Holly Cairns (Cork South West, Social Democrats)
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13. To ask the Minister for Agriculture, Food and the Marine the steps he is taking to develop domestic and international markets for wool-based products such as insulation and fertilisers. [11631/23]

Holly Cairns (Cork South West, Social Democrats)
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It is fair to say that despite a long tradition of wool produce in Ireland, the wool sector has been significantly underappreciated and undervalued in recent times. Instead of having a robust and innovative rural sector, low prices and other uncertainties and Government policies have negatively impacted on sheep farmers and the wool industry. I recognise the progress made with the feasibility report and the wool council, but what measures is the Minister of State putting in place to support the sector?

Minister of State at the Department of Agriculture, Food and the Marine (Senator Pippa Hackett):

As the Deputy will be aware, despite wool's versatility and uses in many industries, wool prices remain low. To address this issue and seek a more favourable outlook for the wool industry, in March 2021, I initiated a comprehensive review of the industry. This review, which was a programme for Government commitment, concerned the potential demand for wool-based products, including insulation and fertilisers, in domestic and international markets. I set aside funding of €100,000 to carry out this review.

In July 2022, this programme for Government commitment was delivered with the publication of the wool review report. The report, which was compiled independently by the Agile Executive, contained a number of findings and recommendations including potential funding streams, market opportunities and multiple areas for additional research and development for wool. One of the main recommendations related to the establishment of an independent wool council, led by industry, that would develop and promote Irish wool domestically and internationally and bring together multiple stakeholders to foster collaboration, innovation and scaling activities in the wool sector.

It is envisaged that this council would be a forum where stakeholders can further examine and explore the potential uses for wool identified in the wool feasibility study.

In December 2022, a meeting of the stakeholders interested in forming a wool council took place. This group discussed their common aims, as well as agreeing to establish a working group to take the next steps in formally establishing the wool council. Officials from my Department also attended this meeting to outline the criteria needed to draw down the seed funding of €30,000, which I announced last July.

The next meeting of the wool council stakeholder group is set to take place in the coming weeks. At that meeting, the draft terms of reference will be presented and nominations for council officers will be sought. The establishment of the council is a vital step that will lead to new opportunities and greater returns for this natural sustainable product.

Holly Cairns (Cork South West, Social Democrats)
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I thank the Minister of State. I acknowledge the progress that has been made in this area. There is a more positive outlook, but we still have a long way to go before wool can be a strong contributor to rural economies. Besides woolen products, there is considerable potential for its use in insulation, fertiliser, packing and horticulture.

Given its versatility and former abundance in Ireland, especially in the west, the current state of the sector is a clear sign of policies that are not working. However, last year's feasibility report highlights the many challenges involved in making these potential avenues viable. Can the Minister of State outline the progress that she and the wool council have made in meeting the report's short-term goals, especially around improved training and creating an apprenticeship model for the wool sector? Can she also outline the progress made in examining the establishment of a wool testing facility and a wool hub?

Minister of State at the Department of Agriculture, Food and the Marine (Senator Pippa Hackett):

I accept the Deputy's acknowledgement of the progress that has been made. The council has only met formally once. At the next meeting, the terms of reference will be drawn up and council members will be appointed. I look forward to that and to assessing the progress that is being made.

The Deputy identified some of the findings of the wool feasibility study in the context of making use of wool. The list of those findings includes: brand development for Irish-grown wool; marketing of Irish-grown wool; the development of standards in respect of Irish-grown wool; determining the feasibility of establishing a wool-testing facility on the island of Ireland; and establishing wool hubs. These are still to be teased out. They will be necessary to strengthen this sector.

As the Deputy indicated, we have a history of wool production in Ireland. In light of the current climate, it is past time that we do what we can to support this sector and to see more wool being used. Wool production is sustainable, versatile and low carbon.

Holly Cairns (Cork South West, Social Democrats)
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Farmers and their representative organisations recognise the importance of the wool council and the feasibility study. They have also warned that what is proposed needs to be supported and driven by the Government in conjunction with them. Action in respect of the various short-term goals is obviously crucial at this point. Will the Minister of State elaborate on the measures she is putting in place to support the develop of co-operatives? The feasibility study stresses that there is significant merit in the co-operative model because it creates commercial scale in capacity that individual farmers can achieve. It also facilitates more early-stage processing. The latter would give producers greater control. Producers would be best placed to develop and implement education and training opportunities as well.

The medium-to-long-term plan involves the establishment of wool co-operatives. This aspect will require considerable preparation. Has work in this regard already begun? Is the Minister of State engaging with existing co-operatives in order to obtain guidance?

Marc Ó Cathasaigh (Waterford, Green Party)
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There are a number of other Deputies who want to come in with supplementary questions

Michael McNamara (Clare, Independent)
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In view of the fact that I have tabled a similar question on this matter, I welcome the opportunity to come in. Everybody accepts that wool has the potential to be a valuable resource. It was certainly treated as a valuable resource in the past and there are many uses which it can be put to which it was put to in the past and also many exciting new uses, for example, around insulation. At the moment, it is a hindrance. It is a nuisance. It is almost valueless, as it stands, until the Minister of State's wool council proceeds with its work and until markets are developed.

Farmers just want to get sheep sheared at present. The wool is almost worthless to them and it is discarded. In order to ensure that sheep are sheared in a way that preserves wool in such a way that it can be utilised, surely certain measures will have to be put in place. I refer, for example, to the introduction of a contribution in respect of the cost of shearing. Are there any plans to do that? Are there any plans to make sure that wool is presented in an optimum way in order that it will retain whatever value it has?

Seán Canney (Galway East, Independent)
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I also tabled a question on this matter.

Galway Wool was set up by Ms Blatnaid Gallagher. That is an example of where there is huge potential in wool. As Deputy McNamara said, it is not so much that wool is almost useless at the moment, it is worse than useless because it costs more to shear a sheep than the price one gets for the wool. Back in the day, wool was a big source of income for a small family farm in the west of Ireland.

I applaud the fact that wool council is there but we need to create a sense of urgency. Even in the interim, with the way the sheep sector is going, there should be some support towards the cost of sheep shearing for farmers, particularly the way the input costs are. We spoke earlier about sheep farmers and their viability. It is important that we would do that. The Minister of State has my full support in respect of this matter.

Catherine Connolly (Galway West, Independent)
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I came from a committee meeting in order to come in briefly on this matter. It is something I have followed up on. It is now nearly three years since the Government committed to doing something in this area. A sum of €100,000 was made available for the feasibility study. The latter is concise in parts and unfocused in others. What is clear, however, is what was recommended, namely: the establishment of a wool council; training to be provided in respect of wool handling, presentation, sorting and grading; data collection; creation of an apprenticeship; and the establishment of wool co-operatives. I do not have time to go through it all. It was precise. There has been €100,000 spent. Another €30,000 was allocated for a wool council. Has that been drawn down? Who will drive this? Does the Minister of State envisage the wool council driving it? Does she envisage the Department of Agriculture, Food and the Marine having a primary role? I am of the view that it should have such a role. We need to turn this into the good news story that it is. Earlier, Deputy Carthy or one of the other Deputies raised the problem of farmers getting very little money. This is one area with significant possibilities, and that is the clearest point set out in the study.

Minister of State at the Department of Agriculture, Food and the Marine (Senator Pippa Hackett):

It is clear that issue raises passions in people. I am a sheep farmer. I have farmed with my husband for 25 years. I know full well the challenges with trying to sell wool. I have seen prices dropping off over the past two and a half decades. I concur with all the concerns raised.

Ultimately, the market is just not there. We can jump the gun. We can establish co-operatives and all these things, and we can have our wool presented in a certain way. However, making sure there is a market is the aspect we have to get right. Interest, either domestically or internationally, in using wool is what we have to generate. That is the difficulty.

It is unfair to state that the Government has not done anything. We did what we said we would do. We established the study. We put €100,000 into that. We have put aside €30,000 in seed funding for the council. The council will drive it. We need the industry. We need the stakeholders involved on board with this to establish the best possible outcomes.

As an anecdotal point, although it will not save the world, there is a slight premium for organic wool as compared with non-organic wool at the moment. It is very small. There is a slight shift in terms of the funding.

I would make one finally point on the welfare.

Marc Ó Cathasaigh (Waterford, Green Party)
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I thank the Minister of State. We are well over time.

Minister of State at the Department of Agriculture, Food and the Marine (Senator Pippa Hackett):

There were four points. I am sorry, I am trying to address everyone's concerns.

Sheep shearing is a welfare issue. First and foremost, it is about the welfare of the sheep.

Marc Ó Cathasaigh (Waterford, Green Party)
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I have to move on.

Minister of State at the Department of Agriculture, Food and the Marine (Senator Pippa Hackett):

The wool is a by-product, but we have to do what we can to secure a suitable price for it.