Kieran Phelan (Fianna Fail)

I welcome the Minister of State, Deputy Sargent, to the House to discuss this important issue.

The organic farming action plan, to which the Minister of State has referred, outlines more than 60 actions to assist in achieving the Government target. I congratulate the Minister of State and the Department on this comprehensive plan. The plan includes ambitious targets, such as having 5% of land under organic production by 2012, which will mean an increase from the present 44,600 hectares to 215,000 hectares by 2012. It also includes the development of a comprehensive consumer awareness plan which will disseminate information on the benefits of organic food and focus on increased marketing of Irish organic products in our main export markets. The Minister of State has clearly identified market opportunities for organic producers at home and abroad. In the current climate, it is important to recognise and avail of all such opportunities. I thank the Minister for his efforts in spreading the organic message and highlighting these opportunities.

The world organic market has been growing by 20% a year since the early 1990s and projections for further annual growth range from 10% to 50%. Ireland is well placed to capitalise on this growth in the international market, due to the successful marketing of Ireland abroad by Bord Bia. The Minister of State's statement indicates that Bord Bia research shows a major deficit in the UK market for organic beef. The identification of potential markets and the initiative of producers to target them are a key to future progress. I commend the Minister of State on his efforts to highlight these potential markets. The Minister of State's statement highlights the value of the organic retail market, which was worth €104 million in 2008. The figures presented show that this trend in consumption is growing year by year and identify a potential for further growth.

I agree with the Minister of State that the organic sector is a valuable and totally sustainable production system which offers real opportunities to farmers and the food sector. Research also shows that 45% of Irish grocery shoppers bought an organic product in 2008, indicating a 20% increase over 2003. The increase in value of the organic market to €104 million represents an 82% increase in market value over the past two years.

Today's debate is highly topical, given that the world organic market has been growing by 20% a year since the early 1990s and future projections for further annual growth range from 10% and 50%. In this context, it is timely to debate the potential future growth and marketing of this sector in Ireland. I welcome this debate and congratulate the Minister of State and his Department on the organic farming action plan to develop this important and growing sector of our farming economy.

As a farmer, I appeal to the Minister of State to promote organic Irish beef on world markets. This is a tough year for the farming community. In the past six to eight months we have had extremely bad weather and a hard spring.