Michael Creed (Cork North West, Fine Gael) | Oireachtas source

I thank Senator Mullen for raising this matter. While I have overall responsibility for the regulation and development of the Irish poultry sector, the specific matter raised by the Senator is solely under the remit of the Minister for Finance. The matters raised are being dealt with through an amendment to the Finance Bill which the Minister for Finance is currently bringing through the Oireachtas legislative procedures. I have, however, indicated my support to the Minister, Deputy Noonan, for the initiative in the Finance Bill to ensure there is no abuse of the flat-rate VAT system, thereby ensuring the integrity of the system and its continued availability to farmers. The flat-rate system generally works well and is an established element in agri-taxation policy.

On the particular circumstances in which this producer is currently operating, the Senator will agree it would be inappropriate for me to comment directly on the detail of it. The issue of where and to whom suppliers send their produce and the nature of their relationship with their processor is a commercial arrangement in which no Minister for Agriculture, Food and the Marine can have any role. That said, it would be a matter of some concern if any supplier suffered adverse consequences solely as a result of drawing attention to alleged wrongdoing in any part of the agrifood sector.

On the wider issues, the poultry sector is an integral element within the agricultural economy accounting for approximately 3% of the gross agricultural output and proudly supports around 6,000 jobs, most of these in rural areas. Output at producer prices in 2015 amounted to €190 million and the value of poultry meat exports amounted to €320 million. On the back of increasing demand for poultry protein and low feed costs, the outlook for the sector is positive for the remainder of 2016 and into next year.

As part of my Department’s contribution to the development of the poultry sector, we have a range of supports currently in place. Last year we announced the opening of the new pig and poultry investment scheme under the targeted agricultural modernisation scheme, TAMS II, helping to underpin economic growth and development throughout rural Ireland. This investment reflects our ongoing commitment to the growth potential of this important sector and to the modernisation of farming in Ireland. There is also additional funding under the young farmer capital investment scheme and the organic scheme for the poultry sector. Poultry producers are also eligible to apply under the animal welfare safety and nutrient storage scheme.

Earlier this year, my Department launched the €100 million knowledge transfer group as part of Ireland’s €4 billion rural development programme. Knowledge transfer groups will be implemented for some 27,000 farmers across six sectors, including poultry. These groups will provide a key support to the agrifood sector in building its knowledge and skills base to underpin continued growth and competitiveness.The scheme builds significantly on the previous discussion group model and is designed in such a way as to ensure the farmer and adviser engage in one-to-one discussions on key aspects of a farmer’s business such as controlling input costs, environmental sustainability, breeding and herd health. This one-to-one engagement will be complemented by group-based discussion and the sharing of experience and information between farmers. I am satisfied that these various measures will greatly assist the ongoing development of the poultry industry. Food Wise 2025, the ten-year strategy for the agrifood sector published in July last year, identifies the opportunities and challenges facing the sector and sets out an enabling strategy that will allow the sector to grow and prosper. Food Wise 2025 includes over 400 recommendations on cross-cutting themes of sustainability, innovation, human capital, market development and competitiveness, as well as specific sectoral recommendations.

Food Wise 2025 foresees the creation of 23,000 additional jobs in the agrifood sector all along the supply chain from primary production to high-value added product development. The implementation process for any strategy is vital for its success. I chair the Food Wise high-level implementation committee, with high-level representatives from all the relevant Departments and State agencies. The committee reviews progress on detailed actions on a quarterly basis in order to identify and solve problems quickly. Stakeholders regularly present to the committee on priorities for particular sectors or themes in enabling and delivering sustainable growth in investment and employment to benefit the agrifood sector.

Opening markets is a priority, particularly in the context of Brexit to further increase the market opportunities for Irish food and drink internationally. We are after all an exporting nation with 90% of our food produce leaving the island. It is for this reason that we have undertaken major trade missions to Asia and Africa in recent times. In summary, the success of the Irish poultry sector, as with other elements of our agrifood sector, rests on the relationship between farmers and their processors in the first instance and further up the chain between the retailers and consumers. It is imperative that there is equal opportunity for all concerned to make a sustainable margin and I trust in the poultry sector as with others that the opportunity exists for the producer to undertake its business in such a manner.