Written answers

Thursday, 26 November 2009

Department of Agriculture and Food

Agri-Food Sector

5:00 pm

Photo of Seymour CrawfordSeymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 11: To ask the Minister for Agriculture, Fisheries and Food the discussions he has had with the Department of Enterprise, Trade and Employment regarding the difficulties that the agri-food industry is facing in view of the export dependency on the UK. [43575/09]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The Government established a cabinet sub committee and inter-departmental group to promote economic recovery and measures have been taken, in particular a reduction in energy costs, to address factors currently impacting adversely on the competitiveness of the food industry. My Department has also been working closely with the Department of Enterprise, Trade and Employment and our respective Departmental Agencies, as the economic downturn, rising costs and currency exposures have translated into severe deterioration in trading conditions for food exports.

Arising from this work a number of public supports have been made available which will assist the sector: The Department of Enterprise, Trade and Employment has established an Enterprise Stabilisation Fund totalling €100 million, to be run by Enterprise Ireland, to allow for additional assistance to basically sound internationally traded companies that would otherwise struggle to survive the global downturn. A significant number of food companies have already availed of this fund. Exporting companies in the food sector are eligible for the Temporary Employment Subsidy Scheme, which was also established by the Department of Enterprise Trade and Employment, and is managed by Enterprise Ireland. Grant aid has been awarded under the Dairy and Beef and Sheepmeat Investment Funds, which are operated by Enterprise Ireland on behalf of my Department, to improve efficiencies and added value from processing. In relation to dairying, 19 projects were awarded €114m for investment of €286m. Grant aid of €69m awarded in the beef and sheepmeat sectors is expected to contribute to investment of €168m and contribute to a net increase in sales and exports of €400m by 2012. A range of horizontal aids are being used to subsidise investment in training, R&D and environmental improvements. A Teagasc/Enterprise Ireland technology transfer initiative is being developed to provide small and medium sized enterprises with access to research findings and assistance on commercialisation.

Increasing market access and diversifying the global reach of the food industry is also part of my Department's response to the difficulties caused by the large volume of product exported to a single market. Bord Bia, under the aegis of my Department, is the state agency responsible for market development of food, seafood, drink and horticulture at home and abroad, and closely monitors food exports. It has published a Strategy to boost food exports for the period 2009-2011. The strategy's six key priorities include enhancing the industry's position on its home market and export expansion with a particular emphasis on Eurozone markets.

An Bord Bia has a comprehensive set of marketing and promotional programmes in place, which have been developed in consultation with key stakeholders in the food industry. The schedule of marketing activities for 2009 has had direct regard to the impact of the sterling differential on competitiveness. An Bord Bia has also developed Post-Graduate Fellowship and Improving Innovation Success programmes which aim to identify market opportunities, develop sales leads and assist consumer foods companies to bring new products to markets.

Furthermore, an inter-Departmental Market Access Group chaired by my Department and comprising representatives from the Departments of Foreign Affairs and Enterprise, Trade and Employment, An Bord Bia, Enterprise Ireland and Bord Iascaigh Mhara has engaged in identifying potential market opportunities for the full range of Irish food and beverages, prioritisation of market initiatives and broader access issues.

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