David Stanton (Cork East, Fine Gael)
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Question 350: To ask the Minister for Agriculture and Food the way in which her Department supports small rural based food enterprises; and if she will make a statement on the matter. [34934/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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My Department supports the development of small rural based food enterprises directly and through Bord Bia. Grant aid is available under the scheme of investment for the commercial horticulture sector to encourage investment in commercially viable horticultural enterprises. The scheme is primarily aimed at those in rural areas who are engaged in production or are starting production projects. Over €6 million will be paid this year involving investments of €20 million bringing the total grant payable to date under the NDP 2000-06 to €14 million.

Under the NDP scheme for the development of the potato sector, grants were available in respect of capital costs of equipment and facilities for the production, storage and marketing of potatoes. The objective of the scheme was to support investment in new or improved storage and other marketing facilities by potato growers in order that they could remain in business. The scheme to date has paid out €1.36 million to 51 applicants. The scheme in 2005 applies to potato seed producers.

My Department operates the scheme of grant aid for the development of the organic sector, which supports investment both on-farm and off-farm. For on-farm investments, grant aid can be given for 40% of the cost up to a maximum grant of over €50,000. For off-farm investments, the maximum grant is over €500,000. Bord Bia, the State agency under the aegis of my Department, has a statutory function to promote, assist and develop the marketing of Irish food, drink and horticulture products. The vast bulk of the board's client companies are micro, small and medium sized, SME, food and drink and horticultural enterprises, whose annual turnover is less than € 2.5 million.

All of Bord Bia's five broad activity categories — buyer contact, food promotion, information, quality development and marketing finance — contribute to the development of the SMEs. The marketing finance activity, for example, comprises two grant programmes, the marketing improvement assistance programme and the market participation programme, both of which assist SMEs with marketing activities. The board operates a brand forum in partnership with Bank of Ireland business banking. Membership of this forum includes SMEs and the it provides a centre of excellence for brand marketing that delivers new skills to the industry, including practical brand development services, access to exclusive market research and insight and food and drink brand promotion and promotes the long-term success of food and drink brands.

Bord Bia also provides a range of support services for farmers markets, including advice and mentoring assistance and has also published a comprehensive information guide on the running and operation of these markets in co-operation with Invest Northern Ireland. With over 100 farmers markets now in operation, I recognise the important contribution they are making to local and regional economies through encouraging local produce, assisting start-ups of new businesses and creating local employment.

The growth of these markets also reflects changing consumer preferences and demand for more locally produced foods. They offer a real opportunity to promote sustainable production of more locally produced speciality and high quality artisan type products that reflect the unique characteristics of a locality and region.

Recently, my Department, in co-operation with Bord Bia and other State agencies, launched a new initiative to promote local and regional food economies with the core aim of stimulating and expanding interest in regional and local food production and encouraging the formation and growth of more small rural based food enterprises on a regional basis. The speciality and artisan food sectors have developed a new momentum and research indicates that further opportunities exist for the right products. There is considerable scope to develop new opportunities in Ireland and United Kingdom where the market is forecast to reach €7.5 billion over the next three years.