Bernard Durkan (Kildare North, Fine Gael)
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Question 267: 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. [20707/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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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. Substantial progress has been made to date with 98% of its actions implemented. The combined effect of these and related actions has been that:

The value of agri-food exports increased by 17% from €7.8 billion to €9.2 billion.

The Government Asian target, of doubling food and drink exports to €400 m by 2009 million, was reached two years ahead of target.

Exports of Irish beef to the EU rose from 145,000 tonnes in 2005 to 245,000 tonnes in 2008, with 95% of beef exports destined for the high-value EU markets, compared to over 50% in 2000.

Capital funding was provided for both the dairy and beef /sheepmeat sectors to increase efficiencies in processing and improve their market sustainability.

A new milk quota trading scheme was implemented from 2006 onwards to facilitate quota transfers and to contribute to more competitive milk production. Testing of milk constituents was extended to include milk protein.

Participation in the beef quality assurance scheme increased from 4,000 to 22,000 producers while lamb producers also increased their involvement in their QA scheme from 3,750 to 7,000 participants.

The implementation of the wide range of actions in the AV2015 Action Plan has strengthened significantly the sustainability and competitiveness of the agri-food industry and has enabled it more successfully compete on the global markets.

Addressing the industry's capacity to compete successfully at home and overseas has assumed a new urgency and my belief is that a new development plan for the period to 2020 is required to maintain the impetus gained from the Agri-Vision 2015 strategy. My Department has already started the preparatory work on this plan which is focusing on the opportunities arising from a growing international food and energy crop markets, the challenges from the global economic downturn, currency fluctuations, climate change and the critical issue of competitiveness. Beef As regards the beef sector the development of non-price strategies is fundamental to meeting evolving market challenges. To this end, and in line with the Agri Vision 2015 Action Plan, a number of policy initiatives have been developed and enhanced. These include:

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;and

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. I decided to allocate some €7 million of additional funds available to Ireland under the National Reserve this year to hill sheep farmers, in the form of an Uplands Sheep Payment. It is estimated that approximately 14,000 hill sheep farmers will benefit from this payment. 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 Teagasc has prepared a development strategy for the Irish pig industry, which identifies the issues facing the sector and makes certain recommendations. The 'Pig Industry Strategy Steering Group', which includes representation from my Department and all sectors of the industry, has been established for the purpose of furthering those recommendations. This group will identify, prioritise and promote actions needed to ensure a viable sustainable future for the pig sector.

Following on from the dioxin incident, it remains important to re-assure markets as to the safety and quality of Irish pigmeat. Bord Bia has put in place a number of relevant marketing and promotion initiatives. On the Irish market, a series of promotional campaigns are in operation and focus on building awareness and loyalty to the Bord Bia Quality Mark. These underline the quality of Irish pigmeat and communicate its origin. A customer reassurance programme is continuing in export markets. 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 poultrymeat labelling, animal welfare, environment protection and feedingstuffs. My Department will be implementing the recommendations relevant to it. Dairy Sector My Department provided funding of €114 million towards investment in dairy processing and a total of 19 capital investment projects were approved and awarded Government grant assistance under the 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. This will assist operators in capturing new business in global markets and in developing new value added products. Some of those projects have already been completed and others are progressing to the implementation phase, which will continue during 2009. 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. This is being achieved through the Milk Quota Trading Scheme, which has now completed its third year of operation and has been responsible for the transfer of 375 million litres of milk quota to active and progressive dairy farmers.

At EU level, I think it is generally accepted that last November's Health Check agreement was a very positive one from a milk perspective. The decision to increase quotas by 1% each year from 2009 to 2014 ahead of abolition in 2015 was a good outcome, given the wide divergence of views among Member States. In addition, the increased milk deliveries that will be possible as a result of the downward adjustment in the butterfat co-efficient represent the equivalent of a further 2% rise in quotas in 2009. When the 2% quota increase in 2008 is taken into account, the result is a cumulative increase of 9.3% in Ireland's milk quota by 2014. I was also able to secure a very positive outcome in relation to market instruments, with all of the measures of highest importance to Ireland retained unaltered. These included intervention and private storage aid for butter, and the retention of the intervention quantity limits of 30,000 tonnes for butter and 109,000 tonnes for SMP.

Again on the domestic front, a complete overhaul of the milk quota regime was conducted in 2008, leading to the replacement of SI 94/2000 with SI 227/2008, with effect from 1 April 2008. The new regulations greatly simplify the quota regime and bring the legislative framework into line with modern farming realities. They include the elimination of unnecessary bureaucracy, the provision of greater flexibility in the transfer of quotas, and the introduction of new rules for the operation of Milk Production Partnerships that remove obstacles to partnership formation and encourage new entrants to dairying.

Most recently, I announced the allocation key for the first of the five annual 1% milk quota increases agreed under the Health Check. Three-quarters of the increase will be allocated to all active milk producers on a permanent, saleable basis, and the remaining 0.25% (approx. 13.5 million litres) will be allocated to new entrants to dairying on a scale (200,000 litres per successful applicant) designed to achieve viability from the outset. I made this move because I believe that the extent of the quota increases in 2009 presents a real opportunity to allow new entrants to get a start in dairying on a scale that is immediately viable, and I do not think we should let that opportunity pass.