John Paul Phelan (Carlow-Kilkenny, Fine Gael)
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Question 42: To ask the Minister for Agriculture, Fisheries and Food his views on the role that agriculture and the agri-food sector can play in economic recovery here, with particular regard to the Food Harvest 2020 report produced by him; and if he will make a statement on the matter. [12599/11]

Simon Coveney (Cork South Central, Fine Gael)
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Agriculture and the agri-food processing sector is Ireland's most important indigenous industry. It has a key role to play in terms of direct economic activity and is one of the growth sectors designated to advance our national export led economic recovery.

In my view, this sector provides a strong base for national economic development. Currently, the overall industry has an annual output of around €24 billion and most importantly is strongly embedded in the Irish economy. It remains Ireland's most important manufacturing sector, accounting for over 6% of GDP. A total of over 135,000 are currently employed in the production of agri-food and fisheries products, which is approximately 7.4% of national employment. This sector is the primary outlet for the produce and output of the country's 128,000 family farms and includes approximately 600 food and drinks firms. Its wide geographic spread throughout the country plays a major part in sustaining rural and coastal communities.

A further important facet of the sector is the extent to which it is embedded in the economy and contributes to national prosperity. Due to its low import content and low profit repatriation levels, the net foreign earnings of this sector amount to 32% of the total net foreign earnings from primary and manufacturing industries. According to Forfas, the food industry spends over €9.5 billion on Irish goods and services, representing 71% of total expenditure in 2009, far higher than the 44% for all manufacturing industry.

This industry has a huge export orientation with exports currently over €7.8 billion. Over the past decade, the Irish agri-food, forestry and fisheries sector has competed successfully on the world stage and has demonstrated its capacity to perform as a major player in the global food and drink market. Currently, Irish food and drink produce is exported to more than 160 countries. This multi-million export industry has also undergone continuous development as well as demonstrating considerable flexibility in responding to emerging market opportunities. Over the period it has moved from a largely commodity based sector, underpinned by market support mechanisms, to a far greater reliance on consumer-focused, value-added product.

In summary, in my view the three key attributes of the sector are

It's embedded contribution to employment and exports,

It's ability to garner foreign export earnings; and

The potential of the sector to generate export led growth.

Together these provide the solid foundation for positioning this progressive indigenous industry as one of the central components of the country's export driven recovery.

In the light of this potential, the implementation of Food Harvest 2020 is a key commitment of the Programme for Government. I am personally focused on progressing the wide range of state actions needed to drive implementation of this strategic document, which was drawn up by key figures in the sector. It includes ambitious targets to be achieved by 2020 including:

Increase milk production by 50%.

Improve the value-added in the sector by €3 billion.

Achieve an exports target of €12 billion, a 42% increase

Increase the value of primary output of the agriculture, fisheries and forestry sector by €1.5 billion.

Actions have already been taken to progress implementation. A High Level Implementation Committee (HLIC), involving the CEOs of the relevant state agencies, has been established specifically to

ensure a fully joined up effort on the part of State bodies in the implementation of FH2020;

to encourage proactive engagement by the agri-food industry and private sector with the implementation process;

and to act as a "clearing house" for issues relating to the development of the sector.

I chair this Committee and I look forward to chairing its next meeting which is scheduled for 22 June next.

I will continue to work to make substantial progress towards the achievement of the agri-food industry targets, and, this summer, I will produce a progress report which will outline the actions taken on each of the 215 recommendations in Food Harvest 2020 and identify key features of the road ahead.

Nicky McFadden (Longford-Westmeath, Fine Gael)
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Question 43: To ask the Minister for Agriculture, Fisheries and Food the current level of investment in the research and development agri-food sector; if there is potential to encourage more investment in this area; and if he will make a statement on the matter. [12601/11]

Simon Coveney (Cork South Central, Fine Gael)
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The total level of current investment in agri-food research is significant and comprises a number of sources.

My Department operates 2 competitive funding programmes for agri-food research, namely the Food Institutional Research Measure (FIRM) and the Stimulus Research Programme under the National Development Plan 2007-2013. Awards under the 2 Programmes since 2005 amount to €131m while expenditure in 2011 will amount to about €19.1 m. The FIRM and Stimulus Programmes are open to the public research organisations and higher education institutions via Research Calls announced periodically. The Programmes are directed at building capability, expertise and critical mass through inter-institutional, multi-disciplinary collaboration. They fund research along the continuum from basic through fundamental/applied to the pre-commercial stage. I would hope to be in a position to announce some new awards under FIRM and Stimulus in the near future arising from a Call my Department issued in the Autumn of 2010, which was closely linked to achieving the targets set out in Food Harvest 2020.

A portion of the annual grant-in-aid to Teagasc is allocated to research. In 2010 this amounted to approximately €49 million (including pay). This goes towards supporting research at its various Research Centres and is directed at its 4 programme areas, namely: Animal & Grassland Programme; Food Programme; Crops, Environment & Land use Programme; and Rural Economics & Development Programme.

Investment committed to seafood-related research by the Marine Institute, under the Marine Research Sub-Programme of the NDP, for projects that range in duration from one to seven years, amounts to €12.9m since 2007. Expenditure on these projects in 2011 is estimated at €1.9m.

Enterprise Ireland (EI) administers awards to companies for food related research under the "Fund to Improve Food Industry Competitiveness" on behalf of my Department. The development of R&D initiatives is one of the key aims of this Fund. In 2010, as part of the Fund, EI launched a dedicated food Call under its Innovation Voucher Scheme. The Scheme provides funding worth €5,000 for small Irish food companies where companies can obtain an innovative solution to a technical or business challenge from a Higher Education Institute in Ireland or Northern Ireland. The Innovation Voucher Scheme saw 145 vouchers being approved in 2010 and 3 more Calls are taking place in 2011.

Non-exchequer funding arises mainly under the EU's 7th Framework Programme (FP7) which is the largest public good research programme in the world. FP7 provides an opportunity for Irish research institutions and companies, including SME's, to attract external funding for agri-food research in these challenging budgetary times. It also provides them with an opportunity to benefit from collaborating with other high ranking scientists from across Europe and beyond.

The main element of FP7 of relevance to agri-food research is Theme 2 "Food, Agriculture and Fisheries, and Biotechnology (FAFB)" which has a budget of €1.9b over the 7 year period 2007 – 2013. Ireland had secured €8.5m under this Thematic area up to 2010. Both Teagasc and the Marine Institute have been very successful in attracting funding from the Programme.

Investment in research by the private sector arises mainly in the food area. Most of the investment in food research is carried out by the larger dairy oriented companies, both indigenous and foreign owned multinationals based here such as those involved in the manufacture of infant formula.

Research and development priorities, including those related to agri-food, are set out in the Programme for Government which, in particular, endorses the recommendations in the Food Harvest 2020 Report. In this regard, it is generally acknowledged that research has a major role to play in achieving the planned further expansion and innovation in the dairy and meat sectors and in helping to improve the efficiency and competitiveness of the sector.

Research is also seen as critically important to helping the sector face the challenges that lie ahead such as achieving the emissions targets in the context of climate change and ensuring the general environmental sustainability of the sector.