Bernard Durkan (Kildare North, Fine Gael)
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Question 329: To ask the Minister for Agriculture, Fisheries and Food if she has examined the current and future requirements of the pig industry with particular reference to future requirements and the ability to meet consumer demands at home and compete on international markets; and if she will make a statement on the matter. [27522/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 330: To ask the Minister for Agriculture, Fisheries and Food if she has received communication from pig producers outlining the state of the industry with particular reference to the ability to compete on the international markets; her proposals to address these issues; and if she will make a statement on the matter. [27523/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 329 and 330 together.

The representative organisations for pig producers and processors have been in contact with me about a range of issues affecting the sector. A major concern for the industry is the very high cost of feed and consequent erosion of profit margins. The rise in feed prices can be attributed to a number of factors such as (i) heavy demand for cereals in Asia (ii) the increased demand for feed materials from the biofuel industry and (iii) unfavourable weather conditions which affected many of the major cereal growing countries.

The EU Council of Agriculture Ministers has, in response to the pressures on the international cereal and feed markets, agreed to suspend the obligation to set 10% of arable land aside. This will ensure that more arable land is available for cereal cultivation in 2008.

In relation to market supports, a scheme of financial assistance for the private storage of pigmeat has been in place since 29th October. This was adopted by the European Commission in response to a request from me and some other Member States. I have also impressed on the Commission the need for export refunds for fresh and frozen pigmeat and this will be kept under consideration.

Pigmeat features prominently in Bord Bia's programme of promotion on the home and export markets. I have asked the Bord to intensify its autumn pork and bacon promotion campaign in order to ensure that the market remains firm over the coming months. Additional funding is being made available for this. The Bord Bia quality assurance schemes are also a good tool in maintaining consumer confidence and, in this context, the pigmeat scheme is well established and managed.

On the export front, Irish pork has access to important markets worldwide and pork is included in overseas promotion drives and market access initiatives. I recognise, however, that the weak U.S. dollar is creating difficulties for exports to non-EU countries.

I am working with the Minister for Health and Children towards the introduction of legislation to provide better information to consumers on the origin of pigmeat sold in this country. This will require the approval of the EU Commission, which following the public consultation process by the FSAI and consideration of its outcome, will be pursued shortly. I have introduced other initiatives to support the industry such as the extension of the farm waste management scheme to the pig sector and my Department's programme of financial assistance for the transition to welfare-friendly sow housing.

This is a difficult period for pig producers but the sector has proven itself resilient in the past. Within the framework of the EU common agricultural policy, I will continue to ensure that pig producers' problems are highlighted with a view to suitable action.