Pat Deering (Carlow-Kilkenny, Fine Gael)
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Question 121: To ask the Minister for Agriculture, Fisheries and Food his plans for the Irish pig industry. [8889/11]

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. Production, prices and exports grew significantly during 2010 and the impact of this growth was felt at all levels of the production cycle.

However, I am aware of the difficulties currently being experienced by the sector. While returns have improved in recent months and are forecast to improve in the medium term, the biggest issue for producers at the moment remains feed costs, most notably cereals and compound feed. Pig producers are especially affected by the increase in cereal prices since June 2009, given that cereals account for 75% of feed. This is reducing margins to below the long-term average, a situation which may have an impact on production decisions in both the short and medium term. Difficulties in maintaining credit facilities with suppliers and banks are exacerbating this situation.

The 'Food Harvest 2020 Report ', which was published in July 2010, sets out the vision for the future of the food industry including the pig sector. Ambitious targets have been set in relation to sow productivity, the size of the national herd, together with a 50% growth in the value of output by 2020, and I am chairing a High Level Implementation Group to ensure that the recommendations in the report are implemented.