Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 414: To ask the Minister for Agriculture, Fisheries and Food his plans to ensure the future development of the agricultural industry with particular reference to meat and dairy sectors; and if he will make a statement on the matter. [25984/08]

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

As outlined to the Deputy in a reply on 21st February, plans for the development of the agrifood sector are set out in the AgriVision 2015 Action Plan, the Programme for Government, the National Development Plan and the Rural Development Plan. The AgriVision Action Plan was the Government's response to the seminal Report of the AgriVision 2015 Committee on what needed to be done to secure the optimal development of the agriculture and food industries. It contained 167 actions based on three key drivers for success, i.e. competitiveness, innovation and consumer focus.

Yesterday, I launched the Second Progress Report of the Action Plan detailing the work that has been undertaken in the two years since its publication. Substantial progress has been made, with 93% of its actions implemented. The combined effect of these and related actions has been that overall food exports rose in 2006 by 10% with a further 5% increase in 2007 to €9.2 billion.

Meat Sector

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.

Beef

Amongst the specific measures introduced to support the beef industry are:

A Capital Investment Aid Scheme aimed at increasing value added and increased efficiencies for the beef and sheepmeat 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.

Sheepmeat

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 have and will continue to be made to certain sheep farmers. 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.

Pigmeat

Over the past year the very high cost of feeding stuffs has created serious difficulties for pig producers. While there may be some easing of cereal prices the likelihood is that feed costs will continue to challenge the sector. In recent months the prices being paid to producers throughout the EU have been very high compared to recent years. This is due in large part to the scheme of export refunds introduced last December following representations by this country and other Member States to the European Commission. An aids-to-private-storage scheme that operated last November also provided some useful assistance.

Access to international markets is an important contributor to the viability of the Irish pig industry. Our pigmeat is exported to a wide range of destinations worldwide including important markets such as Japan, Peoples Republic of China and the US.

My Department maintains an extensive scheme of controls on the hygienic production of pigmeat and on the operational procedures that are required to underpin the certification of pigmeat for markets worldwide. Bord Bia's marketing initiatives cover pigmeat. The sector is often involved in overseas promotion drives which occasionally involve the participation of pigmeat exporters. My Department will continue to work with Bord Bia and the Department of Foreign Affairs and the industry to identify and develop other potential markets. Pork and bacon is included in Bord Bia's promotion campaigns for the Irish market and the Bord's pigmeat quality assurance scheme is being developed with a view to increasing membership.

Poultry

It is my policy that this 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 feeding stuffs. My Department will be implementing the recommendations relevant to it.

Dairy Sector

Processing Industry

Last year my Department provided funding of €114 million towards investment in dairy processing. A total of 19 capital investment projects were approved and awarded Government grant assistance under the Dairy Investment Fund, which will generate an estimated capital spend of €286 million at full production. The purpose of the Fund is to increase the efficiency of the main dairy outputs by supporting the upgrading of plant and buildings and to assist operators in capturing new business and in developing new valued added products. Some of these projects have already been completed and the remainder are progressing to the implementation phase.

Milk Quotas

Reducing costs and increasing scale means getting more milk quota into the hands of active and committed producers at the lowest possible cost. In order to achieve this objective my Department introduced the Milk Quota Trading Scheme for the 2007/2008 quota year, in recognition of the need for improved efficiency and long-term competitiveness at producer level. The scheme has now completed its second year of operation and has been responsible for the transfer of 320 million litres of milk quota to active and progressive dairy farmers.

At EU level, Ireland pressed for an increase in Milk Quotas for the 2008/09 milk quota year. The Commission, in its Dairy Market Report in December 2007, recommended a quota increase of 2% for all Member States from April. This proposal was adopted by the Council of Ministers in March, and the additional quota has been allocated to all active dairy farmers, giving further opportunities to the Irish dairy sector to respond to improved international dairy markets.

As a consequence of tightness of supply on EU and World Markets, prices for dairy products increased considerably in 2007 and prices reached record levels in the Autumn. Due to this market buoyancy, there are currently no internal aids or export refunds available in the milk sector. However, I will continue to keep the dairy markets under close review and will intervene when necessary with the EU Commissioner to stress the importance of utilizing all market supports available, particularly for butter, in order to stimulate demand and stabilize the market for dairy products.