Seán Barrett (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context

Question 98: To ask the Minister for Agriculture, Fisheries and Food if his Department will introduce policy measures to tackle escalating costs of animal feed and fertilisers; if he will ensure Ireland does not hinder the efforts of millers to import ingredients for animal feed; and if he will make a statement on the matter. [19606/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

The worldwide increase in the price of commodities such as cereals and oil over the last 18 months has caused the price of compound animal feeds and fertilizers to increase by about 30% and 50%, respectively. My predecessor has taken steps, through the Council of Ministers, to address some of the causes of these increases by bringing about a suspension of the obligation to set 10% of arable land aside and the elimination of import duties for cereals, as well as the introduction of an aid for private storage scheme and an increase in export refunds for the pigmeat sector. I can assure the Deputy that my Department is giving all the support it can to the feed industry, including to the importers of animal feed, to allow it to carry on its business because its success is vital to the success of our livestock industry. However, imports of feed materials must meet all the necessary legislative requirements.

In relation to fertilizers, Ireland has to import its requirement for all the inorganic fertiliser as there is no national production. The fact that worldwide demand considerably outstripped supply resulted in the significant price increase. On a positive note, the indications are that the world fertiliser shortage will be short term. The FAO circulated a press release in February 2008 entitled: "Global fertilizer supply expected to outstrip demand". In it the FAO expects world fertilizer production to outstrip demand over the next five years.