Andrew Doyle (Wicklow, Fine Gael)
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Question 672: To ask the Minister for Agriculture, Fisheries and Food his views on whether the producer groups set up with EU and Irish grants, representing the interests of growers here have been bypassed by the grocery retailers in the drive to maximise the supermarket profits; the action that he plans to take to restore the producer group as a vital part of the food retail chain; and if he will make a statement on the matter. [12509/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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In the face of ever-greater concentration of demand, the grouping of supply through producer organisations (POs) is an economic necessity in order to strengthen the position of producers in the market.

Accordingly, in its 2007 reform of the common organisation of the market for fruit and vegetables, the EU made further provision for financial assistance to producers grouping, on a voluntary basis, to form recognised POs under the EU Scheme of Aid for Producer Organisations in the Fruit and Vegetables Sector.

These recognised POs implement approved multi-year operational programmes to improve the quality and efficiency of their operations. The programmes aim to improve the quality and commercial value of their produce by concentrating marketing, reducing production costs and stabilising prices and to promote the use of environmentally aware cultivation practices.

The POs play a vital role in supporting Irish producers of fruit and vegetables. The strengthening of their role is a core part of the EU strategy for improving the competitiveness of the fruit and vegetable sector in the future. My Department continues to encourage growers to become actively involved in Producer Organisations.

My Department has secured nearly €35m in EU Aid for Irish POs for the operational programmes they implemented between 1999 and 2008. Claims in respect of programmes implemented in 2009 are being assessed at present.