Written answers

Thursday, 21 February 2008

Department of Agriculture and Food

Food Industry

5:00 pm

Photo of Deirdre CluneDeirdre Clune (Cork South Central, Fine Gael)
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Question 14: To ask the Minister for Agriculture, Fisheries and Food the way she will support and develop the food industry; and if she will make a statement on the matter. [31177/07]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The food and drink sector plays a vital role in the Irish economy contributing 8.6% of GDP and exports of over €8 billion in 2006. It is the largest indigenous industry both in terms of manufacturing and consumer spend and I am committed to both protecting and indeed developing this key industry. The sector is important not only in the overall economic context but also for sustaining economic development and employment in regional and rural communities. Some 50,000 people are directly employed in the food and drink processing sector, supporting 110,000 agricultural jobs and a further 60,000 are employed in distribution and ancillary services.

The reform of Common Agricultural Policy in 2003 represented a fundamental shift in the EU support framework for agriculture and food. The CAP is now based on the principles of market orientation and sustainability. Ireland was the first country to fully accept decoupling and we have successfully introduced the single farm payment. However this represents but a first step in the transition by the agri-food sector to a more market oriented regime. The sector must adapt to the demands of a less supported marketplace, which is subject to increasing trade liberalisation and is rapidly evolving.

In response to the challenges and changes impacting on the agri-food sector I launched the Agri-Vision 2015 Action Plan. This sets out the actions required to ensure the development of a consumer focused, competitive and sustainable agri-food industry capable of meeting the challenges post CAP reform of more liberalised markets and broader societal demands on the sector. The report took on board the views of the food industry, farming representatives, academia and other government strategies and policy papers including the National Strategy for Science Technology and Innovation which explicitly recognised the crucial importance of the development of a sustainable and competitive food and agriculture sector and the key role of research and innovation in that regard.

The 2015 Plan identifies the delivery of safe, high-quality, nutritious food, produced in a sustainable manner in high value markets as the optimum road for the future of the Irish food industry in the light of the changes which have already taken place or are anticipated over the next decade. The 160 plus actions form a coherent implementation strategy, and were subsequently reinforced by the 2016 Partnership Agreement and the National Development Plan 2007-2013.

Good progress has been made since the Action plan was launched a year and a half ago. Over three-quarters of the actions are completed or being implemented on an ongoing basis. Considerable public funding has been put in place. The agriculture and food elements of the NDP will account for total public expenditure of €8.7 billion and the Agri-Vision action plan will be the key vehicle for delivery.

Some of the key measures introduced include the new milk quota trading scheme; a capital investment envelope of up to €200 million to underpin huge investment in processing scale, efficiency as well as development of value-added products; a new Rural Environment Protection Scheme to support the environmentally friendly production; a new animal welfare scheme; increased funding for enhanced marketing through An Bord Bia and a substantial increase in funding for research and development as well as the promotion of local and regional food production.

My Department has also intensified its engagement with the food industry at all levels under a variety of structures set up under the Agri-Vision Plan, which includes food industry and food agency committees.

I am confident that the investment this Government has committed over the next number of years, my Department's Agri-Vision plan and the structures I have put in place to involve industry together with the dynamic nature of our agri-food industry will ensure that it can meet the challenges that lie ahead and continue to develop as a supplier of high quality products for world-wide markets.

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