Bernard Durkan (Kildare North, Fine Gael)
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Question 409: To ask the Minister for Agriculture and Food her plans for the development and expansion of the fruit and vegetable industry; and if she will make a statement on the matter. [24990/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The farm-gate production value of the fruit and vegetable sector continues to expand and is now estimated at €220 million.

The key issue which has impacted on the development of the fruit and vegetable 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. Under NDP 2000-2005, a total of €11m has been paid in grants to producers supporting investments of €31.5m. In 2006 a further €6.3m grant package will fund projects to the investment value of €18m.

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 fruit and vegetable sector under the NDP to date. €7m was awarded in respect of 15 projects in this sector earlier this year.

In addition, fruit and vegetable 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.