Bernard Durkan (Kildare North, Fine Gael)
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Question 394: To ask the Minister for Agriculture, Fisheries and Food the comparisons that have been made with prices received by the producers for the full range of agricultural products here and throughout the European Union; if he has identified discrepancies; and if he will make a statement on the matter. [25963/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Agricultural production in Ireland and the EU must be viewed in the context of a reformed and evolving Common Agricultural Policy (CAP), with much more competitive EU and world commodity markets. As a result of the reformed CAP farmers can now take advantage of the freedom to farm exclusively for the market. They can focus on meeting the requirements of the consumer in a competitive manner.

Irish Agri-food related exports in 2007 totalled approximately €9bn. To survive and grow the sector must be highly competitive on EU and international markets. Competitiveness is not optional, at either producer or processor level, for a sector that is so export-oriented. In this situation, producer prices across all commodity markets will obviously vary from Member State to Member State depending on prevailing market conditions and the comparative advantage or lack thereof that exists in that Member State. For example, prices of Irish beef have tended to rise in line with prices in the UK and Continental Europe, where the majority of our production is consumed. At times when the supply of product on the EU market is tight, beef prices in Ireland tend to rise at a greater rate, because such a high percentage of our production is exported to a range of beef deficient EU markets. With regards to cereals, the EU market price is currently buoyant, with the traded price of grain in Ireland well above the basic intervention price.

In Ireland, agricultural output (producer) prices increased by almost 10% in 2007, primarily attributable to increases for cereals, milk and vegetables. The latest data (April 2008) shows that the (unadjusted) Irish agricultural output price index was 16.3% higher than in April 2007. The indices for cereals, milk, cattle, poultry, pigs, vegetables and sheep varied considerably and were up 67.7%, 26.8%, 14.1%, 11.9%, 8.4%, 6.7% and 4.2% respectively. By comparison, in the first quarter of 2008, the EU output price index increased by 15.8% compared with the same period in 2007 with a similar range of increases across the various commodities.

Bernard Durkan (Kildare North, Fine Gael)
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Question 395: To ask the Minister for Agriculture, Fisheries and Food the extent to which the food industry here is keeping pace with international developments in the area of precooked, frozen or oven ready products; and if he will make a statement on the matter. [25964/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The Irish food and beverages sector currently export over €8 billion, of which prepared consumer foods and seafood amounts to over €2 billion. Some 70% of food is exported to EU markets, with the UK receiving 48%.

In addition to health and well-being, and taste or quality, convenience is a significant driver in the very competitive consumer foods market and customers demand products that require little preparation or cooking time. An ever increasingly sophisticated and demanding consumer is supplied through a highly concentrated retail multiple grocery sector. The multiples, in turn, demand safe, high quality, good value, innovative branded and private label products from Irish food processors and suppliers.

The Irish prepared consumer food processing sector has proved its efficiency and effectiveness in supplying the retail multiples both in the home and export markets, where they are subject to stiff competition, particularly in the current economic climate. The bulk of Irish food products are exported to the UK market, where Irish companies have been particularly successful in gaining significant market share. Seafood processors have also been successful in recent times in entering new markets in the Far East.

Irish food processors would not have achieved the success they currently enjoy if they had not succeeded in keeping abreast of both market trends and technological developments in the fast moving and extremely competitive consumer global foods market. My Department, working in conjunction with the promotion and development agencies, recognises that to continue to satisfy the very demanding standards and requirements of the retail multiples, Irish food processors need to achieve high levels of innovation and competitiveness. Assistance is particularly focused on developing company's management, innovation and marketing capabilities.

A number of company clusters in innovation and world class manufacturing are currently in existence, whose objective is to keep abreast with developments in these areas, facilitated by Enterprise Ireland, Bord Bia, BIM and Udaras na Gaeltachta. Participating companies have in the recent times visited centres of excellence overseas to ensure this is achieved.