Written answers

Wednesday, 1 December 2010

Department of Agriculture and Food

Food Industry

7:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 178: To ask the Minister for Agriculture, Fisheries and Food the steps he has taken at national or EU level to develop the food producing sector as a means of economic recovery; and if he will make a statement on the matter. [45588/10]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 185: To ask the Minister for Agriculture, Fisheries and Food if he plans to launch any initiatives to investigate the agriculture and food sectors with a view to playing a major role in economic recovery; and if he will make a statement on the matter. [45595/10]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 189: To ask the Minister for Agriculture, Fisheries and Food his plans to increase employment in the agri-food sectors with a view to assisting economic recovery; and if he will make a statement on the matter. [45599/10]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 190: To ask the Minister for Agriculture, Fisheries and Food his plans for an economic expansion plan for agriculture and fisheries; and if he will make a statement on the matter. [45600/10]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I propose to take Questions Nos. 178, 185, 189 and 190 together.

One of the major steps which I have taken to progress the food producing sector has been the development this year of Food Harvest 2020. This sets out the strategic vision for the sector, the actions to be taken, and the targets which the agrifood and fishing sector should achieve to assist the national export led recovery. Food Harvest 2020 is the Government's comprehensive roadmap for the sector. It was developed by an industry–led committee and its content reflects their wide ranging expertise underpinned by comprehensive analysis from my Department, relevant State Bodies, the input of the Harvard Business School and senior farming and food industry figures.

The key focus of Food Harvest 2020 is to show how the industry can capitalise on the expanding market opportunities. These opportunities arise from the actual and projected increase in food demand due to rising world population and increasing wealth, matched with our ability to produce high quality products using environmentally sustainable production methods.

A global increase in demand for food will inevitably follow the current surge in world population, which is forecast to reach 8 billion by 2025. Growth in demand for dairy produce is likely to be a particularly strong element of this growth due to rising global incomes. This is very opportune and presents a very real opportunity for our dairy sector. The ending of EU milk quotas in 2015, presents the sector with a once in a lifetime opportunity to significantly grow our milk output, to achieve a step-change in the scale of our dairy sector and capitalise on the significant cost advantage we have in our environmentally sustainable grass-based production system.

Food Harvest 2020 sets out a number of growth targets to be attained, the principal ones include the following:

Increasing the value of primary output of the agriculture, fisheries and forestry sector by €1.5 billion. This represents a 33% increase compared to the 2007-2009 average.

Improving the value added in the sector by €3 billion. This is a 40% increase compared to 2008.

Achieving an export target of €12 billion for the sector which is a 42% increase compared to the 2007-2009 average,

Increasing milk production by 50%;

Adding 20% to the value of the beef sector.

In addition, Food Harvest 2020 points out the need to improve cost competitiveness by 20%, relative to our competitors and the necessity to double the industry spend on R&D.

This detailed strategy provides over 200 recommendations and suggestions on which Government, State Bodies and private enterprise must actively collaborate and implement in order to achieve the above targets. My answer to the combined Parliamentary Question 45039/10, for answer today, gives details on the progress which I have already made on its implementation.

The increased output identified in Food Harvest 2020 has the potential to increase net employment by some 3,500 in the food sector with a further 3,000 jobs in the seafood sector. In the latter industry, increased employment is expected from aquaculture production and value- added branded production assisted by the Seafood Development Centre. In addition, increased self employment is expected from the small food companies, artisan and food tourism businesses. Currently, these micro food businesses are too small to feature in CSO employment surveys but these indigenous and mostly rural based businesses are a current and future potential source of expanding rural employment and innovation.

The Government has consistently supported the growth and development of the agrifood and fisheries sector and a continuation of the proactive implementation of the recommendations of Food Harvest 2020 will ensure that this indigenous sector makes a significant contribution to the national export led economic recovery.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 179: To ask the Minister for Agriculture, Fisheries and Food his plans to expand the dairy sector; and if he will make a statement on the matter. [45589/10]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The Food Harvest 2020 report, which I launched during the summer with the Taoiseach, outlines the positive prospects for the dairy sector over the medium- to long-term, and sets an ambitious target of a 50 per cent increase in milk production by 2020. It outlines a number of recommendations designed to support the realisation of this potential growth, ranging from milk processing to on-farm competitiveness, technology transfer, and R&D and marketing. I have established, and am chairing, a very focused High Level Implementation Group which will ensure effective, joined-up action, and will act as a clearing house for the range of issues that are likely to arise in relation to the development of the agriculture sector as a whole.

I have also recently established the Dairy Expansion Activation Group, comprised of dairy farmers, processors and Teagasc, which I have tasked with addressing the specific actions required to achieve the dairy expansion target. I asked for an initial 'road map' to be submitted to the High Level Implementation Group by the end of November, and I expect this to be presented formally to the High Level Group shortly.

Of course this focus on how to deal with future challenges is a continuation of the approach that I have taken to the implementation of milk policy in recent years. Having secured as much additional quota as possible for Irish dairy farmers in the run up to quota abolition through the November 2008 Health Check agreement, I have continued to strive to get as much of that quota as possible into the hands of active producers while at the same time encouraging the adoption of best practice on dairy farms so that they can continue to be competitive through improved efficiency.

Innovative measures such as simplified and flexible milk quota regulations, new rules for participation in Milk Production Partnerships, the Milk Quota Trading Scheme, new measures to encourage new entrants, and the Dairy Efficiency Programme have helped the sector to progress significantly in recent years, as has the ongoing investment at processing level supported by the Dairy Investment Fund. I intend to ensure that the implementation of Food Harvest 2020 builds on this momentum, and I am confident that it will help to ensure that the dairy sector achieves its full potential.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 180: To ask the Minister for Agriculture, Fisheries and Food if his attention has been drawn to any particular trend that the scale of food products on sale here reflects a displacement of Irish products from the shelves; and if he will make a statement on the matter. [45590/10]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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As products, including food products, which are traded within the Community are not generally required to indicate origin on their packaging, statistical evidence of any particular trend as suggested by the Deputy is not available on an official basis. Food products trade freely within the Single Market and over 80% of Irish agricultural production is exported to EU and world destinations. Exports in 2010 are running more than 5% ahead of the trend in 2009, when they were worth € 7 billion, which is a positive contribution towards achieving the aims of Food Harvest 2020, which sets out a vision and actions to increase exports to €12 billion by 2020.

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