Brendan Griffin (Kerry South, Fine Gael)
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Question 252: To ask the Minister for Agriculture, Fisheries and Food if he will take any measures to support the pig industry at present, which is in a crisis due to a severe increase in the cost of feed; and if he will make a statement on the matter. [5186/11]

Simon Coveney (Cork South Central, Fine Gael)
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The pig industry is a valuable component of the overall agri-food sector, and has a farm gate value in excess of €300 million. The sector supports approximately 7,000 jobs including production, slaughter, processing, feed manufacture and services and these are dispersed around the country.

Following a difficult year in 2009 prices began to recover early last year. This continued in the second quarter of the year to the extent that year on year prices exceeded 2009 levels in early July 2010. This recovery continued and, while the usual seasonal decline following the end of the barbecue season was again experienced, it was not to the same extent as in previous years. As a result, annual 2010 prices remained above 2009 levels and in the week ending 13th March, 2011 are still over 10% ahead of the same week last year. In general, Irish price movements over recent years have mirrored those of the EU as a whole.

Notwithstanding that, I am aware of the acute difficulties currently being experienced by the pig sector in Ireland and elsewhere.

The biggest issue for producers at the moment remains feed costs, most notably cereals and compound feed and this is an EU and indeed a global issue.

Difficulties in maintaining credit facilities with suppliers and banks are exacerbating this situation. My Department met with the Irish Banking Federation in January and impressed upon them the necessity of improving and maintaining the credit flow to pig farmers.

There have also been a number of initiatives taken at EU level, following calls from Ireland and other Member States for support for the sector. The Aids to Private Storage scheme introduced in January 2011 has helped to underpin an upward trend in price and the Irish producer price is approximately €135/100kgs at present. This scheme, having taken 142,000 tonnes of pigmeat off the market, was suspended with effect from 22 February.

Furthermore, at February's meeting of the Management Committee for the Common Organisation of the Agricultural Markets (Animal Products Sector) Member States agreed to temporarily suspend import duties on certain cereals for the 2010/2011 marketing year. This decision, and the decision to release of significant volumes of cereals from EU intervention stocks, were intended to alleviate upward pressure on cereal prices.

In addition my officials are contributing to the work of the EU Commission's Enlarged Advisory Group on Pigmeat, which will have its final meeting in April with a discussion on market measures, before reaching conclusions. Ireland was among the Member States that called for the establishment of this Group.

I am convinced that the pigmeat sector in Ireland has a very positive future. Increasing global population and the emergence of new markets in the Far East and elsewhere will result in a steady increase in the demand for pigmeat worldwide in the period to 2020. The key challenge for the sector in Ireland is to position itself to take advantage of this opportunity.

For my part, I can assure the Deputy that at EU level I will continue to highlight the difficulties being experienced in the pig sector at present, and to seek the deployment of appropriate market supports as required, and that domestically, it is my firm intention to ensure that all of the stakeholders in this very important sector act in a collaborative way to implement the recommendations of the Food Harvest 2020 Report in order to secure the long term viability of the sector.