Andrew Doyle (Wicklow, Fine Gael)
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Question 97: To ask the Minister for Agriculture, Fisheries and Food the action he is taking to address the vulnerability of the Irish growers of fresh fruit and vegetables to monopoly control of the market of fresh produce by a dominant supermarket who is importing large amounts of fresh produce from the North of Ireland; his views regarding the future of the Irish growers sector; and if he will make a statement on the matter. [4023/11]

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.

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 and was one of the main recommendations for the horticultural industry in the recently published Harvest 2020 Report. My Department continues to encourage growers to become actively involved in Producer Organisations. Payments are made annually in arrears. Payments of €5.785m issued last year in respect of 2009 operational programmes implemented by Irish POs.

Through the Scheme of Investment Aid for the Development of the Commercial Horticulture Sector, my Department provides grant aid for horticultural growers who are making capital investments in specialist plant and equipment. The main objectives of the scheme are to improve the quality of products, facilitate environmentally friendly practices and promote diversification of on-farm activities in response to market demand. This is a competitive grant aid scheme so funding is only provided for the very best projects which will achieve scheme objectives. Apart from improving the quality of products, investments under the scheme have also significantly extended the growing season for Irish produce. For example, Irish strawberries are now available right into November. The closing date for the latest round of the Scheme is Friday 18th February 2011 and €4 million has been allocated.

Because of wider concerns regarding the relationship between supermarkets and suppliers, the former Minister for Enterprise Trade and Employment appointed Mr. John Travers to facilitate discussions with stakeholders in relation to the drawing up of a Voluntary Code for the Grocery Goods Sector. Mr. Travers is continuing to explore with relevant stakeholders the possibilities in relation to the development of a Voluntary Code. It is expected that Mr. Travers will report on his efforts to facilitate agreement on the terms of a Voluntary Code in the coming weeks.

In relation to the importation of fresh produce from Northern Ireland, this is a private commercial matter for the company involved and one in which I have no role, provided that the produce in question complies with the EU marketing standards in relation to quality and labelling. My Department conducts inspections at import, wholesale and retail level to ensure compliance with these standards.

In terms of fresh fruit and vegetables, Irish self sufficiency levels vary greatly depending on the product in question. For example Ireland is well over 1000% self-sufficient in mushrooms but many fruit types can't be grown in Ireland due to our climate and hence we are totally reliant on imports for these products. Overall Ireland is circa 85% self sufficient in vegetables (including potatoes) but the corresponding figure for fruit is much lower.