Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 41: To ask the Minister for Agriculture; Fisheries and Food the steps he is taking to support the sheep industry; and if he will make a statement on the matter. [17600/11]

Simon Coveney (Cork South Central, Fine Gael)
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I am very pleased to see that there is renewed confidence in the sheep sector. Last year saw a welcome increase in the average factory price for heavy lambs, with prices approximately 17% ahead of the 2009 levels. Prices this year, irrespective of the current seasonal drop, are still above those for the same time last year. Another very encouraging sign is the fact that for the first time in over a decade, last year saw a hiatus in the annual decline in sheep numbers. Indeed numbers actually increased by 1.3%. I am very hopeful that 2011 will see another optimistic year for sheep farmers.

The long-term future of the sheep sector will depend on its ability to meet the needs of the market and to do this successfully it must focus on competitiveness, innovation and the demands of the consumer. Food Harvest 2020 Strategy which provides a vision for Irish Agri-Food and Fisheries for the next 10 years, targets a 20% growth in output value for the sector by 2020 and sets out specific recommendations for the sheep industry. It predicts that over the coming years, demand for sheepmeat on the European market will outstrip production levels, which could provide opportunities for exporting countries such as Ireland, which should in turn provide the potential for better returns, provided the market and product diversification we have seen in recent years continues. The producer too should benefit from improved price prospects provided there is an increased focus on production, efficiency and product quality.

The recommendations of Food Harvest 2020 for the sheep industry focus both on farm competitiveness and the processing sector. On the farm side the emphasis is on the use of on-farm labour efficiencies and new technologies, breed improvement and the production of a quality product. On the processing side, the report highlights efficiencies, innovation and improved product range.

Food Harvest 2020 also endorses the recommendations of the 2006 Sheep Industry Development Strategy Group. The responsibility for the implementation of most of the recommendations lies with the industry itself. However a number of its recommendations are the responsibility of my Department and the state agencies under its aegis, and significant progress has been made in implementing them. The initiatives taken include:

The establishment of 'Sheep Ireland' to take over the Department's current breed improvement programme and develop a new one. An interim Sheep Board, comprising representatives of farming organisations and breeders is overseeing this process, with the Irish Cattle Breeders Federation (ICBF) providing the technical and professional service required.

The establishment of the Lamb Quality Assurance Scheme in 2007. This Scheme is operated by Bord Bia and now has 8,500 certified members.

As part of its efforts to promote lamb on the home and export market, Bord Bia, together with its UK and French counterparts, is part of a generic promotion campaign on the valuable French market.

Teagasc has developed a comprehensive plan to restructure its sheep support services, including a Better Farm Programme for sheep, which aims to establish focal points for the on-farm implementation, development and evaluation of technology that is relevant to the sheep sector. This approach provides an opportunity to engage with sheep farmers on the use of the latest management practices and to identify research and development needs.

In recent times the sector has received a number of key supports, including €7 million from the 2009 Single Farm Payment National Reserve under the Uplands Sheep Payment Scheme and €54 million for the three year grassland sheep scheme which commenced in 2010. These measures have provided a much-needed boost to sheep farmers' incomes, which should encourage them to stay in the sector. Bord Bia will also spend up to €1 million this year on the promotion of sheep and lamb at home and abroad and Teagasc has allocated almost €1.5 million for sheep research for 2011.

All of these initiatives and supports have benefited the sheep industry. I strongly believe that the Food Harvest 2020 targets for the sector can be met, provided its recommendations are followed. I remain committed to supporting this valuable industry and will continue to monitor its progress closely.