Enda Kenny (Mayo, Fine Gael)
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Question 723: To ask the Minister for Agriculture and Food the alternative enterprises that will be offered to farmers following the closure of a meat processing factory (details supplied) in County Kerry; the efforts made to protect this important local enterprise; if she will assist the suppliers affected; and if she will make a statement on the matter. [14154/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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You will be aware that this company went into receivership in October 2001 and a liquidator was appointed in 2002. The payment of monies owed is a matter to be resolved between creditors and the liquidator. Consequently, it would not be appropriate for me to intervene in this matter.

Notwithstanding the closure, however, I would point out that the Irish beef sector remains competitive. Production at export plants, during 2006, rose by almost 5% to some 550,000 tonnes, while cattle slaughterings amounted to some 1.7 million head. 2006 also saw further growth in beef exports. In excess of half a million tonnes, or more than 90% of total production, was sold abroad, most of it going into the high value EU market. Together with the increase in output and exports, the upward trend of recent years in prices also continued. Across all classes and grades, prices rose, on average, by 8% last year, reaching their highest level for many years.

As regards the sheep sector, 2006 proved to be a stable year. Despite major difficulties in our largest market France, prices, it should be noted, recovered during the course of the year, and were up 2% overall. However, supplies across the EU are forecast to decline over the coming years, a factor which should strengthen prices.

To support these sectors in responding to the very real challenges they face on an on-going basis I announced, last year, a number of initiatives that will assist them in cementing the achievements already made and better equip them to face the ongoing challenges of a competitive marketplace. These will complement and underpin the Quality Assurance Schemes for both the beef and sheepmeat sectors.

A Capital Investment Support Scheme for the beef and sheepmeat primary processing sectors was announced in November 2006. The rationale for this scheme is to assist the industry in further strengthening competitiveness and efficiency. The support package, amounting to €50 million, will trigger overall investment of €120 million. The aid scheme, funded by the Department, will be managed by Enterprise Ireland, the state agency responsible for implementing such state aid packages.

Proposals for the introduction of an Animal Welfare, Recording and Breeding Scheme for Suckler Herds were submitted to the European Commission in December 2006. The scheme, which is subject to EU approval, is designed to encourage suckler farmers to achieve higher standards in animal welfare and husbandry and to record data for breed improvement purposes in order to assist both quality and productivity. A budget of €250 million is being provided over the duration of the scheme.

The Sheep Industry Strategy Group, which I established, produced its report in June 2006. This contained a number of important recommendations aimed at developing the sector and these are now in the process of being implemented. I believe these measures, combined with our high levels of food safety standards, will not only contribute to underpinning the strategic and coherent development of these sectors, but also agricultural incomes.