Déirdre de Búrca (Green Party)

I welcome the Minister of State, Deputy Killeen, and the opportunity to make a statement on the agriculture and agrifood sectors. Like many others, I acknowledge the range of challenges facing both sectors. Senators referred to climate change, trade agreements, the pressure of large multiples pushing down the prices farmers get for their produce, the CAP reform proposals that have leaked out from Brussels, and so on.

It is unfortunate that my colleague, the Minister of Sate, Deputy Sargent, has left the Chamber, because I wanted to pay him tribute. His tenure as the Minister of State with responsibility for food and horticulture in the Department of Agriculture, Fisheries and Food has been important and timely. It is clear that, in terms of agriculture generally and in the agrifood sector, we need a new vision of how to adapt agriculture to face new and serious challenges. We need new thinking. Some of us are stuck on the same treadmill. I listened to the calls by some Senators. On the one hand, they tell us not to do anything about climate change, such as implementing a carbon tax, and, on the other hand, they ask the Government to stop the flooding and recognise the latter's appalling impact on farmers and so on. We must realise that we need to tackle the root causes of these problems. We cannot continue to throw money away in an attempt to convince ourselves that the old model of farming can continue and that we will somehow get over everything. We need to introduce new thinking into the sector, which I would argue has been achieved by my colleague, the Minister of State. In the little over two years that he has spent in the Department, he has put in place and is in the process of putting in place new structures, schemes and so on to encourage the agricultural sector to make the transition to a more sustainable model of farming, which will be essential. He has committed himself publicly and in the programme for Government to the growth and development of the organics sector.

Many of the mainstream political parties still view organic agriculture as being a niche area, an add-on to conventional farming. Much of the major international research highlights the fact that it is a central and growing area of food production and consumption across the world. A food island like Ireland could exploit many commercial opportunities, giving it a head start in developing itself as a location committed to organic farming. In the programme for Government, which was agreed a little over two years ago, we set a target of converting a minimum of 5% of acreage to organic farmland by 2012. I am happy to say that, despite many of the challenges facing the new sector, we have converted approximately 1.25% of farmland to organic and the rate of interest being expressed by those signing up to the main organic farming scheme is encouraging. There is every reason to believe that, by the end of the Government's term, we will have reached what was an ambitious target for a new sector.

The organic food production and processing sector is one of the few areas showing steady growth in Ireland and in the countries to which we send most of our conventional produce. Ireland is uniquely suited to organic farming, as we are a food producing island and have a famous clean, green image. The European public in particular has grown concerned about the impact of intensive farming on biodiversity and the environment. At the same time, farmers' incomes are coming under pressure from cheap imports. Farmers are also under relentless pressure from retail multiples to accept less for their produce. This is an issue we must address. There is an increase in the concentration of power in the hands of a few large supermarket chains. It is not peculiar to Ireland; it is an international phenomenon which has fundamentally changed the balance of market negotiating power in the food chain. It is a factor, although not the only one, contributing to the declining share of prices received by farmers.

The Minister of State is very clear that competition alone cannot act as the sole mechanism to maintain efficient markets. The careful and sensitive use of market management measures can help to maintain balance in the market, where appropriate. The use of such mechanisms can assist in the provision of fair returns for producers. The Minister of State believes there is a need at EU level to give urgent thought to ensuring markets function well and unfair practices are prevented. Because the agrifood industry is hugely important to Ireland and the European Union, the Union must safeguard its production base to meet future demand for food, feed and bioenergy. Retailers must strike a reasonable balance between granting value for customers and giving it to suppliers and producers. A balance between all stakeholders, including suppliers, producers, retailers and consumers, may be difficult to achieve but the Minister of State and the Government are committed to working towards achieving these mechanisms at EU level.

As intensive conventional farming becomes less profitable and farmers look for alternative ways to make their enterprises pay, they must consider alternatives such as organic farming. They also need to look at conventional outlets because of the pressure exerted by the larger retail multiples. They will have to look at alternative channels, including selling their produce directly to consumers in farmers' markets and farm shops and through co-operatives and distribution systems independent of supermarket control. In addition, farming must become more diversified, producing more varieties of food but also fuel, building and clothing materials. I refer to the fledgling hemp industry which appears to hold out great promise for farmers. Hemp is an extremely versatile material that can be used in food products, building and clothing materials and so on. Teagasc has done a certain amount of research in this regard. It is innovative and a move we should consider more closely and support.

I again pay tribute to the Minister of State for the work he has done in many areas. He has supported farmers' markets and helped to ensure local authorities support and provide the facilities such markets need. He mentioned the growth in demand for organic food. The Irish organic retail market was estimated to be worth €104 million in 2008, compared to €66 million in 2006 and €38 million in 2003. There was annual growth of 40% in 2007 and 2008 which compares very favourably with the figures for previous years.

There are several issues I would like to discuss, one being the threat to organic agriculture posed by genetic modification and GMOs. However, I do not have time to go into that matter in great detail, suffice it to say the Minister of State has introduced a voluntary labelling scheme. I agree with Senator Phelan that country of origin labelling is important. The Minister of State has championed this issue at EU level within the Council of Ministers, as well as at national level. It is very important that people know where their produce originates. When the pigmeat crisis happened, the issue of provenance became very important. The Minister of State intends to continue to lobby at EU level to ensure country of origin labelling is introduced but among EU member states we are supposed only by Italy.

I, again, welcome the attempts made to promote organic produce by the Minister of State. We must look in a new way at how we can make farming livelihoods more sustainable. In this regard, it appears the organic sector holds great potential for farmers.