Michael Creed (Cork North West, Fine Gael)
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Question 519: To ask the Minister for Agriculture, Fisheries and Food the progress made in relation to the Programme for Government proposal to work with growers to continue to support import substitution in the fruit and vegetable sector; and if he will make a statement on the matter. [28573/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The EU prohibit supports which are targeted at import substitution. The fruit and vegetable sector contributed approx €213.7m to farm output in 2007, an increase of 14% over 2000. This sector has considerable potential for development but is experiencing strong competitive pressures, particularly from the highly concentrated retail chain and from imports. In March 2007 Bord Bia published the Strategic Review of the Horticulture Industry which identified the issues which needed to be addressed if the sector is to maximise its potential. These recommendations were taken into account in their 2008 programme. Under the new NDP 2007-2013 funding of the order of €49m is being provided for the horticulture sector to continue the modernisation process initiated in the NDP 2000-2006 for on-farm investments and marketing and processing facilities.

The EU Producer Organisation (PO) Scheme provides an important mechanism for growers to achieve greater bargaining power in the marketplace by becoming part of a larger supply base. The agreement reached in the Agriculture Council in June 2007 for a new fruit and vegetable regime should attract more growers to join POs (currently only 21 fruit and vegetable growers and 79 mushroom growers are members) as it provides for more flexible terms. Since 2000, twenty POs have benefited from EU funding amounting to €26m.