Michael Healy-Rae (Kerry South, Independent)
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Question 509: To ask the Minister for Agriculture, Food and the Marine his plans to ensure the survival here of the pig industry; and if he will make a statement on the matter. [31527/11]

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. Prices during 2011 have remained higher than in both of the previous years and currently stand at €145.94/100 kg, some 9.2% ahead annually, while production has increased by over 8%.

Exports for the first six months of 2011 reached almost 84,000 tonnes, an increase of 23% compared to the same period in 2010. The value of this trade, at some €196 million is 18% ahead year on year. All markets have registered an increase with trade outside of the EU more than doubling.

While there has been a significant increase in prices and export volumes in 2011, high feed costs, most notably cereals and compound feed remain an issue. Pig producers are especially affected by the increase in cereal prices since June 2009, given that cereals account for 75% of feed.

Prices of pigmeat and of course feed are ultimately determined by demand and supply considerations. For my part, I will continue to press the European Commission to make use of all the available market supports when circumstances require it, to ameliorate the worst effects of price volatility. Indeed the Aids to Private Storage Scheme introduced for pigmeat earlier this year played a significant role in putting a floor under pigmeat prices at that time.

From a National perspective, 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. The Report targets a 50% increase in the value of output by 2020. This is a target set by the industry for itself. I am personally chairing a High Level Group to ensure that the steps necessary to facilitate the development of the sector are taken. My Department and its agencies will, along with industry, play a central role in this regard.

For example Teagasc, through its Moorpark pig research facility, the provision of FETAC courses in pig production and benchmarking pig herd performance, plays a critically important role in improving productive capacity at farm level.

In so far as international trade in Irish pigmeat is concerned, I have been extremely active in developing relationships in new and expanding markets in order to build the kind of confidence in Irish production and control systems that provide a platform for long term trading relationships in the future. As part of that effort, I hosted a visit from the Chinese Vice-Minister for Agriculture earlier this year, and signed a mutual co-operation agreement in the agri-food sector. In addition, my Department has this year hosted inspection visits from Australia, the Philippines, South Korea and China, with a view to opening new markets and expanding the presence of Irish pigmeat in existing markets. And of course Bord Bia continues, through its marketing and promotional activities, and through the pigmeat quality assurance scheme, to consolidate the position of Irish pigmeat on the domestic market and to expand its presence on EU and third country markets.

I can assure the Deputy that my Department and its agencies will continue to work closely with the industry to ensure that it can continue to develop and grow in accordance with the targets in the Food Harvest 2020 Report.