Bernard Durkan (Kildare North, Fine Gael)
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Question 253: To ask the Minister for Agriculture, Fisheries and Food his plans for the future growth and development of the lamb industry with particular reference to home and export markets; if he is satisfied that the product is sufficiently competitive at home and abroad; if issues have arisen in the area of markets sought, lost or gained in the past two years; and if he will make a statement on the matter. [20693/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I believe that the report of the Sheep Industry Strategy Development Group sets out a proper framework for the future development of the sheep sector. While most of the group's recommendations need to be implemented by the industry itself, a number of them fall within the remit of my Department and the state agencies under my aegis and good progress has been made on them.

'Sheep Ireland' has been established to take over the Department's current breed improvement programme and develop a new one. An interim Sheep Board, comprising representatives of farming organisations and breeders will oversee this process, with the Irish Cattle Breeders Federation (ICBF) providing the technical and professional service required. My Department secured European Commission approval for a new supplementary measure in REPS 4 promoting mixed grazing of cattle and sheep. Under this supplementary measure a farmer can qualify for a top up on his or her basic REPS payment. The results of a trial to examine the feasibility of mechanical carcase classification for lamb, which was conducted last year, are being examined. It is hoped that the system will allow for the accurate and objective mechanical classification of lamb carcases and will gain universal industry support. This would aid greatly in price transparency, which is a prerequisite for efforts to improve quality and respond to the needs of the market.

The Lamb Quality Assurance Scheme was established in 2007. This Scheme is operated by Bord Bia and now has more than 7000 participants. Teagasc have developed a comprehensive plan to restructure their sheep support services, including a programme for Technology Evaluation and Transfer farms, which include hill and lowland areas. This approach will provide an opportunity to engage with sheep farmers on the use of the latest management practices and to identify research and development needs.

The actions being taken by my Department and the state agencies complement those being taken by the Industry. I am confident that taken together, all of these actions will be of significant benefit to the sector. In addition and in recognition of the difficulties and costs facing this sector, I decided to allocate the extra funds available in 2009 under the National Reserve to hill sheep farmers, in the form of an Uplands Sheep Payment. It is estimated that some 14,000 hill sheep farmers will benefit from the estimated National Reserve funds of €7 million for 2009.

Approximately 70% of Irish sheepmeat is exported, mostly to the high-value EU market. Traditionally, France has been the major export market for Irish lamb and in 2008 it accounted for more than 50% of Irish sheepmeat exports. Irish sheepmeat is however facing strong competition in France from the UK due to a weakened sterling and from New Zealand, which continues to build up its presence of chilled lamb on the EU market. The French market has also seen a decline in consumption. The impact of any reduction in Irish exports to France has been lessened by increased exports to other markets. Exports to Sweden and Denmark have increased significantly in recent years. Bord Bia will continue to promote intensively Irish lamb at home and abroad. Its actions include a generic promotion campaign with its UK and French counterparts on the important French market.