Ollie Wilkinson (Waterford, Fianna Fail)
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Question 99: To ask the Minister for Agriculture and Food her views on the progress in expanding the horticulture sector here. [12204/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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With a farm output value of over €270 million, retail sales of around €750 million and with approximately 10,000 people employed across the production and supply chain, the horticulture sector is one of the most dynamic sectors of the agrifood industry. Since I came into office, I have recognised the potential of this sector for further growth and development and, accordingly, I have provided increased funding to growers and operators further down the value added chain.

Under the NDP capital grant aid scheme for growers, €13 million in grant aid has been paid to horticultural producers throughout the country since 2001 to support investments to the value of over €38 million. This year I am providing a €5.5 million grant package which will fund projects to the investment value of €16 million. My Department has now received 174 applications from growers across the whole spectrum of the industry — mushrooms, field vegetables, protected crops, nursery crops, soft fruit, etc. — representing an investment of over €30 million. Successful applicants will be informed shortly. This has been the highest number of applications to date under the scheme and reflects a very high degree of confidence in the sector. This confidence is further bolstered by reports on the importance of fresh fruit and vegetables in a healthy diet while in the case of the amenity sector, the rapidly growing housing market and infrastructural improvements are creating considerable demand for plants and shrubs.

Demand in the consumer and food service sectors is also buoyant, both for fresh and prepared chilled produce and convenient value-added products. The retail value of prepared horticultural produce has more than doubled over the last few years and is now worth over €60 million. To further drive this sector I announced awards earlier this month of €4.6 million for 13 projects under my Department's capital investment scheme for the marketing and processing of agricultural products. This brings to €9 million the total awarded to date under the NDP scheme.

Horticulture producers also benefit from EU aid under the producer organisation scheme with €5.6 million paid to ten groups in 2005. The development of producer organisations under EU regulations has made a very important contribution to the development of the sector as it enables producers to benefit from their combined strength in the production and marketing of their product.