Liam Twomey (Fine Gael)

I welcome my county colleague, the Minister of State, Deputy Connick, to the Seanad for this debate. This will be a pivotal issue for Ireland in the next couple of years. Agriculture has regained significance with the downturn in the economy. It is an indigenous and well organised industry that continues to offer potential for Ireland. We talk about changes that will happen under the Common Agricultural Policy after 2013, but we should also talk about the history of agriculture in Ireland in the last 50 years.

Technological changes on the farm where food is produced have been massive. There has also been massive Government intervention in the agriculture sector by a number of Governments during the years. This has improved food production, the quality of that production and the quality of the product we supply to European markets. That technological change has occurred across the sector. In agri-business there have been massive changes in food processing and marketing. In earlier years we produced food, processed it very marginally and exported it. Now there is massive value added to the produce we export. However, there is still scope for Ireland to develop its agriculture business, give support to indigenous producers, both small and big, and maximise the return for the economy.

The agricultural co-operatives were the mainstay of Ireland's agri-business for most of the 20th century. Then the public limited companies, PLCs, came into being. They are now seeking to disconnect themselves from the co-operatives from which they emerged. This offers both threats and opportunities to agriculture for the future. We should hold a separate debate on the future role of co-operatives and PLCs. It must be acknowledged that one of the biggest changes in agriculture, with potential to improve the economy in terms of job creation and adding value to product, is the emergence of many small indigenous producers of very specialised products. They have great scope for development in export markets if they are given support by the Government. However, they are hindered because they have neither the capital nor the wherewithal to market their products.

I refer to another great visionary of Irish business, Sir Anthony O'Reilly, who is now better known for his role in Independent News and Media, but he started his career in the agribusiness sector with Kerrygold. He was one of the first to catapult it into the international marketplace. We need more people with his vision with a focus on the value-added products of the numerous small producers involved.

The post-CAP period will entail significant changes in the agribusiness sector. The Minister of State is well aware there will be significant cuts in the overall CAP budget and changes in how the money is spent. The European Union has been enlarged and the new accession countries have underdeveloped agriculture sectors. These countries will be looking for an increased share of a smaller pie. Ireland must, therefore, make a strong case for itself if good support from the European Union is to continue to be received under the Common Agricultural Policy. We must emphasise the importance of the rural economy, the role played by agriculture in rural Irish life and in the social fabric of communities. Our society is not as urbanised as in many other European countries. We still have a significant rural community whose way of life which must be protected.

We must also protect the quality of Irish food. We cannot compete against the produce of other countries outside the European Union. This is often overlooked by the Union because it wants to find sources of cheaper food. For example, an Irish cow or any Irish animal has a quality passport, but the same does not apply in other countries supplying significant amounts of produce to the European market. There should be stricter regulations for food labelling. A chicken produced in Ireland is subject to significant quality controls and standards of animal welfare, yet the same standards do not apply to chickens imported from Thailand and other countries in the Far East. Such chickens are imported into a European country, re-labelled and sold as produce of that country. We cannot compete with such produce. The Minister of State needs to fight for our produce when he goes to the European Union and insist that these other products be clearly labelled for what they are. European citizens should be asked if this is the quality of food they wish to buy or whether a higher standard should be insisted upon. Food security is important. We should insist that the basic staples within the food chain be protected and that quality control should form part of the process to ensure food security. We should ensure a quality product is available to the European consumer, as we do not wish to have health scares in the future following the importation of food of dubious quality.

There is a constant battle between producers and processors; the family farm is competing with agribusiness to see who receives the lion's share of the price received for the final product. The supermarkets are regarded as the winners by earning the highest profits from the sale of family farm products; however, there are a number of middlemen who also make a profit. We must try to ensure everybody receives his or her fair share for what is produced on Irish farms, otherwise the business cannot be developed. There is no point in just one sector of the food chain benefiting from the profits and perhaps putting the family farm out of business, which would result in the production of a lower quality product from another country.

We have many issues to deal with in the agriculture sector and the Minister should deal with them, as well as the major changes in the Common Agricultural Policy post-2013. This is the biggest single issue we will face because it will have such a massive effect on the potential incomes of family farms, but the other issues are just as important because they can help to sustain and develop our agribusiness, of which we are rightly proud.