Dáil debates
Thursday, 20 February 2025
Importance of Agrifood to the Irish Economy: Statements
6:10 am
John McGuinness (Carlow-Kilkenny, Fianna Fail)
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We now have statements on the importance of agrifood to the Irish economy. I call on the Minister for Agriculture, Food and the Marine, Deputy Martin Heydon.
Martin Heydon (Kildare South, Fine Gael)
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I congratulate the Leas-Cheann Comhairle on his elevation to his very important role. I look forward to working with him in the Dáil term ahead. I congratulate him and his family on a very prestigious honour.
I welcome this opportunity to speak to the House on the importance of agrifood to the overall Irish economy. In a week in which the European Commissioner for Agriculture and Food, Christophe Hansen, has published his vision for agriculture and food, I believe it is a very timely debate and discussion to have in the House. As Ireland’s largest indigenous exporting sector, the agrifood sector is made up of thousands of farmers, fishers and foresters, who day in, day out produce the highest quality food and raw materials. Their work and the work of those in our manufacturing sectors is something to celebrate. It is something to be proud of and something to work to protect.
It is an honour for me to take up the role of Minister for Agriculture, Food and the Marine and take responsibility for these sectors. It is an immense privilege, and I intend to do everything within my power to help grow and develop the sector. My passion and grá for farming were instilled in me from a young age by my mother in particular and it has stayed with me to this day. It is a passion I will bring to this role each and every day. I want to communicate a fresh understanding of what it is farmers, fishers, foresters and the food industry contribute to Irish society and the economy. This is a sector that drives economic growth throughout Ireland, particularly in rural and coastal communities.
We need to better explain the contribution the sector makes. Its roots run deep. There is not a parish in the country that is not enriched by the contribution made by farmers, or where some small business does not depend on this sector for its existence. The sector is responsible for the stewardship of 4.5 million ha of agricultural land and more than 800,000 ha of forestry. It consists of 133,000 farms, 2,000 fishing vessels and aquaculture sites and some 2,000 food-production and beverage enterprises. It employs more than 171,000 people, representing 6.4% of the total workforce but a much greater proportion in rural and coastal areas. The agrifood sector's performance is a testament to the dedication of people working across farms, fishing vessels, aquaculture sites and food and beverage enterprises in Ireland. Their hard work and expertise are the driving force behind the agrifood sector’s success.
Ireland’s agrifood produce has a globally renowned reputation for quality and safety. Irish agrifood exports reach more than 180 countries, with approximately 90% of our beef, sheep meat and dairy products destined for international markets. We have a livestock sector built on a unique grass-based production system. Global demand for high-quality, nutrient-dense food is increasing with growing populations, urbanisation and affluence. We are ideally placed to play a role in meeting this demand.
Recently published CSO figures show that Irish agrifood exports reached a record value of €19.2 billion in 2024. This is an increase of more than 6% on the value achieved in 2023 and an increase of 1.6% on the previous peak levels achieved in 2022. To put this achievement of €19.2 billion in 2024 into context, it represents an increase of 58% in value from €11.6 billion in the decade since 2014, and a doubling from €8.9 billion in 2010, prior to the establishment of the ten-year Food Harvest 2020 strategy.
While the exports of the multinationals are crucially important to the economy, agrifood is the bedrock of our exports. As someone first elected as a Teachta Dála in 2011, I will never forget the role agriculture played in reviving Ireland’s economy during the last downturn. The sector has an enormous multiplier effect in the wider rural and local economy, ranging from 2.5 for beef and 2 for dairy and food processing, compared with 1.4 for the rest of the economy and a multiplier of just 1.2 for foreign-owned firms. Agriculture and agrifood is a sector that is forward-looking, dynamic and innovative. We have to project this image not only because it is true but because what people from outside the sector think really matters. I believe if the average consumer could see the innovation and ingenuity at the heart of our food production system they would be blown away.
I am delighted the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Grealish, has a specific focus on supporting the sector in this work, through his responsibilities for food promotion, new markets and research and development. I know he will continue the momentum of building a modern, outward-looking sector for the future.
Each production sector makes a value economic contribution to the overall agrifood sector in Ireland. The seafood sector provides more than 15,000 direct and indirect jobs across fisheries, aquaculture, processing and ancillary sectors in Ireland. In 2024, the value of Irish seafood exports was €592 million. Over the five-year period from 2020 to 2024 in excess of €800 million was made available to the seafood sector, which included investment of almost €160 million in State-owned public marine infrastructure. The Government will pursue all avenues to increase fishing opportunities for our fishers, while maintaining sustainable stock levels based on scientific evidence. We will also support the inshore fishing, aquaculture and processing sectors. The Minister of State, Deputy Dooley, will lead the development of a dedicated strategy for the development of this vital sector.
The forestry sector accounts for almost 11.6% of our land area. While still below the EU-27 average, forest cover in Ireland is estimated to be at its highest level in more than 350 years. Latest figures for employment in the forestry sector, including logging and the manufacture of wood and wood products, stood at nearly 6,500. Ireland exported more than 1.4 billion tonnes of forestry and wood-based products to more than 80 countries in 2024, valued at €634 million. It is a sector that has felt the brunt of Storm Éowyn. I and my colleague, the Minister of State with responsibility for forestry, Deputy Michael Healy-Rae, immediately established the forest windblow taskforce, bringing together all stakeholders to assist those whose forests have been affected and who are faced with a major clean-up operation.
It is expected that a satellite imagery assessment being undertaken by my Department and Coillte on the private and public forest estates will be completed very shortly. This will give a more accurate picture of the scale of damage, which appears to be significantly greater than that of Storm Darwin in 2014, which was significant in itself. The satellite imagery and assessment of the scale of the damage will inform any future action to be taken. For those who already have a clearfell or thinning licence as well as a forest road licence, these may be used immediately to clear sites. Early figures that have come back from some private forestry companies indicate that more than 50% of forests that have been damaged already have a felling licence. For those with licences either in the system or yet to be submitted, the Department will prioritise these as we explore further options for a simplified approach, taking account of all EU environmental obligations. We must also be mindful that trees which have blown over have an economic value to the landowner. We want to assist them in realising that value. I and the Minister of State, Deputy Healy-Rae, remain committed to supporting the sector through this very difficult period and long into the future.
Looking to animal and crop production, early estimates for output, costs of inputs and farm income in 2024 are favourable.
After a difficult start to 2024, the most recent Teagasc estimates forecast an increase in farm incomes in 2024. According to the Teagasc outlook, the average family farm incomes in that year are expected to recover by 49% to €29,200, with all production systems represented trending positively. It is either wise or foolhardy that we would make predictions when it comes to agricultural prices, but the latest indications for 2025 from Teagasc are positive. Family farm income is forecast to rise by a further 22%, with increases driven mainly by improved output value. None of this implies that we should deny the challenges facing the sector. There are things we need to work on and address to ensure our sector continues to deliver for farmers, consumers and the economy.
The agri-climate rural environment scheme, ACRES, and resolving the challenges farmers have faced with payments are top of my priority list. More than €428 million has issued to farmers in respect of their participation in ACRES to date. This includes advance payments of €182 million to 42,128 farmers in respect of their participation in the scheme in 2024. This figure represents just over 78% of all farmers in ACRES. It does, however, mean that just over 12,000 farmers are still awaiting their advance payment for 2024. Included in this cohort are 2,764 farmers who have still to receive their balancing payment from 2023. While they did receive an interim payment last year to acknowledge that, I acknowledge the significant frustration and challenges for those farmers who have not received clarity or who are awaiting payment. Farmers are a resilient group and, like a lot of good business people, they can deal with most things that are thrown at them when they know what it is they are dealing with and when they know the timelines and impediments. That is what we must resolve.
There are a number of issues affecting payments. As I delved into this in my first month in the role, I realised these include instances where farmers have applied to transfer their contracts, issues with regard to the submission of scorecards for the results-based payment, and the completion of outstanding IT functionality. Where the impediment is on our side in the Department, if extra resources are needed, I am very clear that they will be found and we will do everything we can to get this addressed as quickly as possible. This work is being prioritised and it is my priority to have outstanding cases resolved as quickly as possible. Payment runs are taking place fortnightly and every case that gets cleared goes in for the next payment run within that 14-day period. It is vital that farmers' confidence in ACRES is restored with permanent solutions found to these issues so that they do not arise again in future payment runs. I have instructed officials in my Department to issue regular online updates over the coming period on the progress being made. Balancing payments in respect of farmers’ participation in the scheme in 2024 will commence as scheduled in May, and it is my determination that the majority of outstanding payments will be resolved by this point, with the most complex cases finalised in June at the latest.
Looking at the performance across some of our key farm production sectors, dairy, as our largest and most diversified agrifood category, serves 140 markets and accounts for 34% of Irish agrifood exports. Ireland is the eighth largest exporter of dairy globally, with 40% of produce exported destined for markets outside of the UK and the EU. The nitrates derogation is a major issue of concern for the sector. This Government will do everything in its power to retain the nitrates derogation. I am committed to advancing the best possible case to renew the nitrates derogation upon which so many farmers and surrounding sectors depend. I do not underestimate the challenge of this in circumstances where most member states do not avail of that derogation. There will be difficult choices and decisions to be made. I am confident, however, that the unprecedented engagement across the entire agrifood industry between my Department, farm bodies, industry and State agencies will all help drive improvements in our water data. Farmers throughout the country are already engaged in action to mitigate the impact of agriculture on water quality. The most recently published Environmental Protection Agency, EPA, data show significantly reduced nitrates concentrations in our rivers in the first half of last year. We need to see the same levels of commitment across all sectors, including wastewater treatment, and in the coming weeks a Cabinet committee on water quality, chaired by the Taoiseach, will sit for the first time. This will bring a whole-of-government approach to these issues and ensure farmers are not left to shoulder the burden alone.
Looking at the beef sector, Ireland exports close to 90% of the beef produced. Beef exports amounted to €3.1 billion in 2024 and accounted for 16% of total agrifood exports. Global market prices for beef were strong in 2024, and demand is expected to further increase in 2025, partially driven by positive consumer sentiment and tightening supply in other areas. In 2024, sheep meat accounted for €393 million in exports by value, with around 85% of Irish sheep meat exported to more than 30 markets. The EU market remains the primary outlet for Irish sheep meat, with France accounting for one third of all exports by value. Global demand is expected to exceed global supply in 2025. Across both the beef and sheep sectors, supports provided by our Department include the national beef welfare scheme and suckler carbon efficiency programme, the sheep improvement scheme and the national sheep welfare scheme, and they all make an important contribution to farmers' incomes. We can only achieve a sustainable sector if the three legs of that sustainability stool - economic, social and environmental - are all in balance. Farmers cannot go green if they are in the red. That is why I am committed to supporting farm incomes. An increased Vote provision of €2.1 billion in 2025 will allow my Department to provide increased targeted supports for the beef, dairy beef and sheep sectors in 2025.
In recent weeks, I have attended a number of farm organisation AGMs and met with a wide range of farmers. One issue that was raised with me repeatedly was the EU-Mercosur agreement. This is a particularly difficult issue for the Irish beef sector. I am in favour of free trade because it has been good for Ireland and Irish farmers in the context of exporting 90% of what we produce. In every trade deal, however, Ireland has consistently highlighted the need for a level playing field and that the EU-Mercosur agreement should include legally binding commitments on sustainability, including climate, biodiversity and deforestation protections. I raised these concerns directly with my counterparts across Europe at the AGRIFISH Council meeting on Monday, 27 January. At the heart of my opposition to this deal, beyond even the economic aspects, is the need for a consistency of approach. EU farmers are subject to complex regulations requiring them to farm in a sustainable manner. It will be difficult to explain to EU and Irish farmers why preferential access is being given to Mercosur countries if we are not satisfied that its farmers are subject to the same requirements. I am committed to working with like-minded EU countries to stand up for Irish farmers and defend our interests in opposing the current Mercosur trade deal. A blocking minority of 35% of the EU population would be needed to prevent the Mercosur trade deal from going through, so acting alone, with our 5 million population, is not going to decide this. France is opposed, however, and Austria is in that space. What the likes of Italy and Poland do really matters, and that is why we continue to engage with those like-minded countries.
Returning to the different sectors, Irish pigmeat exports exceeded €888 million in 2024. While the proportion of primary pigmeat exports destined for the UK and the EU has grown significantly, international market demand has declined in recent years. The sector returned to profitability in 2023 and 2024 following significant challenges in 2021 and 2022, and it is expected to continue to deliver profitability into 2025. Poultry exports were €292 million in 2024, accounting for 1.5% of total agrifood exports. A reduction in volumes exported is attributed to growth in domestic demand. The favourable view of poultry as a relatively low-cost, high-protein option is expected to support continued consumption globally into 2025. The rising risk of avian influenza is something that does greatly concern me. We are dealing with a very live situation in this space at present. We have introduced a compulsory housing order, and I am urging all flock keepers and poultry farmers to observe the highest standards of biosecurity to help combat this threat.
The tillage sector forms a critical part of the overall Irish agrifood ecosystem. Exports of cereals and cereal products, comprising almost 4% of total agrifood exports, amounted to more than €760 million in 2024. For cereals, there was a 25% increase in gross margins in 2024 compared with 2023 and overall increased margins due to increased support payments, price rises and reduced input costs. Margins are variable and crop specific. However, continued improvements are expected in 2025. I say this in the context of recognising how difficult the years 2023 and 2022 were.
To date my Department has paid out more than €5.6 million under the straw incorporation measure, almost €9.7 million in protein aid and €32.4 million under the tillage and horticulture support scheme. These payments are a critical support for tillage and underline the importance of the sector to this Government. Today I am announcing a further €1.9 million in payments under the baling assistance payment, which was introduced in summer 2024 as a once-off measure to support tillage farmers to produce straw for bedding and fodder.
While noting the excellent performance of our agrifood sector, we must be mindful of sustaining our farming sectors. There remains a challenge of attracting young people and new entrants into a career in farming. Ageing demographics in the farm sector are a widely recognised issue both nationally and at EU level. The future of Irish agriculture depends on attracting the next generation of farmers. This is one thing I will passionately pursue over the coming years. I believe it must be a two-pronged approach. The older generation, who have given a lifetime to the sector and possess significant corporate knowledge, must be supported while viable pathways are created for young people to enter the sector.
Nationally, there are strong taxation measures in place facilitating generational renewal and significant supports for young farmers under the CAP. However, the proportion of older farmers is still growing. While we already do a lot in this space, we need to do more.
Last October, an independent commission on generational renewal in farming was established. This commission is examining all aspects of this issue because it is a very complex space, with emotional and financial factors in play. Its aim is to ensure we make best use of the policy tools and other supports available to encourage young people into the sector. The commission will bring forward its report on potential options for the future by the end of June this year and this will form the basis for future policy development.
Similarly, improving gender equality in our agrifood sector is essential to maintaining and building a strong agrifood sector. In 2024, the women in agriculture working group was established to oversee the implementation of a 12-point action plan arising from a national dialogue on women in agriculture. The group meets regularly to assess and monitor progress and will report shortly to the Food Vision high-level implementation committee. Achieving the necessary changes will take time, but this plan is a practical step towards a more inclusive, gender-aware future for the sector and one I am committed to progressing.
I want to reflect on future policy at European Union level. Ireland will hold the Presidency of the European Union in the second half of 2026. This will be a critical juncture in the development of a Common Agricultural Policy for the period after 2027. The publication of the European Commission’s Vision for Agriculture and Food comes ahead of the publication of legislative proposals for a new CAP later in the year. Many of the themes I have touched on today are reflected in the document. It acknowledges the important contribution that agriculture makes to competitiveness, innovation and rural development across the EU. It recognises the essential role of agriculture in the context of the EU’s climate action and environmental protection objectives. Perhaps most importantly, it recognises that food security is fundamental to the EU’s economic security and should never be taken for granted. There will be extraordinary pressure on the EU’s multi-annual financial framework, or overall budget, in the period after 2027. Member states are more concerned about defence than at any time since the foundation of the European Economic Community. I believe, however, that the Commissioner’s vision provides the basis of a strong argument for a robust and fully funded CAP in the next EU budget. Ireland will strongly support this proposition. I look forward to discussing the vision with agriculture and food Commissioner, Christophe Hansen, and my fellow ministers at the AGRIFISH Council in Brussels next Monday, and to working closely with stakeholders in Ireland over the next few years on the future direction of CAP.
I am optimistic about the future of the agrifood sector. This sector has a central role to play as food producers, employers, a foundation of sustainable rural communities, protectors of the environment and the guarantors of food security in Europe and the world. We need to restore pride in our farmers, fishers and foresters. We must acknowledge their proud legacy and recognise the essential role they play in building a sustainable Ireland for future generations. This is a sector supported by a programme for Government that recognises its critical importance and its potential. It is modern and dynamic sector with roots in the domestic economy but an economic footprint right across the world. I look forward to working closely with all those who have a stake in it to deliver on its potential to continue making an enormous contribution to the Irish State. I look forward to working with all Members of this House to get the very best outcome for the agriculture sector in the term ahead.
6:30 am
John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Deputies Kenny, Mac Lochlainn, Conway-Walsh, Bennett and Carthy are sharing time.
Martin Kenny (Sligo-Leitrim, Sinn Fein)
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Many congratulations to the Leas-Cheann Comhairle on his position. I welcome the new Minister to his role also. I worked with the Minister, Deputy Heydon, in the previous Government and I hope to have a good and productive relationship with him in this one, and indeed with the Minister of State, Deputy Grealish. Much of what the Minister has said I cannot disagree with. We have a vibrant economic model in our farming sector. Both fisheries and farming have huge potential for our economy, particularly for rural areas. People living in coastal areas depend almost solely upon them and many of our small towns and villages would not operate if we did not have our farming communities. It is evident that Ireland is an agricultural country still. It is a massive part of our economy and we have to ensure we develop and grow our farming sector in particular.
The Minister mentioned the various sectors. One of the problems with the Teagasc farm report is that it is about summary statistics, the overall picture. When we go down and bore into things a little bit, the report sometimes covers up some very disappointing situations, especially the suckling sector, which is one of the main sectors in my part of the country, where we have very low farm incomes. In the past couple of days I was just looking at this along with somebody else. A suckler farmer with 40 acres would find it hard to make a profit of €5,000 or €6,000 a year. If they were working on a building site, they would make in a month what they make in 12 months farming. Those people must have off-farm income, and therefore we have to ensure there is a vibrant economy in those rural areas alongside the agricultural economy so they have other opportunities.
The sheep sector is very difficult also. We have to understand that for many people living on marginal land in poorer circumstances, where they do not have options, and although dairying is doing very well, that cannot be for everywhere, we have to recognise there should be better assistance in place for them. That is where the schemes come in, the ones Government has control over. I acknowledge the Minister's recognition of the frustration farmers have, particularly with ACRES and the significant problems that exist, which are far from resolved. I recognise his commitment and that he hopes and expects to have a lot of this sorted out by June and that it will not happen in the future. For the vast majority of people, though, this has been the experience with every scheme that governments have continually brought out. This is not new. Every time a scheme is brought out, it is difficult, onerous and hard to comply with and slow to get paid. That is what happens with farmers every time. There is a big job of work to be done in the Department of agriculture to ensure there is a sea change in respect of all that.
I mention the forestry sector, which has a huge impact in my part of the world, especially in respect of the storm which the Minister also mentioned. With electricity power lines running through forestry, trees have come down on top of lines and this has destroyed rural communities. We have to change the model to ensure infrastructure like that is protected. This needs to be done as quickly as possible. I wish the Minister and Ministers of State well. We hope to work co-operatively together. I certainly will be taking a strong stance for rural Ireland and to ensure people can get proper payment for the food they produce and proper payment from the schemes they enter. That is the responsibility of Government.
Pádraig Mac Lochlainn (Donegal, Sinn Fein)
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I congratulate the Leas-Cheann Comhairle on his election. I know the Minister's colleague, the soon-to-be Minister of State, Deputy Dooley, will be assuming responsibilities next week in respect of fisheries and the marine. I would like the Minister to note what I have to say and I will speak to the Minister of State, Deputy Dooley, about this next week face to face.
The scale of the crisis in our seafood industry is unparalleled in the history of the State. I spoke to one of the leading representatives of the industry today. I visited Killybegs Harbour a number of times, most recently late last year. I was shocked to see the decline of the industry. As the Minister knows, in that south-west area of Donegal they built up a pelagic industry that employed thousands of people. It is in serious decline. A lot of it is our own doing in this State. I would say confidently that the level of regulation and oversight of our fishing and seafood industry from the SFPA is unparalleled anywhere else in Europe. If we look at the landings data, between 2022 and 2024 in Killybegs there was a huge drop in landings, not just for Irish vessels but for foreign vessels. The foreign vessels are voting with their feet but the Irish vessels are going elsewhere too. They do not face the same crazy bureaucracy at harbours elsewhere in Europe as they face in Killybegs. It is really hurting the industry, as is the lack of a strategy, even the lack of honesty. The industry tells me the data published by Bord Iascaigh Mhara is no reflection of the decline of the industry. All you need to do is visit the harbours. I mentioned Killybegs but I could go to Greencastle in my own peninsula of Inishowen, I could work my way down to Ros an Mhíl, Castletownbere, Dunmore East, right around to Clogherhead and all the harbours and piers. Just talk to the industry.
This is a tragedy. We are surrounded by the richest fishing waters in Europe, in fact, some of the richest fishing waters in the world. How can it be that we have an industry in decline in those circumstances? I ask the Minister as senior Minister, working with his colleague, the Minister of State, Deputy Dooley, to meet with the industry, have a reset and a new focus. Talk to the Department of the marine and to Bord Iascaigh Mhara and let us turn this around.
6:40 am
Rose Conway-Walsh (Mayo, Sinn Fein)
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Comhghairdeas, a Leas-Cheann Comhairle. You will be sadly missed as Cathaoirleach of the finance committee. I wish you well in your new role.
I welcome the opportunity to talk about the agrifood industry. It is a sector that is vital to sustaining rural communities. I again ask the Minister about the damage suffered by farmers during Storm Éowyn, particularly to their infrastructure such as sheds, and by fishermen who did not have insurance. I spoke to the Minister about the seafood sector and the oyster farmers, including one in my constituency who had a loss of €160,000. No fishing business can sustain that scale of loss. I ask the Minister to put those supports in place as quickly as possible. Some of the damage done cannot be just alleviated by TAMS or an existing scheme. We need to ensure agriculture is supported in that way.
I am glad the Minister referred to ACRES again today. The debacle continues. We should never set up a scheme within the Department unless the computer system there lends itself to payments being made in a timely way. This has not been done with ACRES. An awful lot of damage has been done to the relationship between farmers and the Department and the Government in terms of getting them on board with climate change.
I also ask the Minister to work on an all-island basis and develop a relationship with his counterpart in the North. It is very important to tackle agriculture in that way. The Taoiseach has specifically tasked each Department with doing North-South pieces of work that will be measured. What are the Minister's intentions on that? I encourage him to do that. I know our spokesperson and the rest of us will work with him to have an all-island approach to agriculture which can be very successful.
The uncertainty regarding farm funding in the North and the back-to-back systems with different regulatory and financial frameworks makes life very challenging for farmers on both sides of the Border. We believe decisions which affect our agri industry should be made on the island of Ireland and not by governments in Westminster. All the challenges we have outlined can be met on an all-island basis. Will the Minister pay particular heed to small family farms and take up our suggestion for a commission for family farms?
Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Comhghairdeas, a Leas-Cheann Comhairle. We all wish to see an environment of co-operation fostered between the Department of agriculture and farmers in order that farmers would feel that they, as the primary producers, were viewed by the Department as its primary stakeholder. All too often, however, the relationship is antagonistic. Part of the reason for this is that the Department is all-too-quick to impose fines on farmers and claw back a few pounds already paid, such as in the case of the BEAM scheme with which the Minister, Deputy Heydon, is familiar.
Government can seem to have mixed feelings regarding its own failings. This is especially the case regarding biodiversity, disease and disease eradication measures whereby all too often the Government has refused to take responsibility for those failings and has thrown good money after bad in support of failed strategy. The one area where it drags its heels is in supporting farmers impacted by events entirely outside their control. I have yet to hear of any accountability regarding ash dieback or how these diseases will be prevented from wreaking similar havoc on our native tree species. Delays in supporting foresters removing affected trees were beyond excusable. Rural people will have to pay the price as many of those rotten trees came down during Storm Éowyn.
Farmers have participated in forums, have paid levies and have contributed millions through their own labour to the State's TB eradication programme despite the EU pulling funds due to the lack of results. Why would it not do so when last year saw the number of reactors increase by a staggering 41%, with the overall incidence rate rising by nearly 23%?
I welcome what appears to have been a co-ordinated cross-Border response in issuing a housing order in relation to avian influenza earlier this year. However, many farmers in the Border region and County Monaghan specifically will recall the cull of 2020 and the uncertainty and delays associated with the supports that followed. I appeal to the Minister to ensure our biodiversity, disease prevention and eradication protocols and strategies are working and fit to enhance our agrifood sector. He must ensure he puts the payment of supports for our farmers on at least an equal footing as the vigour with which the Department sometimes takes their payments away.
Matt Carthy (Cavan-Monaghan, Sinn Fein)
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Gabhaim mo chomhghairdeas leat, a Leas-Cheann Comhairle, agus le do chlann as do phost nua, agus do na hAirí freisin. One of the reasons for your successful election, a Leas-Cheann Comhairle, was the recognition of all Members of this House that you can be very flexible when it comes to accommodating Members, in contrast to the time restrictions that others might be rigorous with. I will see if I can try not to break your patience on this occasion.
John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Do not tempt me.
Matt Carthy (Cavan-Monaghan, Sinn Fein)
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I welcome the opportunity to talk about the importance of agrifood to the Irish economy. Sometimes agrifood is presented as an established industry, as of course it is, but it is much more than that. Many of us will have been struck that, on the day of Storm Éowyn, when the winds first subsided in communities like mine, the first people we saw engaging in the clear up were not those from the local authority, ESB Networks or any other statutory body but our local farmers who were out clearing the roads and getting involved with the most vulnerable in our communities. That is what our family farmers do. They are integral to our communities and our rural way of life. They are integral to so much more than the top-quality food they put on our tables and export, making Ireland renowned as a producer of the best food in the world, as I would see it.
They need support, however, and they have told us they need support. They need support in a number of different facets. They need support with a fair CAP. The last CAP deal, which was negotiated and supported by the outgoing Fianna Fáil and Fine Gael Government, essentially meant farmers received less support at a time when they were being asked to do much more. Therefore it is important for the incoming Government to set out very clearly, as Sinn Féin committed to do in our manifesto, that it will be a priority of the multi-annual financial framework of the next EU budget to have an increase in the CAP budget. As Ireland is now a net contributor to that budget, we are in a strong position to argue that the policy area most important to us, the Common Agricultural Policy, should see an increase in funding, considering that we are asking farmers to do much more.
The second area where farmers need strong intervention is that they need fair prices. Everybody knows how much a farmer receives at the marts or the factories. In fact, it is published virtually every week. Everybody knows how much consumers pay in their supermarket or butcher for meat, for example. Nobody knows, however, who is making all the profit in between. We do not have enough transparency and we need fair play.
I welcome that the Minister has indicated probably more firmly than we have heard in this House by a Minister that the Government will oppose the Mercosur trade deal. The Mercosur trade deal needs an active approach by Government. It is insane that we would ask our farmers to do all the things we are asking them to do in terms of animal welfare, biodiversity and climate action while at the same time supporting a trade deal that would involve the absolute destruction of hundreds of thousands of hectares of rainforest and the importation of large quantities of beef.
Robert O'Donoghue (Dublin Fingal West, Labour)
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I congratulate the Leas-Cheann Comhairle on his new role. It might seem odd that the Labour Party spokesperson for agriculture is a Dublin-based TD. However, I assure members that I am from Rush in the north county. It used to be known as the market garden capital of Ireland because of the importance horticulture played in its economy.
I have picked every fruit and vegetable under the sun during the course of my life and also worked in the supply chain for Fyffes for three years, so outside of those Members who are actively involved in farming, I have a decent take on how the agrifood sector works. The biggest employer in my local area is County Crest which employs over 400 of the 171,000 people working in the agrifood sector. It has a multimillion turnover which feeds into the more than €18 billion in exports that Ireland produces each year. The north county has some of the best, if not the best, land in Ireland for horticulture, underscoring the importance of this sector to both Dublin Fingal West and Ireland. However, as others have said, the agrifood sector faces a number of challenges both in the short and long term.
Ireland’s ability to secure its own food supply as well as its exports is crucial in an increasingly uncertain global landscape. International political uncertainty coming from the war in Ukraine and the sidelining of Europe by the US and Russia in the ongoing talks to end the war poses a significant threat to global trade, supply chains and food security and this will impact us.
Energy prices heavily impact and influence food production costs on farms, from farm machinery to transportation and refrigeration. In my constituency Welgro uses gas to heat its glass houses to produce fruit and vegetables but war-related energy price shocks and inflationary pressures on gas prices in 2022 posed a significant threat to the viability and continuation of its business. From recollection, there was not much aid made available to it at the time.
Climate change and biodiversity loss is another critical factor affecting food security. Weather extremes such as floods, droughts and storms have had a severe impact on the production of agricultural output in my constituency. Farmers are still struggling after a winter of storms which has affected everything, including disrupting planting cycles and damaging polytunnels.
From grass-fed beef to organic vegetables, Irish farmers are renowned worldwide for producing the highest quality, sustainable food. However, current Government policies are creating an environment where family farms struggle to survive while large agribusinesses continue to thrive. The EU Mercosur trade deal presents significant challenges related to environmental sustainability and food safety standards, particularly in the cattle industry. Farmers in South America are not held to the same standards of traceability, animal welfare, and health and safety as their Irish counterparts. I welcome the Minister's comments on Mercosur. Even more concerning, South American beef production is responsible for two thirds of tropical deforestation. While the EU asks Irish farmers to set aside land for nature restoration, it simultaneously incentivises habitat destruction in South America. This contradiction undermines the credibility of the deal. The agreement completely undermines efforts toward sustainable food production and tackling the global climate crisis. Addressing these concerns requires robust enforcement of environmental protections and harmonisation of food safety regulations to ensure that trade expansion does not come at the expense of ecological integrity and consumer health or put Irish farmers on an unlevel playing field. The country must balance sustainability goals with maintaining high food production values and fairness for farmers. The Irish Farmers Association argued at the end of 2024 that the Mercosur Pact will threaten Irish agrifood exports, especially beef. While Mercosur will likely be a good deal for goods and services, it is sacrificing agriculture at their altar. I am glad to see this is ringing alarm bells in Ireland and France, in particular, both of which have strong and mature agriculture sectors.
The Labour Party offers a fundamentally different vision for Ireland's farming future. The role of farmers is indispensable but a lot of farmers and growers that I speak to in my local constituency think that their contributions are undervalued. We want to engage with farmers and rural Ireland to bring future-proofed jobs back into our farming communities. This means working with farmers and developing policies that protect the environment and our food supply. We need to grow the horticulture and tillage sectors with an improved tillage incentive scheme and new horticultural schemes. In that context, I thank the Minister for his recent announcement of €1.9 million in baling assistance payments. We need to develop a national food strategy to ensure everyone can afford nutritious food and we also need to transform Teagasc into a food security and sustainability agency.
The EU has always put food security at the front and centre of it policies, even prior to the Treaty of Rome in 1958. In the EU budgetary talks which commenced recently on the next EU budget from 2028 to 2034 the CAP is likely to remain the largest single budgetary item. We must secure the future of the agrifood sector by protecting family farms, rewarding small farmers and ensuring fair income distribution for small and disadvantaged farmers. The decline of the family farm in Ireland highlights the growing challenges small farmers face due to Government policies, corporate interests, and environmental regulations that often prioritise large agribusinesses over smaller, sustainable farms. As small farms disappear, rural Ireland suffers. Local economies weaken, traditions tied to farming fade, and younger generations are forced to leave their communities in search of better opportunities. The average farm income is only €29,000 per year and once young people leave, it is very hard to get them to return to the land. We need to protect the long tradition of the family farm and send a clear message of support for the Irish family farm which is not just an economic unit but a vital part of our national heritage. We must push for CAP reforms that will protect our rural heritage and family farms while at the same time innovating our way to delivering secure, long-lasting, sustainable rural jobs.
CAP payments should support small farmers but in reality they are often disproportionately funnelled into larger agribusinesses. We need to reform CAP so that it directly benefits the smaller farmer. We can do this by: bringing small and medium farms into the twenty first century by upgrading technologies to improve their competitiveness; initiating a Government campaign to publicise the importance of high-quality, natural food production for the health of the nation and encouraging the consumption of less ultra-processed foods; and supporting farmers in setting up processes to add value to their produce, as has been done in Ballymore Foods in my constituency.
Finally, we need to protect farmers from being squeezed by the supermarkets. I spoke to a parsnip farmer at the weekend who explained to me that he puts his crop in the ground between March and May. However, the supermarkets will not discuss pricing until June, at which point the crop is in the ground and any leverage the farmer has to get a better price for his produce is minimal. He either has to take what is on offer or let the crop rot in the ground. Large supermarket chains and food processors have significant control over pricing, sometimes paying farmers less than the cost of production. Meanwhile, input costs such as fuel, feed, and fertilizer continue to rise which cuts into the margins of small farmers in particular.
If we want a strong and sustainable future for Irish farming we must support the next generation of farmers, especially young people trying to get into farming. Farming has long been the backbone of our rural communities. The issue in my area is that there is only one bunch of farmers who are younger than I am. The average age of farmers now is 60 and that is not sustainable. We need to push for change before it is too late. The future of our rural communities depends on it. I look forward to working with the Minister in this regard over the course of this Dáil term.
6:50 am
Peter Cleere (Carlow-Kilkenny, Fianna Fail)
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I will begin by congratulating Deputy McGuinness on his elevation to the position of Leas-Cheann Comhairle. It is a huge achievement for him and his family. I want to assure him that while he is busy up here, I will make sure that Kilkenny will be well represented on the ground.
I wish the Leas-Cheann Comhairle well and congratulate him. I look forward to working with the Minister, Deputy Heydon, and the Minister of State, Deputy Grealish, over the coming years.
Growing up and living in a rural community, as I do in Skeaghvasteen in the parish of Graiguenamanagh, on the Kilkenny-Carlow border, I am acutely aware of both the challenges and opportunities facing the agricultural sector and the communities it represents. Farmers are the custodians of our landscape, ensuring sustainable food production for a growing world population, as well as a major driver of the rural economy. This Government has to support farmers and the agrifood industry by using every single policy lever available and ensuring that vital farm payments are both protected and expanded. To put the significance of the agrifood industry to Ireland into context, it is worth 8% of our GDP; it accounts for 11% of our total exports; 90% of our dairy, beef and sheep output is exported; it employs more than 170,000 people, which is 7% of total employment; and 700 rural-based companies, many of which are in my own constituency of Carlow-Kilkenny, export food products to 160 countries around the world. It is our sustainable, indigenous industry. I want to emphasise the importance of the agrifood industry in sustaining communities in rural Ireland. Schools, GAA clubs, other sports, local shops and businesses all depend on our agrifood industry flourishing. It is in that context that I make these comments.
Fianna Fáil welcomes this debate on this vitally important sector. Our farmers are world-class food producers. They are the social, economic and cultural pillars of the rural communities I represent. Supporting farming families is a priority for Fianna Fáil. This is why we have and will continue to implement a range of supports and reforms in the sector. Fianna Fáil is also acutely aware of the cost challenges facing our farm businesses and we have demonstrated our support of same. From 2020 to 2024, we worked hard to deliver investment both on the farm and in industry to provide tangible financial supports for farmers. These measures include a new €1.5 billion agri-climate rural environment scheme, or ACRES, a new agrifood regulator, supports of €225 per suckler cow and €25 per ewe and an allocation of almost €10 billion for EU and Exchequer funding to support our farming families from the period from 2023 to 2027.
We know that Irish agriculture can continue to be a world leader in innovation, sustainability and value. Irish farmers have demonstrated time and again their commitment to innovation by embracing the challenge to reduce the environmental impact of farming with 55,000 farmers joining ACRES. Moving forward, we will continue to reward high-quality habitats, improve biodiversity and water quality, and ensure farmers are backed in terms of income.
As I said earlier, the agrifood sector is our most important indigenous industry, providing 173,000 jobs and accounting for 10% of Irish exports. Fianna Fáil and the Government are fully committed to supporting farmers and food businesses, which underpin the vitality of rural villages and towns across the country, including in my own constituency of Carlow-Kilkenny. The agrifood sector has come through a difficult number of years, dealing with many challenges such as Brexit, Covid, a new Common Agricultural Policy, significant market disruption to the beef sector and extreme weather events. We need to drive innovation and improvements in land management to reduce emissions and build on Ireland's green reputation for producing high-quality and sustainable produce at the least environmental cost, ensuring that the long-term outlook for the agrifood industry remains positive and vibrant.
I welcome significant commitments to our agrifood industry in the programme for Government. Regarding beef, for example, the programme for Government states that the Government will "Increase scheme supports for suckler farmers over a five-year term in office and ensure straightforward measures to encourage uptake." That is most welcome. On the sheep side of things, the programme for Government states the Government will "Increase scheme supports for sheep farmers over a five-year term in office and ensure straightforward measures to encourage uptake." Many of the elected Members in the Chamber will be very familiar with the bureaucracy and red tape involving the agriculture industry and that needs to be attacked by this Government, and I welcome plans to do so.
A strong CAP that works for farmers is absolutely vital. We need to fight at EU level for a fully supported CAP with an increased budget. We need to work at EU level to simplify the CAP post 2027 to ensure simplified payments for farmers, along with balanced and proportionate controls. As I said, we need to reduce the administrative burden and red tape that farmers encounter daily by ensuring flexibility in the designs of schemes and stakeholder input at all times. Very importantly, we need to work at EU level to secure new funding streams which are separate to CAP to support farmers in meeting environmental responsibilities.
We also need to support farm succession. We need to ensure a farm succession scheme that supports generational renewal. We need to act on the recommendations of the commission on generational renewal in farming, which is examining the current policy framework, along with available policy tools and supports available to encourage young people into the sector. We need to update the eligibility criteria for the farm succession partnership tax credit by revamping support and eligibility criteria. We also need to ensure that Ireland remains an exemplar in agricultural education by investing in agricultural colleges and facilities such as Kildalton Agricultural College in Piltown, south Kilkenny. Supporting farm families is also crucial. This Government needs to work with the Department of Health to examine the fair deal scheme in order to ensure it does not impede succession planning and it recognises the distinctive position of agricultural land. We need to increase the traditional farm buildings grant and ensure there are sufficient employment permits to support the agrifood sector, including the equine, dairy, horticulture, fish and food processing industries.
Farmers are in a fight for survival. They are facing the biggest battle of a generation and our rural economy is in the front line. At stake is the survival of traditional family farms and hundreds of jobs in my constituency of Carlow-Kilkenny. The nitrates directive and the serious threat to derogation status for many dairy farmers within two years will have a devastating impact on them should Ireland lose its status. The Government must be prepared to go into the trenches on this one to convince the EU Commission and the other 26 member states that Ireland must retain the derogation. I support efforts to improve our water quality, and I believe that farmers are committed to playing their part with good management practices and making significant capital investments. Carbon dioxide emissions have exploded following a central of industrialisation, urbanisation and massive transport expansion. However, the damage cannot be reversed in a few short years, and common sense must prevail. Farming and the food industry are the backbone of rural Ireland. This is a major distinction between us and the larger EU countries. We accept and understand the climate issues and the impact on the environment, but there must be a balanced perspective when legislating for corrective measures. I encourage the Minister to do this and to engage.
I look forward to working with the Government to work with and for the agricultural communities to help rural communities and businesses to prosper, flourish and grow into the future.
7:00 am
Donnchadh Ó Laoghaire (Cork South-Central, Sinn Fein)
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Déanaim comhghairdeas leis an Leas-Cheann Comhairle. I wish him the best in his new position.
With the short amount of time I have, I will make some brief observations across the areas of both agriculture and fisheries. I echo the concerns that have been raised by others regarding Mercosur. The issues with Mercosur are wide-ranging and significant. It is difficult to see why anybody from an Irish perspective could even conceivably support it. It is clear to me, however, that the Irish Government has not been actively opposing it in the way that it should be if it is committed to ensuring it does not happen. I refer to the implications for Irish beef, the quality of our food, emissions in terms of deforestation of the Amazon and the quality and safety of the produce that could end up in the Irish market. It would be a significantly retrograde step and I encourage the Government to be more proactive in opposing Mercosur.
Similarly, on the global side of things, there are potential dangers to Irish food and drink produce off the back of a lot of the talk of the new US Administration. Obviously, nothing has happened at this point and the right approach is to wait and see, but preparation has to happen all the same. It is important to ensure that the Irish agrifood industry is supported in the best way possible, in terms of ensuring that key products in terms of food and drink, as well as pharmaceuticals and other areas, are a key priority in the EU negotiations with the United States.
I am thinking particularly of food and drink products such as dairy and whiskey. Items like that need to be central to negotiations. We also need to ensure new markets are explored. A particular area in which there would be scope to explore is a new sanitary and phytosanitary agreement between Britain and the EU. That could potentially benefit the Irish agrifood business.
I have spoken to people involved in the fishery industry both on the fishing side and the processing side. There is a feeling that they are always the bridesmaid - an afterthought of the Department. That is the feeling on the ground. An example is the issues around funding in recent times. The Brexit adjustment fund was an opportunity but there was a short timeline given by Europe - three to three and a half years. The Department of the marine took a year and a half for an announcement and to publish and open schemes to allow people in the industry to apply. It then only allowed 1.25 years for them to be completed. They were told there would be no cliff edge and that EMFAF would follow through.
7:10 am
John McGuinness (Carlow-Kilkenny, Fianna Fail)
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The Deputy's time is up.
Donnchadh Ó Laoghaire (Cork South-Central, Sinn Fein)
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I will finish by saying that was not necessarily the case. There is a lack of long-term planning and a need for reform of the marine agencies because there is a feeling that it is a neglected area and its potential is not being fully met.
Jennifer Whitmore (Wicklow, Social Democrats)
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I thank the Leas-Cheann Comhairle. I too offer my congratulations to him and wish him the best for the term. I think it might be a very busy term; that is what my gut is telling me. We will see how it pans out. I also congratulate the Minister, Deputy Heydon, and Minister of State, Deputy Grealish, on their appointments. This is my first time speaking as spokesperson for agriculture for the Social Democrats. Agriculture and the marine are cornerstones of Ireland both economically and culturally. They have played a huge part in many communities, families and lives; indeed, my own as well. My family was traditionally a fishing family. I worked in the area of fisheries for many years so I am looking forward to working with the Minister on that issue. I also worked in aquaculture for quite a while; I spent far too many years cleaning out fish tanks across the country. There is a long history of agriculture and the marine. We face many challenges but I share the Minister's optimism. If we get this right, it could continue to thrive and offer so much hope to many communities but a lot of challenges are to be faced. We have to start thinking outside the box. The business-as-usual approach will not work. Environmental issues are hitting us at the moment along with climate issues. There are also global considerations. There are many challenges but lots of opportunities as well.
We had Storm Éowyn recently. There was a lot of discussion about it. It had a huge impact and hit many communities, particularly in the north and north west. From an agriculture perspective, one of the sectors particularly hit was horticulture, which lives on the margins anyway. Many businesses have quite precarious futures and struggle to make ends meet a lot of the time. The Minister reopened the scheme for the horticulture sector, which I welcome but there are some gaps in the scheme. It could be revised to ensure it puts supports where they are needed and when. The scheme is not designed to be an emergency-based scheme which is exactly what the horticulture sector needs, particularly the smaller players. There are difficulties for people in the sector in relation to the application form, the paperwork required as part of the scheme and the fact that it is a reimbursement scheme. Many smaller players in the horticulture sector do not have the capacity to make these payments upfront and then get the money back in a number of months. I ask the Minister to revise that scheme and look at it from an emergency perspective. It is particularly problematic for small players. Only capital costs are covered under the scheme; loss of crops is not covered nor ancillary costs. It would be useful if the Minister looked at that.
I also want to refer to Mercosur. It is a global issue that could have a huge impact on our agricultural sector. It is not often that the environmental and agricultural sectors in Ireland stand side by side against something but they do concerning Mercosur. Perhaps they come from different angles but both areas see huge problems with the EU ratifying and going through with this trade agreement. There is still no clarity over what it will mean for the agricultural sector in Ireland. The EU Commissioner for Trade spoke about a fund that would support farmers if they were negatively impacted but in the next breath he said there would not be a fund. There is a lot of uncertainty, leading to the further undermining of people's trust. Farmers need clarity and to know what could be coming down the road. In the Minister's opening statement, he spoke about the measures he has taken and said he has been raising this at an EU level. Has the Government submitted its formal opposition to the Mercosur deal? That should happen. I know a voting bloc is required. What is Ireland doing to drive that and be actively involved to make sure we are doing as much as possible to bring countries together with similar concerns to ours to make sure this deal does not go through? If this deal goes through, it will benefit a lot of countries in the EU but Ireland is one of the countries that will be severely damaged by it, particularly the agriculture sector. Will the Minister actively try to get that grouping together to make sure this deal cannot go through, particularly in its current form?
It feels strange to talk about greyhound racing in an agricultural debate but it is an agricultural issue. A report today stated that 202 greyhounds were killed last year on the track or as a result of racing. That is the highest number of greyhounds killed since records began. There was a 50% increase in the number of fatalities and injuries in 2024 compared with 2023. There are major animal welfare issues associated with this industry. It does not just relate to Ireland; it is across the globe. That is why so many countries have banned it. Only seven countries allow greyhound racing. Of those seven, New Zealand will ban it from 2026 and Wales said this week that it will ban it. Ireland is an outlier not only in that we allow greyhound racing to happen but that we support it.
John McGuinness (Carlow-Kilkenny, Fianna Fail)
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The Deputy is straying from the agrifood sector.
Jennifer Whitmore (Wicklow, Social Democrats)
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It is an agricultural issue. The Minister spoke about forestry. I agree; it is bizarre but it is a matter for the Minister for agriculture so it is appropriate to talk about it today. Ireland is an outlier because not only do we allow greyhound racing to happen but we give it an awful lot of money - €20 million - every year. If one compares that to what some charities get to provide fundamental services, one will appreciate that €20 million is a huge amount of money. It is time to look at this. I will not call it a sport because it is not a sport, it is an industry. I think that the Minister, Deputy Heydon, would agree with that.
It is time to look at this industry. It is inherently cruel and is built on practices that amount to animal abuse. There is a huge number of fatalities and injuries every year. Even the fact that we define greyhounds as an agricultural animal enables a workaround with animal welfare practices. Consider canine artificial insemination. Vets have been banned from using that on dogs but they cannot ban it for use in greyhounds because greyhounds are considered an agricultural animal. I put it to the Minister, Deputy Heydon, that we need to ban greyhound racing in Ireland. We certainly should not be funding it. We have not seen changes in animal welfare standards in the industry. We are not going to see changes in those standards and the way dogs are treated. It is not by all owners. I absolutely will attest that it is not all owners but the industry itself is inhumane and is built on inhumane practices. I ask the Minister to consider banning it in line with and following on from other countries. There are reasons those countries are banning it and those reasons apply in Ireland. It is not just an international issue. I ask the Minister to look at that. It is time that we stop propping this industry up with taxpayers' money while also turning a blind eye to what happens in it.
7:20 am
John McGuinness (Carlow-Kilkenny, Fianna Fail)
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I allowed Deputy Whitmore to make that contribution as I did not want to get into any argument about it at this stage but I would like to stick to what is on the agenda, which is agrifood. You have made your point but in the future whatever is on the agenda is what the Minister has prepared for, and that is what we are dealing with.
Jennifer Whitmore (Wicklow, Social Democrats)
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Can I just make a comment-----
John McGuinness (Carlow-Kilkenny, Fianna Fail)
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No, I am sorry-----
Jennifer Whitmore (Wicklow, Social Democrats)
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-----that forestry was covered by the Minister as well and that is not an agrifood issue.
John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Deputy Ward, please.
Barry Ward (Dún Laoghaire, Fine Gael)
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Gabhaim buíochas leis an Leas-Cheann Comhairle. Más féidir liom, i dtús báire, gabhaim mo chomhghairdeas leat as a bheith tofa inné agus tá súil agam go mbeidh gach rud déanta duitse chun meas a thabhairt don Chathaoir sa Teach seo, chomh mór is a bheidh leis an gCeann Comhairle í féin freisin. Ar an ábhar sin, maidir le mo chomhghleacaithe, na hAirí nua, ba mhaith liom mo chomhghairdeas a ghabháil leo freisin, go háirithe mo chomhghleacaí Fhine Gael, an Teachta Martin Heydon. Táim ag tnúth go mór leis an obair a bheidh le déanamh acu, an bheirt agaibh, ach go háirithe ag an Aire, an Teachta Heydon.
There is no disputing the importance of the agrifood sector in the Irish context. More than 170,000 people were employed directly or indirectly in the agrifood sector in 2022, which is a substantial portion of total employment in this country, across 135,000 farms, and there were 2,000 fishing vessels and aquaculture sites. The gross value added at factor cost in the agrifood sector in 2022 was €18.3 billion. I do not think anyone in this House would be in any doubt about the value of the sector and the importance of the sector to our economy, but also the importance of sector to communities throughout this country.
I stand before the House as a TD for Dún Laoghaire, which is not known necessarily for its agricultural output. Although there are farms in Dún Laoghaire, people somehow deny that. There are many farms in the south west of the constituency, in particular around Ballyman, The Scalp and Murphy's Lane, which is named after the Murphy farm. There are lots of farms and farmers in my constituency. In fact many people are not just engaged in farming in Dún Laoghaire but working in farming-related industries. The farms may not be in Dún Laoghaire but those workers live in Dún Laoghaire. There is no constituency in this country, even the most urban, that is not affected by agriculture and that aspect of the economy.
As a Dublin TD and a person from Dublin there is sometimes a sniggering regard in relation to how much I might or might not know about agriculture. I have no doubt that there are colleagues of mine sitting in their offices in the House today greatly amused at the fact that I am standing up here to speak about the importance of the agrifood sector. There is also the issue that when you are around the country and you tell somebody you are from Dublin they assume you do not know what is beyond the M50. I am sure that is true of some people but it is not true of me. I have worked in agriculture. I have worked on farms here and in France. I worked for a long time within the Department of agriculture as a prosecutor for animal welfare issues under the Animal Health and Welfare Act 2013, which was brought in by my colleague, the then Minister, Simon Coveney. It is hugely important legislation that deals with abuse of animals on farms in particular. Perhaps the greatest application of it relates to the failure to look after agricultural animals, particularly livestock and those protected species. In addition, there is my family background. I am only one generation in Dublin and my family were drystock farmers in east Galway. There are very few people in Dublin who are very far away from the land. Most people in Dublin, or in other cities around the country, come from a farming background at some point in their family and have people in their family who are farming. I am a member of the Irish Farmers Association, which might surprise some people as well.
The point I make is that, irrespective of what part of the country you come from, agriculture is your responsibility. Irrespective whether you are an urban TD or a rural TD, agriculture matters and it matters to you. The important aspect is that we have not just a tremendously vibrant agricultural sector but a sector that delivers for this country across the board. The quality of food in this country is extraordinary. When you go abroad, the comparison with the freshness of our food is noticeable. There are so many farms in this country that are small family holdings delivering extremely high-quality food products whether that is beef, milk or arable or whatever it might be. As we go into next month, we know that from Boston to Berlin to Beijing Irish agricultural products, be they meat, dairy, vegetables or grains, will be adorning the tables not just of embassies but of events throughout the world.
All of that agricultural output comes from the hard work and sweat of individual families around this country. Let us remember that the agriculture sector very often involves a family endeavour and not just one farmer. It is all of the people around that person who work on the farm. It is the family and the children of that family who are all engaged in the work of the farm. It is something we can be hugely proud of. The real danger is that we forget how important and fragile it is. As I said at the start, it is connected into communities around the country. Communities survive because of those farming families, because of those small farms and because of all the jobs and revenue they generate in that local community as a result.
When we look at farming around the world, and particularly at our neighbours in Europe - we should remember that much of the agriculture in Europe is supported by subsidies from the European Union - they generally have a much more industrialised style of farming. The Irish model of farming is much more carbon-efficient for starters, with grass-fed beef and so on. It is worth acknowledging the amount of work done by Teagasc in coming up with plans for reducing emissions, particularly from dairy herds, as well as the new swards it has developed that reduce emissions, and the projects it put in place to manage the lifespan of a beast that is going to be slaughtered to reduce its overall emissions. All of these things represent enormous progress in making farming sustainable and less damaging to the environment.
The real danger is that we forget what this industry sector represents for our country. We may look at other countries and say, "Well they have a much more intensive farming model and it is, therefore, much more efficient and much more economically viable," or whatever it might be. To say that is to forget what small farms deliver for communities all over this country. That is perhaps central. As important as the agrifood sector is to our economy - I mentioned some of the figures at the start - what it produces for communities and for small towns and villages throughout this country is of equal importance from the point of view of its sustainability.
As an urban representative within this House, the responsibility for promoting and sustaining agriculture and ensuring it is viable into the future is a responsibility of every Member of this House, irrespective of whether you live in a three-bedroom semi-detached house in a suburb or an apartment in a city or a farmhouse in the country. Every one of us must take responsibility for acknowledging the importance that agriculture plays in this country's economy, in our individual lives and in the food that goes onto our table. The quality of that food is not accidental. It comes from the hard work of farmers. It is all too often easy for those of us who represent urban areas to step back and say, "I do not have many farmers in my constituency," or, "Farming is not a big business in my constituency." Even if that is true, and I do not accept it is true of any constituency, we have a responsibility as Members of this House and representatives of the people of this country to ensure that the agrifood sector is sustained, promoted and supported at Government level, throughout local government and at all the different levels of government within this country . That applies equally to those of us from Dublin and Cork as it does to those from country constituencies.
Verona Murphy (Wexford, Independent)
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The Deputy is correct.
7:30 am
Natasha Newsome Drennan (Carlow-Kilkenny, Sinn Fein)
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For generations, agriculture has been the heartbeat of Ireland's economy, culture and rural identity. Today, over 170,000 people are employed across the sector. That number shows the agrifood sector is the backbone of communities across the State. Many of my family members, neighbours and friends are part of that 170,000-strong workforce that contributes to the strength of Irish agriculture.
We must face the reality that Irish farming stands at a crossroads. There are external threats breathing down the necks of farmers across the State. As someone whose family runs a suckler farm, it is crystal clear to me that time and again the suckler farmer is getting the short end of the stick. The Mercosur free trade deal will see up to 99,000 tonnes of beef imported from the likes of Brazil and Argentina. The average income of farmers in Ireland is €19,000 per year, while the average for a suckler farmer is already rock bottom at €7,400. How low will their income drop when this beef starts appearing on shelves across the EU?
We are here to speak on the importance of agrifood to the economy but last week Fine Gael's MEPs abstained on a motion on risks related to importing goods produced with banned pesticides and GMOs as part of Mercosur. Putting out statements on the risk of Mercosur is all well and good but abstaining on that key vote was a slap in the face to Irish farmers and the communities who support them, and to the promises on Mercosur.
My husband and I are raising our four sons on a family farm in Kilkenny. I want to see our family farm passed on to the next generation. I want our sons to want to stay in farming but with the income of suckler farms dropping year after year while costs continue to rise, my hopes are dwindling. We need to address the fact we are haemorrhaging farmers. On average, 1,400 farmers leave farming each year. One third of farmers are over 65. One of our biggest industries is teetering on a demographic cliff. Farmers across the State cannot sit and wait for the EU's new vision of agriculture and food to be teased out. Ireland needs to step up and become a driving force in delivering sustainable and secure farming. We need to lead the way in incentivising young men and women to continue farming and working on family farms.
Verona Murphy (Wexford, Independent)
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Thank you, Deputy. I call Deputy Coppinger, sharing with Deputy Stanley.
Ruth Coppinger (Dublin West, Solidarity)
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Some Deputies have said they are not from rural areas but we all eat food so we are all entitled to speak on the topic. Also, the animals which provide the food are everybody's concern. No special privilege is afforded if you are a rural dweller or a farmer. We talk about the food economy but what about the welfare of the animals in that food economy? Nobody wants to eat food that is based on cruelty but that is happening in our agrifood sector.
I want to talk in particular about the pig industry. When I was participating in attempts to ban fur farming, a vet commented to me that the next thing I should focus on was pigs. This person regularly visited farms and was extremely concerned at what they saw.
I will provide a bit of information on the pig industry in Ireland. There are 270 commercial pig farms and 3.5 million pigs slaughtered annually. Ireland still uses sow stalls, despite them being banned in many EU countries and the UK. For people who do not know, there is a gestation crate in which the pregnant sow is placed. Then they are placed in a farrowing crate in the pen just before the birth and kept there for another four weeks. The mother is allowed to move forward slightly but not to turn in any way. There is a creep area where the piglet can reach the teats but that is it. It saves money and space. The piglets are taken away from their mothers well before the weaning time of three months and put in fattening pens. Pigs in Ireland are generally kept indoors and see very little light. They are meant to have enrichment but the only enrichment is often a chain around their necks. Tail docking is banned in the EU but is still widely practised if the farmer feels it is necessary - it is not necessary but it is more economical.
The National Animal Rights Association, NARA, did a study of a number of randomly selected farms in January 2024. They were shocked by what they saw: the sow stalls, farrowing crates and fattening pens, but also dead and dying pigs, pigs biting their bars and pigs living in faeces, urine and decay. They gave the information to the Department of agriculture. I ask the Minister what will become of that information.
If dogs or cats were kept in those conditions, there would be outrage, but because it is farm animals it seems to be okay. The most maligned animal in the world is the pig. They are the most intelligent animals as well. We often talk about pigs in a derogatory fashion. Why is this okay? Pigs are also gassed. They make it look like they are asleep and it is peaceful but it is not. A study done in Australia in 2023 showed pigs writhing, gasping for breath, etc.
How often are pig farms inspected? How many fines have they been given relating to animal welfare? What are we doing to help farmers transition out of these bad practices? We should be for climate and welfare reasons moving away from this industry. We should be moving towards a more plant-based food sector in any case. We need to give farmers ways to transition out of pig farming. It is not a good industry. It should be shut down. For more information, Deputies can check out naracampaigns.org/pigs and see for themselves. This really needs to be acted upon. It is time for this cruelty to end and sow stalls, in particular, to be banned in Ireland.
Brian Stanley (Laois, Independent)
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Déanaim comhghairdeas leis an Aire agus an Aire Stáit. Go n-eirí libh. I hope they do well in the posts. They have a lot of responsibility to take on.
It is important the Government take a firm position on the Mercosur deal. There is the weight of the Germans, the German car industry and other more industrialised countries on the other side. It is important the Irish representatives at European meetings take a strong position and combine with those countries that have a strong agricultural base, like France. To be shipping beef from one side of the world to the other when we are talking about reducing carbon emissions is absolute lunacy. Why clear rainforests to rear beef when there is space in this country to rear beef more sustainably on green grass in fields with ditches around them and hedgerows? It is a no-brainer. We have to protect that. It is important we continue to take a strong position on Mercosur.
Organic farming is a niche area but needs to move beyond that. Around 2% of our farming is organic. Compare that with some of our European counterparts. In Austria 36% of sheep are grazed on organic pastures, while 22% of dairy cows in Austria are grazed on organic pastures and 18% in Sweden. It can be done. They are fairly similar countries with fairly similar climates. That needs to be taken into consideration. The scheme has reopened, as I understand. We need to boost that and have a larger share of our produce coming from organic.
The Minister does not need me to tell him the horticultural sector is in danger at the moment. It is not big in my neck of the woods - County Laois - but it is really important for sustainability and other good reasons that we try to enlarge the sector.
The other area I want to mention briefly is the sugar beet industry. You may say it has gone and the Minister, Deputy Heydon, will be aware of the efforts to restart it, particularly close to where he and I live, on the borders of the three counties of Carlow, Kildare and Laois. It was a huge loss to Laois, Carlow and other counties.
It may be gone but we should not give up on it. It is a great sustainable crop that is brilliant for soil nutrition and soil quality. As Teagasc and the farmers will tell you, that is lost. Soil quality is not as good now where you grow grain year after year. If you have beet this year, you will know that whatever you sow next year in the same ground will prosper in it. Anybody connected with the farming sector knows it. It needs to have a second product coming out of it; sugar alone will not do it. I understand the economics of that but bioethanol and other components can be extracted from it as well. It is important to not give up on it.
As for flour, we have gone from being able to sustain ourselves with flour. I discovered, as did a lot of the population, that when the beast from the east came a few years ago, we almost ran out of flour in three days. We cannot have a situation like that in an island economy. While I understand we have a wettish climate, the eastern side of the country is well fit to grow wheat. There needs to be a re-emphasis on that and about the tillage sector overall.
We have beef and dairy, which are thriving at the moment. There is a view that it is maybe thriving too much. My concern is that we are overreliant on it and while it is great that it is there, there is a vulnerability there. We need to take a stronger look at the tillage sector. During the Minister's term as Minister for both agriculture and food, he should be cognisant of that and should take that into consideration.
We need to protect the suckler cow scheme, which is important, including in County Laois. There has been a commitment to improve the supports and I hope that will continue for both the quality of the herd and some of the reasons mentioned already, such as the sustainability of the family farm.
7:40 am
Grace Boland (Dublin Fingal West, Fine Gael)
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As this is my first contribution in the Chamber, I thank the people of Dublin Fingal West for placing their confidence in me. I am determined to justify that confidence and will work hard every day to deliver for all of us who live and work in the vibrant constituency of Dublin Fingal West. I also thank my family for their support and encouraging me to actively participate in politics. My dad, John Boland, taught me the importance of public service and that politics is a worthy profession. My mum, Kay, too often does not get the credit for the role she has played in my journey to this Chamber. To my husband Ruaidhri, my daughters Kaya and Millie and to my campaign team supporters and friends who all played a part in my becoming a proud Member of the Thirty-fourth Dáil, from the bottom of my heart I say "Thank you".
I am very grateful for this opportunity to make a statement today on the agrifood sector in Ireland, given that Dublin Fingal produces 55% of all fresh fruit and vegetables in Ireland. I emphasise the crucial role of the agrifood sector in Dublin Fingal West. Fingal west, with its fertile lands and proximity to both urban and rural areas, is uniquely positioned as a powerhouse in Ireland's agrifood industry and is the market garden of Ireland. Sometimes, people do not realise there is a thriving agrifood sector in Dublin, much of which is located in my constituency of Fingal west. This sector is integral to the growth and sustainability of our towns and villages, not only in Rush, Garristown, Oldtown and beyond, but to Ireland as a whole and to the Irish economy.
The agrifood business is a cornerstone of our local economy, providing employment to over 170,000 people in Ireland, particularly in rural areas where alternative job opportunities may be limited. It helps to sustain local economies and communities and by continuing to support agrifood businesses, as I know this Government will, we ensure these businesses thrive and our local economy remains robust. Moreover, the agrifood sector in Dublin Fingal as a whole is a key driver of innovation and sustainability. We must continue to support our local farmers and agribusinesses in order that they are at the forefront of developing new, sustainable agricultural practices that reduce impacts on the environment while maintaining high productivity.
This commitment to sustainability will not only preserve our natural resources but also will ensure future generations can continue to benefit from our rich agricultural heritage. I am confident the Government, the Minister, Deputy Heydon, and the Ministers of State, Deputies Grealish and Michael Healy-Rae, will continue to support the agrifood businesses by continuing to listen to them and to listen to our farmers, our growers and to provide them with practical Government supports. Our agrifood industry plays a vital role in food security and quality. Local production means we have access to fresh, high quality food in our country and by supporting our local agrifood businesses, we are ensuring our food supply chain remains resilient.
As Deputy Ward mentioned, we have a reputation for very high quality food products in Ireland. It is known worldwide. The agrifood sector will sustain this reputation and we will continue to see it grow. As long as we continue to support the sector, it will continue to be an important part of the Irish economy. Furthermore, the cultural significance of the agrifood sector cannot be understated. It connects us to our traditions and heritage, fostering a sense of community and belonging, one of which we are very proud in Dublin Fingal West. Farm shops, farmers' markets, food festivals and farm-to-table initiatives are just a few examples of how the agrifood industry enriches our cultural landscape and brings people together.
I wish the Minister, Deputy Heydon, well on his appointment as Minister for agriculture and thank him for his recent support in respect of announcements for the tillage sector and for reopening the investment aid scheme to support growers whose farms were affected by the recent storm damage. The Minister, Deputy Heydon, and the Ministers of State, Deputies Michael Healy-Rae and Grealish, are committed to supporting our farmers, growers and agribusinesses and the Government will continue to support and invest in this vital sector. In doing so, we will not only be securing our present but also sowing the seeds for a prosperous and sustainable future. I look forward to working with the Minister and Ministers of State to support our farmers and I take this opportunity to invite them out to Fingal west.
James O'Connor (Cork East, Fianna Fail)
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I congratulate Deputy Boland on her maiden contribution. I welcome the opportunity to discuss the state of affairs on the agrifood sector in Ireland as somebody who lives on a dairy farm in east Cork. I grew up on one and am the son of a dairy farmer and my mother has worked for nearly four decades in the dairy industry. Agriculture has been the cornerstone of my upbringing and my life and it remains a very important characteristic of the economy of the constituency of Cork East.
In my first contribution on agriculture in the Thirty-fourth Dáil, I wish to highlight an issue for the Minister that is similar to that faced by GPs and other sectors of the economy, namely, the age of the Irish farmer has advanced quite considerably. The research on it is interesting in that the average age of Irish farmers now stands at the age of 58 and approximately one third of active farmers, 33%, are over the age of 65. It is something we need to worry about and we need to worry about it for a few reasons.
In the Irish economy, approximately 7% of the workforce of our economy is directly employed in the agrifood sector. In terms of the indigenous economic activity that Ireland generates, according to the most recent estimates from the Minister's Department its contribution is worth approximately €19 billion. When we really depended on the agrifood sector was in the darkest hours of the economic crash between 2008 right through to 2014. When things were not looking too bright, we depended on the success of the agrifood sector.
We have been through turbulent years. There have been impacts from the war in Ukraine, namely, the huge impact arising from the rapid increases in the cost of fertiliser because of sanctions and other things that had happened. We realised we had dependencies that had not really been discussed in relation to Belarus and fertiliser production. There were simple things like compressors, which are used in every single milking parlour, that were all manufactured in Belarus as well. There also was rapid fluctuation in milk prices.
This was all in the context of the previous Government plan, introduced when the former Minister, Simon Coveney, was Minister for agriculture. This was around the 2020 programme, which called for the Department of agriculture to double the economic output of the sector.
Many farmers borrowed heavily to invest in expansion, purchasing, long-term leases of agricultural land, new milking parlours, new bulk tanks and all of the other supporting infrastructure that is required to expand dairy facilities. Many of them borrowed very significant parcels of money. This is something we need to be aware of. I want to highlight it with the Minister in the Dáil. Coming back to my figure of that average age of 58, we need to be concerned about that. Younger people are looking on at agriculture becoming an increasingly expensive industry for that transition between generations. I do not want us to go down the road of what has happened in the UK in recent days where agriculture and food production has become so lacking in importance politically that they are putting the farming sector there in a very vulnerable position by changing inheritance tax laws. I want to make sure that we in Ireland are always cognisant of the fact that agrifood has an enormous impact in terms of what Ireland as a country, an economy and a society does for our international standards around the world. You can walk into any supermarket across North America, Germany, across all of Europe, Beijing, Japan and other regions of the world and you will see Kerrygold butter on their shelves. You will see Irish meat products on the shelves in countries that allow our exports. That is something we should be proud of and that we also need to protect. I have heard some discussion about animal welfare in the context of this discussion today. I do not really see the need to bring that up and to constantly be banging on about the negatives of agriculture. However, something we need to do more work on is telling farmers that we are proud of what they are doing and that we support them through proactive initiatives.
The last point I want to make is a concern with the upcoming Presidency. Denmark is due to take it quite soon. I refer to the live export of animals. We joined the European Union common market for access to that market. I will conclude on this final point. We need to remind it that having specific rules on Ireland as an island and penalising us for that is not welcome and we need to protect ourselves against that as well.
7:50 am
Conor McGuinness (Waterford, Sinn Fein)
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As the newly appointed Sinn Féin junior spokesperson on rural affairs, community development and an Ghaeltacht, I welcome the opportunity to contribute to this debate. As most speakers will have mentioned already, our agrifood sector is the backbone of rural Ireland and rural communities but the industry faces real challenges from market volatility, disastrous trade deals like Mercosur coming down the tracks, unfair fish quotas, tariffs and climate change. Government, in that context, must support and empower family farms and fishing communities to diversify and thrive economically. Farm economies are crucial in keeping the lights on in rural Ireland. I have to mention the delays affecting payments under ACRES. I know it has been brought up here by other Deputies. This is causing very real hardship for young farmers and I join the calls already made here today for an urgent resolution of the issue.
Government needs to take urgent steps to empower rural communities to diversify their economic base, adding value to their agricultural and fishing output in their locality by processing, branding and marketing their produce and derivatives, and through supporting microgeneration of electricity on farms and delivering dependable broadband connectivity so that family farmers and those engaged in fishing can have some hope of another income stream. Our costal communities, especially those that depend on inshore fisheries, have been neglected for decades now. These brave men and women who go to sea deserve increased support and infrastructural investment. Regarding infrastructure, I appeal to the Minister to review the regulations of the local authority ports and harbours funding scheme so that councils can apply for funding not just for works like dredging and strengthening works but for the licensing and impact assessments that are required to carry out that work. Currently, they are not able to get funding from the Department for that. This is a very pertinent issue right around the coast but in particular at Cé Heilbhic in my own constituency, where lives and livelihoods are being put at risk.
We must promote Irish seafood at home and abroad while adding to the value of the industry and diversifying the economies of fishing communities. Investing in agrifood is critical in keeping our rural communities and our economy alive. We also need to see action from Government to ensure there are homes and services available within those communities. Our rural areas are being deserted as vacant holiday homes take the place of the farmstead and the fishing village from Inishowen to Heilbhic Head. As the Sinn Féin spokesperson on rural affairs, I will work to hold this Government to account but I will also work with the Minister and with others in this House to offer policy suggestions and solutions to improve people's lives in rural Ireland and to bring our young people back to live on our lands and beside our seas.
Verona Murphy (Wexford, Independent)
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We move now to the Independent Technical Group. Deputy Paul Lawless is sharing time with Deputy Michael Fitzmaurice with three minutes and six minutes.
Paul Lawless (Mayo, Aontú)
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I raise the really important issue of forestry, particularly following the recent storm, Storm Éowyn. It caused massive damage right across the west, the north west, the midlands, and it destroyed thousands of hectares of forestry. These farmers planted under Government advice, encouragement and incentives. Indeed, these farmers followed Teagasc advice around what to plant and where to plant. This was no Ponzi scheme and yet following the storm, the farmers woke up with no forest in many cases and their pensions in real jeopardy. There has been a treble-whammy here as well because there has been a huge lost in growth of their trees, obviously increased harvesting costs as well as trees that have fallen, and the significantly lower cost of their product at the sawmill. Will the Minister please prioritise the issue of the felling licence? It is a bizarre situation where we have trees rotting on the ground and yet farmers cannot get in and salvage those trees because of delays in felling licences. Will he please expedite and prioritise farmers who have suffered as a result of windblown trees? The Minister also needs to consider a financial package in relation to this. Due to the fact that the price of the lumber the farmer is receiving is significantly lowered now and due to the reconstitution and the replanting costs, in many cases it is not viable for farmers. Will the Minister please consider a scheme that will support farmers in this really difficult time? We have listened to a debate here on farming. We need to look at farming as a viable industry because the fact is that the profits of the farming sector are landing in the factories, the supermarkets and the sawmills. The farmer is the last in the line and is really struggling. It is a big issue and we need an agrifood regulator with teeth to address the issue of viability and fair price for farmers.
Michael Fitzmaurice (Roscommon-Galway, Independent)
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First, I wish both Ministers well. I thank them for their engagement so far. It is only fair that they get the time to settle in. There are a lot of storms on the horizon for them and to judge them on over the next few years.
I brought this first thing to their attention previously and I ask both the Ministers of State, Deputies Healy-Rae and Grealish, to get involved as well. A lot of sheds have been lost during the storm. Will the Department look at that? We are able to do replacement slats so surely we should be able to do replacement roofs. I ask them to look at that.
I know issues in the line of Mercosur are on the horizon. Calf exports are being debated in Europe, as is the nitrates derogation. These are all things we will be facing over the next few months and we have to try to work together on these. The media love kicking the daylights out of farming and agriculture but everyone has to know that they need three meals a day. They might cop on sooner or later and know that they should start respecting farmers, not kicking the daylights out of them. To be quite frank about it, farming is the best life you could have if you could make a good enough living out of it. There is nothing better than going out through cattle or whatever.
We need to take on some allegations that were made about the pig industry. I was a young fella when we had farrowing pens. They are gone. It is a totally different set-up than when I was a young fella. We need to correct the record for the sake of the Dáil and that wrong information is not allowed to be put out about farmers.
On suckler cows, we know we have lost about 250,000 of them. While dairy may work in certain parts of the country, the likes of the land in the west and the north west, where the Minister of State, Deputy Grealish, is from, is more suited to either sheep or suckler cows. We need to make sure we keep a floor under that.
The nature restoration law is also coming down the line and we have to make sure we protect farmers. Another thing coming at us are the new drainage rules on peatlands. We have to make sure we look after farmers. We have to try to get young farmers in and have a retirement scheme.
It is not easy at the moment with all the bashing going on to encourage youngsters to go into farming. We must ensure that we put out a positive message in this regard. TB is a problem. We must all work together in trying to resolve it.
I pay tribute to Willie in the ACRES section of the Department. He is retiring today after 40 years. While there are many problems with ACRES, he is the one person you could ring no matter whether it was day or night. After 40 years, he deserves to be respected. We should pay tribute to him for all he has done.
Beyond that, the Minister is coming into an area that looks as if it was struck by a bomb. Many farmers have not been paid. The IT system is fully up and running. In fairness, when I talked to him the other night, the Minister said it was going to take a while to do it. It is going to take some teasing out. We must ensure we bring a bit of confidence back into this area. In Portlaoise, there is a heap of different schemes. No matter what new scheme comes out, the team there is always able to get farmers paid. I have always said that about the people involved. The team in Portlaoise is outstanding. Be it forestry or anything else - other than organic - there seems to be a problem down in Wexford, however. Consideration needs to be given to what is going on or who is calling the shots down there. Ultimately, it is not the civil servant at the bottom but someone up at the top who needs to put the procedures in place.
In forestry, a reconstitution grant was put in place down south in 2016 or 2017. However, we need to help those in forestry who are in trouble now. A heap of it has gone down on the ground. The bottom line is that it needs to be gone within a year. We need either a simple licensing system or just to get the licences out. My fear as regards licences is that there is a cohort of people who believe we should neither plant forestry nor cut it. They will object to everything.
It is great to see the number of youngsters going into agricultural colleges. If we had more land, it would be mighty. I refer to getting more land for youngsters. There is an awful pressure on land as a result of everything that is happening. I hope the Minister and the Minister of State can drive matters on. The veterinary college in Mountbellew is near the Minister of State's home area. I hear that this facility is being pushed out for another year. I hope the Minister and Minister of State can pull something back in respect of that situation.
This is not the time to go kicking new Ministers or Ministers of State; they must be given a chance. I will mark their cards over the next one to four years, if, with the help of God, we are all still here. It is not the time to be rattling now. It is about highlighting the different issues that exist.
Plastics are another issue. The price of rolls of plastic has gone up, as has the price for collection. We have a heap of it in the country. I worry about how we are doing with this in terms of viability, particularly in light of the way it is now.
Turning to women in farming, I do not think this aspect was mentioned here yet. I am talking about speakers other than the Minister. Women in farming is an important issue. Even for us in the Dáil, unless we have someone helping us behind the scenes at home, we would be lost. They should be recognised and helped.
Young farmers need to be brought into the sector as much as possible. I ask the Minister to do one thing. For the next one to three months, be it in the context of ACRES or ordinary farm inspections, I ask him to ensure that inspections are pulled back, because people are in trouble after the hammering the west, the midlands and the north west got.
The prices for cattle, milk and sheep are fairly good at the moment. It is now about trying to retain this position for the time being. I wish the Minister and the Minister of State the best of luck. I also wish the Minister of State, Deputy Michael Healy-Rae, well. We will be crossing swords if some of these things are not delivered, but I will work with them all the way.
8:00 am
John Clendennen (Offaly, Fine Gael)
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I wish the Minister and the Minister of State well for the term ahead. I know the Minister well. He has a personal story of growing up on a farm. His is a farm family. With his experience and knowledge, he brings a great amount to the Department. That is only going to benefit farmers over the term ahead.
Agriculture is undoubtedly the backbone of our economy. The local economy in Offaly is no different in this regard. We have a long and proud tradition of food production. I acknowledge producers such as the Haslam family of Mossfield Organic Farm, known for its cheese, and the Bracken family of Fox Covert Farm. I recognise them because of what they have achieved in terms of the global awards they have won. We very much have a reputation on the global stage for high-quality produce. In light of the commitment of producers and their dedication to achieving quality and innovation, long may that reputation obtain.
There are sectors that enjoy nationwide supports. I refer, for example to the areas relating to food or drink. There is a need across the wider industry in this regard. I refer to the supports given. Money spent locally in agriculture stays local and benefits the economy in a particular area. This includes farmers, input suppliers, merchants, agricultural contractors and various advisory services. On a national level, we need to ensure that we protect and grow the sector. We need to promote Irish farming and what it produces rather than demoting it. Other Deputies spoke about Mercosur. I do not think Irish farmers have ever shied away from a bit of competition. We are particularly proud of the quality of the food we produce. We do need an equal playing field, however, whether we are talking about oversupply in the market, maintaining the highest standards, implementing strict food safety and traceability or protecting our environment and reputation in the area of sustainability. We must ensure this is achieved.
In order to protect traditional farms, we must give them the opportunity to diversify and grow. For argument's sake, I have seen the local enterprise office and development company in Offaly assisting food producers. I have seen many examples of this over the years. Materials like wool were almost waste products a couple of years ago. Companies like Dooleys Wool have reimagined their businesses and are now producing a top-quality product for the local market. Such firms are now able to get a price they could never have achieved by selling overseas or relying on markets to which the cost of shipping goods is excessive. The many risks involved in that regard also had to be considered. We need to look at this matter.
In other countries, there has been a real focus on how to do not just agrifood and other agri-products but also agri-accommodation. There is an aspect of this context that we need to look at through the lens of the EU Presidency. Initiatives are already in place around traditional buildings and grant schemes. The question is how we can we maintain family farms by giving people the option to diversify and grow alternative revenue streams. It has proved successful in other areas and it is something we should be looking at here.
Turning to agricultural shows, I live in County Offaly. The Tullamore show is the largest one-day event on the island. We will have the National Ploughing Championships in the county this year. We must continue to support shows. They provide a great opportunity to showcase our producers, from those in the very early stages right through to fully-fledged farmers, and what they do.
We have talked about succession. The reality is that we must appeal to people to get involved in family farms, and they must get a return for doing so. We need to support innovation. We can look at the likes of initiatives such as the Irish Angus competition. Four transition year students from a local secondary school at home, Moya Guinan, Ben Younge, Joseph McLoughney and Jack O'Meara, with their teacher Laura Grant, applied for this competition, went through the full rigours of it, displayed calves at the shows and the National Ploughing Championships and went from success to success. They have provided inspiration and showed what can be done through innovation and rethinking and giving the power to young farmers, as well as the belief that there is a future in this sector. We must protect such people by means of the likes of the agrifood regulator.
Reference was made to payment schemes. There is a need for an agri-focused rainy day fund. I firmly believe that the message that needs to be sent out time and again from this Chamber is that we are here to support farmers, to work with them and to ensure their long-term stability and viability.
Micheál Carrigy (Longford-Westmeath, Fine Gael)
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I also wish the Minister and the two Ministers of State well. I have every confidence in the three of them as rural TDs who will work on behalf of farmers throughout the country. I have known the Minister for a long number of years. From meeting with of as Minister.
The agrifood sector has been the cornerstone of the Irish economy and rural communities for generations. It is not just about farming; it is also about processing, innovation, exports and sustainability.
It is about taking what we produce on our farms and adding value to it, creating jobs and economic opportunities throughout the country. I will talk about where the sector stands and some of its challenges and opportunities, and will highlight how my home county of Longford plays a role in that food story.
The sector is worth more than €16 billion annually, making it one of Ireland's most important industries. We export 90% of what we produce. Our food and drink exports hit €16.3 billion in 2023 with strong demand from Europe, the UK and further afield. Dairy contributed €6 billion, beef stood at €2.5 billion and prepared consumer foods, such as bakery products and ready meals, were worth approximately €2.2 billion. However, there are challenges for the sector. Inflation and energy, transport and raw material costs have increased significantly, putting pressure on producers. We have seen price fluctuations in key commodities such as dairy and beef, which impact both farmers and food manufacturers.
The agrifood sector, in particular, has shortages in processing and logistics and is struggling to find workers. I recently met McCormack's fruit and vegetable growers in south Longford, along with the IFA chairperson, who are struggling to get employees. Employees are coming in from outside this country. With the increase in the minimum wage, they are struggling to get people to pick their products. There is an urgent need to attract and retain talent, from farm workers to skilled food technologists. The challenge is balancing sustainability while maintaining productivity and competitiveness. Brexit continues to pose challenges, especially for supply chains and exports to the UK. There is a need to diversity into new markets, with Asia, North America and the Middle East offering huge potential to Irish food exports.
In my home county, we have a strong dairy and beef industry. It is home to top-quality beef and dairy farms, with farms investing in grass-fed, high-welfare systems that are in demand internationally. It is home to leading food processing businesses, especially meat processing, prepared foods and bakery products, including Pat the Baker, which is well known to us, and Panelto Foods, which has based its research and development facility in the county. We have companies such as Green Isle Foods in Longford town that are key players in frozen food production. However, we need further investment in food innovation hubs that can help small agrifood businesses in the county and allow us to expand into new markets. We have seen a rise in the artisan food businesses in our county producing everything from cheeses, organic meats and craft beverages to bakery goods. Lough Ree Distillery is producing alcohol that is now being exported. Midlands Ireland's food innovation is promoting the food industry in the midland counties of Longford, Westmeath, Laois and Offaly. Our agricultural shows, as mentioned by Deputy Clendennen, are a fantastic opportunity and need to continue to be supported to promote local food production. We need more support for direct-to-consumer sales, farmers' markets and online food retail.
There are fantastic opportunities for growth. We need to encourage more food processing and agrifood innovation at a local level rather than just exporting the raw materials. Irish food is already known for being grass-fed, high quality and traceable. We need to market this even more. There are big opportunities in the growing organic and regenerative agriculture sectors. The next generation needs clear pathways into farming and food production. We need support for training and apprenticeships, and funding for start-ups in the food sector is essential. The sector is the backbone of the rural economy. My home constituency of Longford-Westmeath plays an important role in producing and processing top-quality food. While there are always challenges, there are also huge opportunities, particularly in value-added products, sustainability and exports. We need to support farmers, processors and food entrepreneurs to ensure the long-term success of the sector. I ask the Minister to ensure that Government policies, funding and initiatives are in place to help the agrifood sector in Longford-Westmeath, and in Ireland as a whole, to thrive at home and abroad.
8:10 am
Ruairí Ó Murchú (Louth, Sinn Fein)
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I also wish the best to the Minister, Deputy Heydon, and the Ministers of State, Deputies Grealish and Michael Healy-Rae. As Deputy Fitzmaurice said, they have a stay of execution but it will be a short one.
We spoke previously on some of the issues. Everyone gets the idea of the importance of the agrifood sector and the agricultural sector to Irish society, especially rural Ireland. We know that we need to ensure the sustainability of the family farm. I have no doubt many Deputies have received even more representations on this. People spoke about the issues there are with the CAP. We know the issues that exist in relation to Mercosur, which is coming down the line for Irish farming, and does not serve anyone from a farming, monetary or environmental point of view. It particularly does not serve Europe or Ireland well. We need to ensure there is real opposition to this. We need to make sure we see continuity in the derogation from the nitrates directive. There are huge issues facing the dairy sector and many others.
We are only through Storm Éowyn. Alongside the work that needs to be done on resilience, we can all accept we will have a greater level of emergency or extreme weather events. We need to make sure we have the schemes in place. It took a considerable amount of time to get a scheme in place following the flooding that happened at the Cooley Peninsula. Farmers had to wait a considerable amount of time for payments. Some of that is being progressed at the minute, but we need to see that all happening a lot more quickly.
We all know the issues we will be facing. I accept that is why huge work will have to be done in respect of mitigations. The OPW is looking at CFRAM and whatever else, but we have to look at natural flood barriers. All these things have to be done in conjunction with farmers because that has been a failure to date. Many Members will know that if they go to IFA meetings that could be dealing with issues relating to renewables, there will be farmers looking for schemes that work, whether these involve solar panels, microgeneration, anaerobic digestion or whatever. What you will deal with are a huge number of people who are open to this. Farmers will complain and say they have to do more to get less. They will talk about the issues. I have spoken to the Minister previously about efficiencies that could be put in. People will make complaints about the Department, inspections and Bord Bia. We can ensure we can do all these things better, but we also know that farmers are only too delighted if we can offer them the schemes that work for them, and if it is a real matter of working together.
Gillian Toole (Meath East, Independent)
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Ba chóir dom labhairt go tapaidh anois. I wish the Minister, the Ministers of State and their teams the very best of luck and success in what is probably one of the most important portfolios. I will try not to repeat what colleagues have said.
The significance of agriculture and agrifood to our economy is nothing to be sniffed at. The word "vital" is used. That is derived from vita, the Latin for life-giving. I will restrict my focus rather than be repetitious on food production. It overlaps with my career in healthcare. Hippocrates said, "Let food be your medicine". When we consider the growth in the prepared consumer foods market, it is so important that Ireland's place as a primary and premium food producer is enhanced and the key people involved in that - the actual producers who are the farmers - are consulted, liaised with, listened to and included in as many boards and bodies as possible. The setting up of the Agri-Food Regulator's office is of paramount importance. That should be well resourced going forward.
In line with the farmer and the farmer's ability to produce food, there is the soil and the importance of water. I cross-checked that with the audit of land use, which is so important. It takes in the allocation for renewables, housing, amenities and food security. All these things are interlinked. As I said, consultation is extremely important. A simple thing going forward relates to the recent fall-out from Storm Éowyn. While we wait for TAMS, perhaps something simple could be done on the funding towards materials for a meitheal for simple shed repairs, etc., so that animals can be housed appropriately ensuring animal welfare, protecting pastures and preventing premature turnout, which again will have an impact on soil quality and the microbiome. That will ultimately have an impact on water tables and on the final product.
On the ultra-processed piece and prepared consumer foods, we must resource and invest in local and artisan food and drink producers. As I said, "Let food be your medicine". Essentially, what is required is a fair price for a quality product, safeguarding the consumer, the producer and the future.
8:20 am
Carol Nolan (Offaly, Independent)
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4 o’clock
I wish the Minister, Deputy Heydon, the Minister of State, Deputy Grealish, and the Minister of State, Deputy Michael Healy-Rae, well in their roles and I look forward to collaborating with them as we go forward. I welcome the opportunity to speak briefly on this core pillar of our indigenous and export market sector. It is very important and the sector has kept the lights on in this country in the bleakest of times. It is a huge contributor to the economy and therefore it is vital we protect farming livelihoods. We all know the Irish agri sector encompasses a wide range of activities: from primary agriculture to food and drink processing and manufacturing to fisheries, forestry and the equine sector. It is estimated to generate more than €8.5 billion annually. What does that really mean, however, if our producers continue to be short changed on fair pricing? I have raised this issue many times in this House. I welcome that we have an agrifood regulator in place, but it has called to be given more powers, and this has to happen as soon as possible to protect farmers and to ensure they are getting a fair price for high-quality produce.
We also need to ensure monitoring is taking place at all times regarding issues that arise that farmers bring to our attention and that need to be acted upon quickly. The bureaucracy of the schemes needs to be looked at, and many farming organisations have brought this issue to my attention. The schemes can be extremely bureaucratic and we have to try to simplify them and make it easier for farmers.
I recently submitted a number of parliamentary questions on the issue of the agrifood regulator and other matters to the Department, including the need, as I have said, to reduce the bureaucratic burden, in particular given the increasing complexity and conditionality attached to so many schemes. I welcome the Minister's reply in which he committed to reducing that burden, but we really need to see action, as I stated previously. I also asked how the Minister intended to ensure Irish farmers are adequately compensated for their role in carbon sequestration, particularly by maintaining hedgerows and grasslands. We need to make sure this is also clear. Mercosur is also a huge concern. We need clarity from the Government on this.
Noel Grealish (Galway West, Independent)
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I thank everyone for their contributions and for their messages of goodwill to the Minister, Deputy Heydon, and me. My good friend, Deputy Fitzmaurice, said they were giving us a short stay of execution. I hope I get a bit of a longer one because I am only new in this Department, while the Minister has been there for the past five years.
Listened to the debate, I note what Deputy Fitzmaurice said about going out to the land and walking through the cattle. I grew up on a farm and my job every weekend was to milk the cows on Saturday and Sunday. We used to go to 7 o'clock mass in the morning and I would have the cows milked beforehand. Every cow had a name and I would give every cow a kick to get it up, so I know what it is like to walk through the farm animals in the morning.
It is great to hear everyone talking about the importance of farming to the economy. It was reassuring to hear Deputies from Dublin talking about the agricultural sector. That is important because I think many farmers believe that no one in Dublin knows anything about farming, but there are people in Dublin who know something about farming. I have been involved in the programme for Government and it recognises the critical role the agrifood sector plays in the economy. The nature of the food business, especially one as outwardly focused as Ireland's, means events far beyond our shores can have a significant impact on market dynamics. Let us consider, however, how effectively the Irish agrifood sector has demonstrated its resilience and agility in recent years despite numerous pressures and uncertainties such as Brexit, the Covid-19 pandemic and the Russian invasion of Ukraine, which have adversely impacted the sector. Significant energy price rises and supply chain disruption have fuelled inflation and increased the challenges for farmers, fishers, processors and food businesses. What this period also demonstrated, however, is how resilient the sector is. Stakeholders worked together, with the support of Government, to ensure critical food supply chains were maintained from farmers and fishers all the way to retailers.
During the many challenges of recent times, our family farms have demonstrated adaptability and resilience by continuing to deliver safe and healthy food for Irish and international markets. Living in uncertain times, we need our farm families to be producing safe, sustainable and high-quality food more than ever. The Government has, and will continue, to support our farm families with this objective in mind. The Government and my colleagues, the Minister, Deputy Heydon, the Ministers of State, Deputy Healy-Rae, and the Minister of State-to-be, Deputy Timmy Dooley, are conscious of the challenges facing agriculture, farming and fishing. We remain vigilant in monitoring agrifood sector developments, including farm incomes, viability and structures, the performance of key market commodities, food industry trends and key economic indicators. We are aware of factors which may adversely affect the sector, including geopolitical developments and their potential to impact international trade relations.
We continue to enact policies to safeguard animal health and welfare and monitor diseases which may impact animal health and have adverse economic consequences for production outputs and livelihoods. We as a Government will continue to work at EU level to ensure we have an adequately funded CAP into future which supports our farmers and our sustainable food production goals and contributes to our climate and environmental ambitions.
Ireland's unique collaboration between agrifood stakeholders has resulted in successive, strategic plans to develop the agrifood sector. It is the envy of many other countries and has been replicated, to some extent, by EU Commission President Ursula von der Leyen's strategic dialogue on agriculture, which was supported by stakeholders across the sector. Food Vision 2030 is Ireland's most recent stakeholder-led strategy. Its vision is for Ireland to be a world leader in sustainable food systems, with environmental, economic and social sustainability at its core. This is about developing resilient production models which are economically, environmentally and socially sustainable. It acknowledges that each actor in the food chain, from farm to fork, has an important role in developing a sustainable food system. Ireland is a world leader and sustainable food systems will deliver significant benefits to the agrifood sector, Irish society and the environment.
We are matching our policies to these objectives. Delivering real and measurable improvements in sustainability will also provide the basis for the future competitive advantage of the sector. International customers for Irish products and ingredients want to know that their supplies come from sustainable sources. Equally important is economic sustainability, and one of Food Vision 2030's missions is viable and resilient primary product producers with enhanced well-being. This places the primary producers - farmers, fishers and foresters - at its centre by improving the competitiveness and productivity of primary producers, increasing the creation of value and distributing it fairly, and introducing greater diversification in production systems and incomes. It also improves social sustainability of primary producers in areas such as generational renewal, gender balance, health and safety, mental health and well-being, and wider rural development.
As the Minister mentioned, Food Vision 2030 envisions an increase in the value of agrifood exports to €21 billion by 2030. This will be built on sustainable and steady value growth. We are well on our way to achieving and surpassing that figure. Food Vision 2030 looks to protect and build on Ireland's global reputation as a trusted supplier of high-quality, safe, sustainable food to consumers at home and abroad.
As mentioned by the Minister, the latest CSO figures show that in 2024, Irish agrifood exports reached a record value of €19.2 billion, an increase of 6% in value on the €18.1 billion achieved in 2023. This is also an increase of €1.6 billion on the previous peak levels achieved in 2022. It represents a significant 58% increase in value from €11.6 billion in the decade since 2014 and a doubling from €8.9 billion in 2010.
We will review Food Vision 2030 later this year, with a view to mapping out a vision for the next ten years. I look forward to engaging with this very important exercise.
The world's population is expected to grow to almost 10 billion by 2050. This is expected to boost economic growth by 50% compared to 2013. Emerging economies have increasingly driven global agricultural market developments over the past 20 years and are projected to continue to do so over the next decade. Regional shifts in markets are expected, linked to changing demographics and new economic affluence, including the increasing role of India, south-east Asia, sub-Saharan Africa and China's increasing self-sufficiency. We will continue to support the Irish agrifood sector in remaining agile, resilient and competitive in the face of market shifts. We will draw upon the expertise of our Bord Bia colleagues to facilitate new market opportunities and encourage product diversification.
Research, development and innovation are crucial to ensuring the continued economic contribution of the agrifood sector. The Department of Agriculture, Food and the Marine, including its State agencies, is the third largest Department for expenditure on research. Since 2010 the Department has invested more than €250 million on public good research in agrifood, forestry and bioeconomic areas. Last year, just over €48.5 million was awarded to 76 successful research projects, which will see the creation of 58 postgraduate positions. The availability of research and innovation talent will be a key component in addressing the disruptive impacts of digitalisation, adopting climate-friendly farming, driving new innovative start-ups and attracting and retaining multinational food businesses. The work funded under our research calls is essential to equip farmers, foresters, advisers, scientists, policymakers and the wider agrifood sector with the tools needed to improve economic, environmental and social sustainability in the years ahead. It is also pivotal to developing the next generation of cutting-edge technologies and innovation, and building a highly skilled workforce that will ensure we are globally attractive and competitive as a food island.
I welcome the publication of the European Commission's vision for agriculture and food. It acknowledges that the agrifood sector makes an important contribution to the EU priorities of competitiveness, innovation and rural development. It is also essential to the EU's climate action and environmental protection objectives. Food security is fundamental to the EU's economic security and should not be taken for granted. I am pleased to see how the Commission's approach very much aligns with our Food Vision 2030 strategy, recognising the importance of stakeholder involvement in policy formation and the importance of all aspects of sustainability.
The agrifood sector's contribution to the social and economic fabric of our country cannot be overstated. The sector produces food and ingredients with a global reputation for quality and safety, with a livestock sector built on an invaluable grass-based production system. Global demand for high-quality food is increasing with the growing populations, urbanisation and affluence. The Irish agrifood sector is well placed to play a role in meeting this demand. I very much look forward to supporting all in these efforts.
8:30 am
Verona Murphy (Wexford, Independent)
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That is red card for the Minister of State with regard to time.
Noel Grealish (Galway West, Independent)
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I know. It was my first speech as a Minister of State.
Verona Murphy (Wexford, Independent)
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I said I had better give him the same latitude as other Members.
I do not think there is a more appropriate time than for me to mention a festival that will take place on 20 July in County Wexford to celebrate a century of harvest. Rathangan Country Fair: A Century of Harvest will celebrate every method of harvesting over the past 100 years and a world record will be set in the field. Everyone is more than welcome. I hope the Minister and Minister of State will see their way to Duncormick in County Wexford for the Rathangan country fair.