Tom Hayes (Tipperary South, Fine Gael)
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Question 15: To ask the Minister for Agriculture, Fisheries and Food her views on the effect of rising feed costs on the pig industry; and if she will make a statement on the matter. [7077/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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70% of pig production costs relate to feed and high feed costs are having an adverse effect on the pig sector.

The price of cereals from the 2007 harvest in Ireland was up at least 50% compared to 2006. The price of imported feed materials was up by as much as 80% and those for compound feedingstuffs are running 30% higher. World prices for feed materials are being driven upwards by a number of factors including increased demand worldwide, a switch from feed production to biofuels, reduced supplies arising from the unfavourable weather conditions in several cereal producing regions and difficulties caused by the lack of synchronised authorisation processes for genetically modified feed between the USA and the EU.

There are, however, some positive signs regarding the possible increased availability of cereals arising from the relaxation of set-aside rules, increased cereal production and temporary suspension of certain import duties. Teagasc estimates a 20% increase in cereal production in Ireland this year.

Greater synchronisation of approvals of genetically modified feed is needed if a satisfactory supply of imported feedingstuffs for our pig and poultry producers is to be assured. In particular, the EU is heavily dependent on the 34 million tonnes of soyabean meal that it imports for this purpose and the vast majority of this is genetically modified.

I have worked hard with my colleagues in Brussels and the European Commission to provide assistance for the pig sector. An aids-to-private-storage scheme introduced last November, took almost 100,000 tonnes temporarily off the market. The export refunds introduced last December and which are still in place, have helped to stabilise the market at what is normally a difficult time of the year. I raised the situation in the pigmeat market with the Commissioner when I met her in Dublin some weeks ago and again at a bi-lateral meeting in Brussels on Monday of this week. At the EU Council of Ministers last Monday, I and a number of colleagues pressed the Commission on supports for the Pigmeat sector and the Commission undertook to come forward with a relevant proposal related to private storage at today's management committee.

On the marketing front, Bord Bia is expanding the pig quality assurance scheme and has conducted an intensified pork and bacon promotion programme. In addition, my Department has drawn up meat labelling regulations that would require the country of origin to be indicated on pigmeat and these are currently being examined by the European Commission which has until 14th March to comment on them.

Finally, I remain extremely conscious of the problems being experienced by the pig sector. I hope that the actions I have outlined will lead to early improvement and I will continue to keep them under close review.