Bernard Durkan (Kildare North, Fine Gael)
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Question 39: To ask the Minister for Agriculture and Food her plans to ensure the survival of the agri-food sector with particular reference to the implications of the WTO and the need to recognise this country's role as a food producer; and if she will make a statement on the matter. [24567/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The Agri-Vision 2015 Action Plan was produced by my Department to map out the actions needed to ensure the ability of the agri-food sector to compete in a changing national and international food market.

This Plan sets out the vision for the future of the sector in the light of a more liberalised trade regime arising from the WTO negotiations, changes in food market trends, consumer tastes and demands, and major changes in the structures of farming and retailing. The Plan is based on three key drivers:

Competitiveness: As an export-oriented sector, the agri-food must be highly competitive on EU and international markets if it is to survive.

Innovation: The modern food industry is a highly sophisticated knowledge based sector and it is essential that the knowledge-base and technical skills of the Irish industry are developed to place it in a world leading position.

Consumer Focus: Meeting consumer demands on product, presentation and price is critical to continuing success.

The Plan contains over 160 specific actions designed to ensure that the Irish agri-food sector compares to the best in the EU and in the world in terms of its knowledge base, competitiveness, innovation and marketing. The main actions proposed are as follows:

Strengthening Competitiveness at Farm Level

At EU level, Ireland will continue to negotiate an appropriate support framework that will secure a competitive milk production sector within the EU and export competitiveness on world markets.

A substantial change in the milk quota system will commence in 2007. This will be designed to release greater quantities of milk quota at a faster rate than heretofore to committed dairy farmers. This is a very important development for our commercial dairy farmers and should improve scale, efficiency and general viability of diary farms.

The genetic improvement of both beef and dairy herds will be pursued to improve milk and meat yields.

Beef processing plants will be encouraged to refine quality related pricing systems to encourage production of high quality carcases which meet consumer preferences. They should also engage in partnership and supply chain management arrangements with individual beef producers to actively match specific consumer requirements with product delivered.

The Government will continue its strong political and diplomatic effort to maximise the access of Irish meat and meat products to international markets and to seek to remove any inappropriate technical barriers that block entry to such markets.

The prospects for the sheepmeat sector will be improved through the implementation of the recommendations of the Report of the Sheep Industry Strategy Group.

Strategic funding will be provided for capital investment projects in the horticulture sector that contributes to this sector's overall competitiveness.

Investment aid and further support measures are being introduced for the organic sector.

Teagasc will implement a comprehensive advisory programme with specialist enterprise advisors to promote the adoption of proven and innovative farm production.

Strengthening Competitiveness in the Food Sector

A high-level group of CEOs of the food agencies, chaired at ministerial level, will be established to implement a fully consolidated approach towards the development of the food sector, as a whole.

Bord Bia will strengthen its strategic market intelligence capability and will develop its promotion and market development services with clear targets and objectives to meet current and future challenges.

Bord Bia has set a target of doubling the value of food and drink exports to the Far East over three years.

A Centre of Excellence will be established to service the market development needs of small businesses.

A Food Industry Committee will be established to identify and address issues impeding the development of the sector.

Innovation & Research

The food industry currently only spends about 0.3 % of sales on R & D. To survive and develop, the level of both public and private investment in the industry will have to change as will the level of applied research on product development.

Research funding for Teagasc and the food industry is made available through the competitive research funding programmes, the Food Institutional Research Measure (FIRM), the Research Stimulus Fund (RSF) and the Forestry Measure (COFORD). Funding of food industry applied research is also available through Enterprise Ireland.

Further support will be provided for R & D and market development projects in the context of the national Strategy for Science, Technology and Innovation 2006-2103 and the National Development Plan 2007-2013.

My Department is actively working with Teagasc, Bord Bia and third level institutions to improve industry research collaboration so as to foster early dissemination of food research by industry and adoption of new technologies and processes by farmers. This is an aspect of R & D which must be strengthened to underpin a competitive and profitable Irish agri-food sector.

My Department's veterinary and agricultural research laboratories will operate as science based centres and will be integrated into the national research infrastructure

The results of food R & D will be rapidly disseminated through RELAY.

My Department will play an active role in the development of a cohesive national policy approach to biofuels to ensure that maximum use is made of renewable energy materials from agriculture and forestry. Currently, the Department is finalising two new schemes in the area of renewable energy. The first is a new scheme of supports for the purchase of specialist wood biomass harvesting equipment. The second is a scheme to grant-aid the planting of willow, as a further source of bio-energy.

The Department also uses the Research Stimulus Programme to encourage research projects on biofuels and other non-food use of crops. Teagasc is also committing additional resources to this area.

Consumer Focus

My Department, in conjunction with other Departments/Agencies, will provide consumers with 'country of origin' information on beef and as soon as possible thereafter follow this up with similar information on other meat products.

Our traceability systems provide consumers with an unrivalled level of assurance on safety and are among the best in the world. This advantage needs to be highlighted for consumers and also to gain competitive advantage for our exports.

The School Milk Scheme is being updated and re-launched

The operation of the Consumer Panel is being reviewed and strengthened to ensure that an up-to-date consumer viewpoint is available on all Department activities.

Bord Bia is working to extend the Quality Assurance schemes to the main agricultural products.

The implementation of the Action Plan will increase the competitive and innovative ability of the sector and enable it to prosper in a more liberalised trading environment.