Tom Hayes (Tipperary South, Fine Gael)
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Question 54: To ask the Minister for Agriculture, Fisheries and Food the steps he is taking to encourage forward selling in the grain market and thereby reduce dependency on prices in the market at harvest time; and if he will make a statement on the matter. [22052/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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It is important that producers and merchants continue to explore ways in which harvest prices can be determined in advance to allow for cost-effective forward planning by all sectors of the industry. Grain prices are strongly influenced by both the world and EU markets and indeed Ireland accounts for around only 1% or so of the EU market.

The maintenance of an efficient and viable crops sector in Ireland is very important to the well being of the agri-food industry. Indigenous production of cereals is of course, an important part of primary agriculture production. In addition to generating an income for our tillage farmers, the cereals sector is a key source of grain for the milling and malting industry and feedingstuffs for the livestock sector. Annual cereals production in Ireland has fluctuated around 2 million tonnes in recent years. It is desirable to try to sustain this level of production in order to avoid over-dependence on imported cereals.

My Department operates a range of services aimed at improving the efficiency, quality and viability of cereal production. These services include seed certification, seed testing, variety testing and publication of recommended lists of varieties. In addition, Teagasc provides research, training and advisory services for cereal producers. The value of all these support services is reflected in the fact that Irish cereal producers have consistently achieved some of the highest yields in the world. In February of this year I launched a major initiative to draw up a long-term strategy for the agri-food, forestry and fisheries sector. The important role of the cereals sector as part of this long-term strategy will be fully examined.