will intervene and feed their animals until they can afford to do so. Co-ops and, in some cases, marts are importing large volumes of fodder and trying to get it out to farms as quickly as possible. This will continue.

We have discussed the matter with a number of banks. The key banks have attended long meetings in my Department. They assure me that they want to lend money to farmers as bridging finance to get over the credit hump that many farmers experience after a difficult winter. The main co-ops are extending a great deal more credit than they normally would. We are undertaking an initiative to try to return the grazing season to normal and to encourage farmers to buy and put out fertiliser. During May, all co-ops are providing interest-free credit to purchase fertilisers in order to encourage farmers to return to a normal grass growing season.

I thank the farming organisations, which have been supportive during this difficult time. I thank the Irish Dairy Board, which has responded to our requests for help by putting a significant fund in place to support dairy farmers. As of today, SuperValu has announced a significant fund to support farmers who are struggling because of fodder shortages. Whether it is retailers, the Irish Dairy Board, co-ops or farming organisations that are putting money behind their words or whether it is my Department and the arms of the State, including Teagasc, that are working with farmers, there is a significant collective effort to get farmers through a difficult number of weeks. We will pull through. Given the strong prices for beef, dairy and other agrifood commodities, we can salvage this year, but we need to get through the coming weeks. To do so, significant volumes of fodder need to be imported. This is happening.