Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I thank Members for the invitation to be here. On behalf of the Government, once again I utterly condemn the illegal invasion of Ukraine. We are also mindful of the terrible toll being inflicted on Ukrainian citizens. As a Government and as a people, we remain resolute in our solidarity and support for Ukraine and we reiterate the call on Russia to cease all hostilities immediately and to withdraw from Ukraine unconditionally.

At a time tractors are in the fields, lambs are being born and cows and calves are heading for grass in Ireland, our farming brothers and sisters in Ukraine are taking up arms to fight for their country's freedom. I welcome the strong solidarity shown by Ireland and the European Union as a whole with Ukraine in the face of its illegal invasion by Russia. We will work with EU partners to consider and implement appropriate responses. This includes ensuring that food security is maintained for EU citizens, for the Ukrainian people and in the wider global context. Ireland is providing €20 million in humanitarian assistance to the UN and the Red Cross to deliver life-saving humanitarian assistance in Ukraine and in neighbouring countries. My Department also provides flexible funding of €25 million per year to the UN World Food Programme, supporting that organisation to provide a flexible timely response to humanitarian crisis. In addition to the immediate humanitarian crisis, which must take priority, there will be implications across all sectors. Considerable volumes of both global feed and fertiliser originate and are traded through Ukraine and Russia. Fuel and energy costs are also a concern for farmers and the food industry.

Since the invasion of Ukraine, I have taken a proactive approach to dealing with the massive challenges facing our sector. Farming is not alone in dealing with these challenges but our great sector is particularly exposed as a result of the invasion and we are working hard to support farm families through this situation. I met with the main farm organisations and Teagasc on 8 March to discuss the impact on Irish agriculture and supply chains. I have also met members of the Irish Grain and Feed Association, IGFA, and representatives from the fertiliser industry. I established the national fodder and food security committee with the preparation of a response to the emerging crisis in feed, fodder, fertiliser and other inputs and to developing contingency plans and advice to assist farmers in managing their farm enterprises. I will continue to engage closely with the sector as we work together on this significant challenge.

Within my Department, I established a rapid response team, chaired by the Secretary General, to actively monitor the impacts on agrifood supply chains and to contribute to the whole-of-government response to the crisis. Last week, I announced a targeted intervention package for the tillage sector and a multispecies sward initiative, worth more than €12 million to support farmers. This is an exciting initiative that will help us reduce our dependency on imported feed.

At EU level, I attended an extraordinary EU agriculture ministers meeting in early March and the Agriculture and Fisheries Council in Brussels last week. The Ukrainian agriculture minister, Roman Leshchenko, spoke via video connection at the Council about the impact of the Russian invasion of Ukraine on the agricultural sector. My Department has also been engaged at a number of other EU meetings in recent weeks to discuss food security issues, including a meeting of the European Food Security Crisis Preparedness and Response Mechanism, EFSCPRM. I outlined to my EU colleagues that Ireland has continued to strongly support the most extensive EU sanctions on Russia for its outrageous actions. We must also ensure that the actions we take in that wider context, together with the burden that must be borne, are sustainable, and this will only be the case if we work together to do all we can to maintain food security for our own citizens, for the Ukrainian people and in a wider international context.

I outlined my particular concerns regarding the impacts of the conflict on agrifood supply chains, especially on inputs such as fertiliser and feed. As the situation is obviously volatile and evolving, I stressed the need from an EU perspective to continually assess developments and to be ready to take necessary responses to minimise the impact on our collective food security.

At farm level, the fallout from the invasion is likely to have an impact on the price and availability of animal feed and fertiliser, which are vital farm inputs. Ireland imports significant volumes of animal feedstuffs, including feed from Russia, Ukraine and Belarus. Russia and Ukraine are significant sources of global cereal exports, so the price and availability of cereals globally is impacted. The availability and price of animal feedstuffs are a concern across all farming systems. The effect of these impacts is being felt most sharply in the intensive pig and poultry sectors where feed costs represent a significant portion of overall productions costs. There are sufficient supplies of animal feed at present and Irish importers are actively competing on the global market to ensure that supply continues uninterrupted. Animal feed stocks and imports are being monitored weekly by my Department. The role of Teagasc and farm advisers is crucial at this time in providing timely, practical advice for farmers on nutrient use efficiency. Fodder availability on farms for next winter depends on several factors, particularly grass growth and silage production this year.In the main, we came into the winter in decent shape in terms of fodder stocks. While there are cattle and sheep out on grass on many farms, I am conscious that the winter season is not over yet for many. We must think conservatively when it comes to silage grain to ensure that we have more than enough to cover the amount of stock on an individual farm. In essence, what farmers plan to breed, they must also plan to feed. There has been a reduction in fertiliser use on farm to date this year in response to the Teagasc soils, nutrients and fertiliser campaign. Last October, I tasked Teagasc with developing this roadmap to reduce our dependency on chemical fertiliser. It was launched earlier this year. It is a credible roadmap that will be good for the environment, as well as good for farmers’ profit margins.

I am also aware of the particular issues in horticulture and I have engaged with the sector. Energy is a significant input for many horticultural enterprises, because crops such as tomatoes, cucumbers and mushrooms are grown indoors in glasshouses and in protected greenhouse structures.

Fertiliser costs are rapidly increasing also. This is an immediate issue for all farmers. Russian fertiliser imports accounted for 22% of our total fertiliser imports in 2020. Fertiliser availability is key to ensuring sufficient fodder for next winter, as well as grass for the season ahead. There is a need to ensure the most efficient use of organic and chemical fertiliser, so that farmers have sufficient feed for their animals. We are in regular contact with the fertiliser industry on possible mitigation measures. We are inputting to cross-governmental consideration of related issues as well.

Fertiliser stocks nationally are down this year to date in comparison with last year. However, it is estimated that there are adequate supplies to meet farmers’ spring requirements, although prices have risen considerably. All farmers are encouraged to review requirements over the next two months to secure fertiliser supply, if that is not already in place. It is important that all farms put in place a nutrient management plan to set up their farms to grow the grass that is required for the year ahead. Advisors will be assisting farmers with this plan.

A recent Teagasc survey found that most tillage and dairy farmers have secured their fertiliser requirements for the moment, while dry stock farmers, many of whom plan on spending less fertiliser on grazing ground, are finding it more difficult to secure their fertiliser requirements at the moment. I would be concerned that these farmers will be unable to secure their fertiliser requirements over the coming weeks and months, because it is critical and crucial that we have enough fodder for the winter and spring coming.

The new national fodder and food security committee, NFFSC, which I have established, will play an important role in discussing contingency plans and in providing advice to farmers on how to manage under constrained fertiliser supplies, if that proves necessary. The agrifood sector relies heavily on fuel of various types, from road diesel to agricultural diesel, to marine diesel and to natural gas. The year 2020 saw fuel prices at their lowest in a decade, while 2021 and this year see fuel prices rise to their highest in a decade. This is adding a significant additional cost to farmers, processors, road haulage and the fishing industry. For many farmers, the energy cost has risen by 80% to 100% in the past year. All sectors have been impacted by the crisis, including the seafood sector. The price of marine diesel has increased significantly, and net profit margins have fallen. With weak profitability, some vessels are now close to being uneconomic with the increased fuel costs. There is the possibility that vessels will cease operations and will tie up. For most meat and dairy products, and subject to no significant disruption in food processing, there is no immediate threat to domestic food supply, because Ireland is a net exporter of these products.

Our great sector is facing one of its most significant challenges in many decades. In times like these, it is crucial that we take a proactive approach and that we take steps to limit any potential disruption to our feed and supply chains. I know that farmers, fishers and the agrifood sector will rise to the challenge and will meet it head on. By working collectively and collaboratively, we can ensure that the sector is insulated against the worst of what might come from supply chain disruption. However, the next number of weeks and months will undoubtedly be challenging, some of the most challenging periods in our lifetimes. I will support our farmers, their families and their businesses in the best way possible over the time ahead. I will continue to engage with stakeholders to consider how to manage any disruption to supply chains, in particular to animal feed supply chains, that will be caused by the ongoing situation.