John Carty (Mayo, Fianna Fail)
Link to this: Individually | In context

Question 135: To ask the Minister for Agriculture and Food her views on the progress in expanding the horticulture sector here. [24471/06]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

The farm-gate production value of the horticulture sector continues to expand and is now estimated at €300 million.

The key issue which has impacted on the development of the horticulture industry as a whole in recent years is the increased concentration at retail level with the consequent significant change in the supply chain. My Department, recognising the marketing advantages and challenges of consolidation and scale, has contributed to the development of the industry, particularly through its grant aid schemes under the National Development Plan. These schemes have been a catalyst for investment and growth and have assisted producers to upgrade or develop new production facilities and have also enabled commercial enterprises to improve marketing and processing facilities.

The scheme to assist capital investment on farms under the National Development Plan aims to promote the specialisation and diversification of on-farm activities, improvement in the quality of products and to facilitate environmentally friendly practices and improved working conditions on farms. Since 2001 nearly €13m in grant aid has been paid to horticultural producers throughout the country to support investments to the value of €38m. In 2006 a further €6.5m grant package will fund projects to the investment value of €18.5m in respect of 163 applications recently approved by my Department. All areas of horticulture are eligible for the scheme.

Demand in the consumer and food service sectors is buoyant, both for fresh and prepared chilled produce and convenient value-added products. The retail value of prepared horticultural produce was estimated to be €59.8m in 2004, representing a two-fold increase on 2001 and there are real investment opportunities and challenges for development of this sector.

Under my Department's Capital Investment Scheme for the Marketing and Processing of Agricultural Products a total of €10.5m has been awarded in the horticultural sector under the NDP to date. €7m was awarded in respect of 15 projects in the Fruit and Vegetable sector earlier this year.

In addition, horticulture producers benefit from EU aid under the Producer Organisation scheme. €5.6m was paid to 10 recognised Producer Organisations 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.