Seanad debates

Tuesday, 29 March 2022

Impact on Farming Sector Arising from the Situation in Ukraine: Statements

 

2:30 pm

Photo of Malcolm ByrneMalcolm Byrne (Fianna Fail) | Oireachtas source

Cuirim fáilte roimh an Aire. A number of points were made by colleagues that I would certainly agree with. I agree with Senator Lombard about the implications for global food security. We are seeing rising grain prices on international markets, particularly in Turkey and the Middle East. I have concerns that half of the wheat used in Lebanon is imported from Ukraine, 22% of that used Yemen is imported from Ukraine, 43% of the wheat used in Libya comes from Ukraine and Egypt gets 14% of its wheat from Ukraine. Much of what became the Arab spring was originally driven by an increase in food prices. The challenge around global food security is significant in this volatile part of the world. I would hope that at European Union level this issue is being discussed and that we are preparing to deal with it. We are already facing a very significant refugee crisis with regard to Ukraine, but if we end up seeing similar problems in the Middle East and North Africa that arise from food scarcity or food shortages, that will again fall on Europe's doorstep. I am hoping that preparations are being made at an EU level to address that.

I also agree with comments that colleagues made about the fertiliser sector. It has been very clear for a long time that there is a lack of competition in the fertiliser sector. There is evidence that price gouging is going on. I am aware that the US Department of Agriculture has now invited public comment on anti-competitive market practices in the fertiliser sector. Now really is the time that the EU takes this on. We have known for a long time that there is not sufficient competition. There is an oligopoly within that sector. I do not believe that the latter has been taken on sufficiently at EU level. It should have been dealt with previously, but, very clearly, it needs to be addressed now. I welcome the fact that the Minister has engaged closely with the farming organisations. We know this is not simply a case of being able to transform the face of farming and food production in Ireland overnight. He will be well aware, as colleagues have said, of some of the challenges the tillage sector has been facing. I am certain that the farm organisations are more than willing to step up to the plate with the necessary supports and levels of engagement to ensure they too will play their part, in the short-term, in ensuring that we have sufficient levels of food and in addressing issues around food security in the long term as well. This crisis is a humanitarian one but it has also brought to the fore those issues of food and energy security that this country has not dealt with realistically. This crisis is forcing us to deal with that now.

I have mentioned commercial flour production to the Minister previously. We continue to import more than 80% of our flour into this country. Those of us who served on the Seanad Special Select Committee on the Withdrawal of the United Kingdom from the European Union will be aware that there was an issue around rules of origin. The wheat that was coming in through Canada and milled in the UK was hit because of the rules of origin and that led to price increases. An average individual consumes 54 kg of bread and bread products every year and, therefore, we are quite significant consumers of bread and bread products. It makes sense, therefore, that we look to ensure we can commercially mill flour in this country. There are a number of mills that do it. Some of them carry out specialised flour production but there is no commercial mill production in place. More than 80% of the flour we import is coming through the UK and the events in Ukraine and Russia, even though we do not import a lot from those countries, will have an impact on the global markets. We need to take this seriously. The Kavanagh brothers have planning permission for a commercial flour mill in County Wexford and they are keen to go ahead with that. They say they have received limited support from Enterprise Ireland to date. I appreciate that the Minister cannot necessarily be seen to support one particular project but in the interests of our food security, particularly in respect of bread and bread products, we need to ensure we have a reliable supply of commercial flour. In addition to talking to the farm organisations about the production of grain and so on, I ask the Minister to also engage with the bakers and those involved in the use of flour on how we can ensure we can commercially produce flour on the island of Ireland and be guaranteed that we have that supply going into the future.

There are a series of big challenges ahead and we have to act in concert with our European partners on all of this. I know the Minister is doing that and I know he is also working closely with the farm organisations. He has our full support in that.

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