Bernard Durkan (Kildare North, Fine Gael)
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Question 149: To ask the Minister for Agriculture, Fisheries and Food her plans to ensure the future development of the agricultural industry with particular reference to meat and dairy sectors; and if she will make a statement on the matter. [7344/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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Plans for the development of the agri-food sector are set out in the AgriVision 2015 Action Plan and in the Programme for Government, the National Development Plan and The Rural Development Programme, The Agri-Vision 2015 Action Plan sets out a comprehensive range of actions with the objective of developing an agri-food industry that attains optimal levels of efficiency, competitiveness and responsiveness to the demands of the market while respecting and enhancing the physical environment.

In relation to meat, the Action Plan points out that the short-to-medium term goal of the meat sector, especially beef, is to ensure that high market penetration in the EU is consolidated and developed, while also recognising the importance of access to commercially attractive third country markets. The challenges facing the sector are varied and it is essential that it continue to adapt positively and efficiently to evolving market trends and consumer demands. Consequently, and in line with the Agri Vision 2015 Action Plan, I have put in place a number of measures and supports, which, I believe, will support the industry in positioning itself to face the challenges posed by ever evolving markets. These initiatives cover every aspect of the "meat chain", from producer to the consumer.

Amongst the specific measures introduced to support the beef industry are a €100 million Capital Investment Aid Scheme aimed at increasing value added and increased efficiencies for the beef and sheep meat industries at processing level; a nationally funded Suckler Welfare Scheme aimed at improving animal welfare and contributing to the improved quality and viability of suckler herds; a Beef Forum to examine the various issues arising in the sector and to consider appropriate responses. In addition, Bord Bia is intensifying its promotional measures to publicise the positive response of the beef industry to an ever-evolving market. These initiatives complement and underpin the existing quality assurance schemes and the advances in breed improvement being developed by ICBF.

The Sheep Industry Development Strategy Group set out a series of recommendations covering areas such as production, research, advice, processing and marketing. The objective is to facilitate the development of a more profitable sheep sector in Ireland covering production, processing and marketing. Most of the recommendations in the Report fall to be implemented by the industry itself and of their nature will take time for their effects to be seen. My Department is playing its part by providing assistance for breeding, processing facilities, mechanical grading and quality assurance. Other aspects of the Group's report are also being pursued and sheep farmers are major beneficiaries of various schemes being operated by my Department. Under REPS 4, a new mixed grazing measure is specifically targeted at them.

Payment from the National Reserve of the Single Payment Scheme will be made to certain sheep farmers. I am pleased that individual allocations of the €6m available commenced last week and payments should begin to issue shortly. This will result in payments of some €42m up to 2013 in the areas concerned. The downward trend in lamb consumption in certain markets presents a real challenge. To address this, Bord Bia is collaborating with its French and British counterparts on a 3 year generic lamb promotion on the French market to promote lamb to younger consumers.

Currently, the very high cost of animal feed is creating serious difficulties for pig producers. There are some positive signs on the horizon regarding increased availability of cereals arising from the relaxation of set-aside rules, increased cereal production and temporary suspension of certain import duties. Teagasc estimate a 20% increase in cereal production in Ireland this year. I have worked with my colleagues in Brussels and the European Commission to bring in schemes of assistance for the pig sector. An aids-to-private- storage scheme last November took almost 100,000 tonnes temporarily off the market. The export refund scheme introduced last December, which is still in place, has greatly helped to stabilise the market at what is normally a difficult time of the year. At the EU Council of Ministers last Monday, I and a number of colleagues pressed the Commission on supports for the Pig meat sector and the Commission undertook to come forward with a relevant proposal related to private storage at today's management committee. Bord Bia has conducted an intensified pork and bacon promotion programme in recent months. The Bord is expanding the pig quality assurance scheme, which is an important tool in promoting consumer confidence.

It is my policy that the poultry industry should develop to its full potential and be in a position to meet the demands of today's consumers and withstand the very strong competition from abroad. The Poultry Expert Group was set up to review the main factors impacting on the poultry and eggs industry and draw up relevant action points. The group was comprised of various industry players including producers, processors, packers, feed suppliers, relevant State bodies etc. The final report of the Group contains recommendations concerning such matters as poultry meat, labelling, animal welfare, environment protection and feedingstuffs. My Department will be implementing the recommendations relevant to it.

Bord Bia, working in conjunction with the poultry industry and my Department, has in operation the very successful poultry and egg Quality Assurance Schemes which are viewed by consumers as a guarantee of quality and I am confident that the market position of our poultry will be enhanced as a result.

Last year through funding provided by my Department, I launched a Dairy Investment Fund. A total of 19 capital investment projects were approved and awarded Government grant assistance of €114 million, which will generate an estimated capital spend of €286 million at full production. The Fund will support capital investment related to the processing of dairy products, to underpin competitiveness and viability of the dairy industry in Ireland. One of the key aims of this package is to generate greater efficiencies for Irish dairy processors, which will support better prices paid to producers. These projects are now proceeding to the implementation phase.

When I introduced the Milk Quota Trading Scheme for the 2007/2008 quota year, I recognised the need for improved efficiency and long-term competitiveness at producer level. Reducing costs and increasing scale means getting more milk quota into the hands of active and committed producers at the lowest possible cost. The new scheme is a more open market system of transferring milk quotas, and included a market exchange for the first time, with buyers and sellers offering and bidding for quota. A total of 300 million litres, or 6 per cent of the national pool, was offered for sale on the first two exchanges, with 200 million litres successfully traded and made available to milk producers for the current milk quota year.

After a comprehensive review, the Trading Scheme has been further improved, with a particular focus on Co-op areas where little or no quota was traded because of local supply/demand factors. A third exchange took place in December and a total of 80 million litres of milk quota was offered for sale, with 66 million litres successfully traded. Of this total, 49 million litres was sold on the exchange at prices ranging from 12 to 45 cent per litre, and 17 million litres was sold through the priority pool at the maximum price of 12 cent per litre. A fourth exchange is scheduled for the spring of 2008, and quota traded on these exchanges will be available to milk producers from April 2008.

At EU level I have pressed for an increase in Milk Quotas for the 2008/09 milk quota year. I expect that this matter will be finalised in March giving further opportunities to the Irish Dairy Sector to respond to improved international dairy markets.