Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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Question 368: To ask the Minister for Agriculture, Food and the Marine his views on the prospects for the sheep industry in 2012; and if he will make a statement on the matter. [39523/11]

Simon Coveney (Cork South Central, Fine Gael)
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The Irish sheep sector continues to show positive signs of renewal. Last year saw a halt in the decline of sheep numbers. The results of the Crops and Livestock Survey for June 2011 (provisional estimates) confirm that, after successive years of decline in our national flock, the trend has been reversed with our total sheep numbers increasing by 3.5% on the previous year to 4.8 million. Of significance was the 4% rise in the number of younger ewes being used for breeding, which reflects a sense of confidence amongst farmers in terms of rebuilding breeding stock numbers which will ultimately lead to an increase in through-put. Whilst it is still early to provide an accurate estimate for the 2012 lamb crop, it is estimated that it will be up in the order of 1-2%. The Grassland Sheep Scheme is proving to be a valuable support mechanism in terms of improving income and confidence in the Sector.

Added to the rise in sheep numbers, average prices to date for the sheepmeat sector are also up by 9% on last year and the outlook for the sector in 2012 is both upbeat and positive. Against this backdrop of renewed confidence at producer level the market outlook remains promising for the Irish sheep sector. Bord Bia anticipates that prices will continue to hold firm in 2012 given the reduced availability of New Zealand lamb entering the EU market. Traditionally, New Zealand has played an influential role in determining sheep meat prices in Europe. However on account of a fall in their domestic production, coupled with a 40% increase in average export prices, New Zealand lamb prices are almost at an equivalent level to Irish sheep meat prices.

2012 looks set to remain strong, however with ongoing tight supplies, much will depend on demand levels in key markets such as France and UK and on the industry's ability to meet the needs of the market.