Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I thank Senator O'Reilly for raising this very important issue, and for having raised it with me since it has emerged and become more acute. The continued development of the pigmeat sector, as the Senator knows, is a priority for me, given the pivotal role the industry plays in the national economic context, which he clearly outlined in his contribution. It is one of the largest agrifood sectors and has shown remarkable growth in recent years. The sector supports approximately 8,000 jobs, as the Senator pointed out, spanning production, slaughter, processing, feed manufacturing and services. It is an intense, focused and commercially driven sector.

Our pig farmers have always been remarkably resilient and I am acutely aware of the challenges they face. The pigmeat sector across the EU has faced significant challenges in 2021, including the impact of African swine fever in a number of member states and, as a consequence, the loss of third country markets. This has had a knock-on effect on supply and prices within the Single Market. The average price paid for pigs in Ireland has fallen as a result in recent months, in line with trends across the EU. The 2021 average price was over 8% lower than that of 2020. As of 30 January, the average grade E pig price came in at €141 per 100 kg, just under 7% lower than the same week last year. However, this is still above the EU average price.

At the recent European Council of agriculture ministers, I clearly expressed my concerns regarding the difficulties facing our Irish pigmeat sector, including the ongoing impact of increases in fuel, fertiliser, feed and energy prices over recent times, which are putting real pressure on margins, and the sustained nature of the difficulties being experienced on the pigmeat market. I sought a rapid deployment from the European Commission of appropriate solutions on both issues. I also met members of the IFA national pig committee last week to discuss concerns.

Following this, the Minister of State, Deputy Heydon, and I met the banks to discuss the current challenges in the pigmeat sector and the importance of their ongoing financial support. At this meeting the importance of the sector was emphasised as well as its overall resilience and the importance of the banks' supports for their customers through the current downturn in the business cycle. The key message was that farmers experiencing cash flow difficulties should engage with banks as soon as possible to discuss options and that the banks remain committed to supporting their customers in the period ahead. I am also engaging with the feed industry to determine what it can do for farmers and customers.

Separately, the Minister of State, Deputy Heydon, and I met the Strategic Banking Corporation of Ireland, SBCI, to discuss the Brexit impact loan scheme and Covid-19 credit guarantee scheme, both of which are financed by the Department of Agriculture, Food and the Marine, in partnership with the Department of Enterprise, Trade and Employment. These finance schemes can be used for working capital and include features that address the current financial challenges facing pig farmers.

We are all aware of the cyclical nature of the commodity markets which, for the pig sector at this time, is very much compounded by the rising input cost of feed and energy. During this period, maximum flexibility of financial matters is needed to ensure the ongoing viability of those in the sector.

The Minister of State, Deputy Heydon, last week chaired the round table on the pigmeat sector and had a further detailed discussion with stakeholders, including farming representatives and the processing and feed industries on the current difficulties. In terms of State supports, at the round table Bord Bia outlined the significant efforts being made to promote quality assured Irish pigmeat in the domestic and export markets - 50% of our pigmeat goes to the domestic market. Teagasc also outlined the dedicated advisory supports available.

I and my Department continue to monitor the market situation closely and are examining possible measures to assist in supporting farmers through what is a very challenging time. It is a truly unprecedented time for the pig sector and I very much stand with farmers at this time, as does the Minister of State, Deputy Heydon, and we are working hard to find workable solutions. We will meet many pig farmers from throughout the country later this afternoon.