Paddy McHugh (Galway East, Independent)
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Question 207: To ask the Minister for Agriculture and Food her views on the progress of the prepared consumer food sector within the Irish food industry. [26166/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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Ireland has a dynamic prepared consumer foods sector, which plays a significant role in the Irish economy with output of €2.6 billion and exports of €1.3 billion. Approximately 16,000 people are directly employed in 180 companies in the sector, which now accounts for 12% of food exports.

The food development agencies work closely with companies to assist them to develop, commercialise and market products that satisfy consumer demand and preferences. The key drivers of demand in the sector are changes in consumer eating habits; health focus; snacking products; cook times; food service and new eating occasions such as in-car dining.

The sector also faces challenges, principally retail consolidation, a very competitive and cost-focused international market and issues of scale. The food related measures in the national development plan are focused on enhancing the competitiveness and innovative capability of the industry and exploiting market opportunities. My Department is committed to supporting the food development agencies and the industry to achieve continued growth in value-added products and exports.