Bernard Durkan (Kildare North, Fine Gael)
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Question 396: To ask the Minister for Agriculture, Fisheries and Food if he has examined the current and future requirements of the pig industry, with particular reference to future requirements and the ability to meet consumer demands at home and compete on international markets; and if he will make a statement on the matter. [25965/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I am aware of the current issues facing the pigmeat sector. Feed costs have no doubt become a major factor in the past year. In line with the general increases in prices of commodities world wide, the price of certain imported feed materials has increased by as much as 80%. This has resulted in compound feed prices that are 30% ahead than at the same time last year. Increased cereal planting consequent on the modification of set-aside rules should result in an easing of prices for native grains from the 2008 harvest, but prices are expected to be still well above the level that prevailed in 2006. In addition to this import duties have been abolished on certain feedstuffs coming from non-EU countries and it is hoped that this will also add to feed availability.

The present price being paid to pig producers, currently standing at €150/100kgs, is up 15% on last year has been improving steadily over the past weeks. This positive development for producers has been assisted by the availability of export refunds which has helped alleviate pressures on the EU market. Teagasc has prepared a development strategy for the Irish pig industry that identified the issues facing the sector and an Implementation/Steering Group is being currently set up. This group will consist of a small broadly based group that has the necessary stature and expertise to provide recommendations.

Pigmeat features prominently in Bord Bia's programme of promotion on the home and export markets. On the export front, Irish pork has access to important markets worldwide and pork is included in overseas promotion drives and market access initiatives. To this end new initial communications have begun with New Zealand, Australia and Vietnam with a view to gaining market access to these countries. I recognise, however, that the weak U.S. dollar is creating difficulties for exports to non-EU countries.

In the context of labelling my Department is pursuing the possibility of country of origin with the EU Commission. The pigmeat sector has proved resilient in the past and I am confident that it can address its challenges and continue to prosper.