Written answers

Thursday, 8 March 2007

Department of Agriculture and Food

Food Industry

5:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 252: To ask the Minister for Agriculture and Food her vision for the growth of the food production sector in the future; and if she will make a statement on the matter. [9354/07]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The landscape in which the industry operates is changing rapidly. All elements of the landscape including policy, the regulatory environment, retail and foodservice buying-power/configuration, consumption trends, supply structures, and production/processing technology are changing — with the pace of change increasing.

The Agri-Vision 2015 Report sets out a vision identifying the delivery of safe, high-quality, nutritious food, produced in a sustainable manner, to well-informed consumers in high value markets as the optimum road for the future of the Irish food industry. The 160 actions in the Agri-Vision Action Plan, which I launched last year, form a coherent strategy for implementation, which is reinforced by the 2016 Partnership Agreement and the National Development Plan (NDP) 2007-2013.

The agriculture and food elements alone of the NDP will account for total public expenditure of €8.7 billion and together they constitute an integrated package that addresses the overall developmental needs of the sector and specific requirements in the areas of competitiveness, consumer-focus and innovation.

The sector will also benefit from the huge investment in transport and other infrastructure in the NDP, which is key to sustained competitiveness and to growing sales and exports. Agribusiness enterprise will also have full access to the generic industry supports in the NDP for research, technology, knowledge building, skills and people and will benefit from the increase in NDP funding for food research. My Department will double funding of public good food research and expand funding of research back through the food and production chain.

In addition, some €289 million is provided in the specifically in the Plan for the food industry for capital investment and marketing. A capital investment envelope of up to €200 million will underpin huge investment in key areas of the food industry. This includes a core €100 million fund to support investment of €300 million in the dairy sector for which evaluation of proposals is underway; an investment fund of up to €50 million, which will shortly be launched for the beef sector, and funding of projects in other Annex I sectors which have been approved. Some €90 million will be provided for marketing including funding for An Bord Bia for generic promotion, market supports in line with EU rules, promotion of quality and quality assurance.

The fact that food and drink exports exceeded €8 billion for the first time in 2006 despite competitive challenges augurs well for its resilience and continued importance to the economy. I am committed to the detailed strategies and mechanisms established under Agri-Vision 2015 plan and the National Development Plan to enable agribusiness enterprise continue to develop to its full potential.

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