David Stanton (Cork East, Fine Gael)
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Question 107: To ask the Minister for Agriculture, Fisheries and Food the ways in which the economic downturn is impacting on the agriculture industry; and if he will make a statement on the matter. [26041/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Agriculture and food production are always subject to change and challenges and while agriculture is often more resilient to economic crises than other sectors, there is no doubt that certain parts of the industry are facing significant challenges this year, not least from low milk prices. However, the agriculture and food sector has the innate capacity to help lead the economic recovery in the years ahead. Regardless of the economic difficulties that Ireland currently faces, there is no doubt that this country is fully capable of producing and exporting high quality food and drink products. Despite the challenging market, currency fluctuations and turbulent export environment, Bord Bia estimate that food and beverage exports have declined only marginally in 2008 and in that year were worth around €8.2 billion. Its short to medium term estimates for the sector remain reasonably positive and I believe that this indigenous industry has the potential to boost export returns in the coming years.

The EU medium term outlook for agricultural commodities is for a gradual recovery supported by growth in global food demand due to population increase and also a long-term decline in the growth of food-crop productivity. These are factors that can work to the advantage of Ireland. My job as Minister is to continue to work to help the entire agri-food sector remains competitive so that it can capitalise on the inevitable global recovery.