Written answers

Wednesday, 21 March 2012

Department of Agriculture, Marine and Food

Discussion Groups

9:00 pm

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

Question 12: To ask the Minister for Agriculture, Food and the Marine the progress made on discussion groups in the beef and dairy sectors, money spent and budgeted for such groups; and if he will make a statement on the matter. [14630/12]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context

Dairy Efficiency Programme

When it was agreed in 2008, under the CAP Health Check, that unspent Single Payment Scheme (SPS) funds could be made available to support economically vulnerable types of farming, my Department, after discussions with stakeholders, identified the dairy sector as an economically vulnerable sector, given the extreme price volatility it had experienced in the preceding two years, and a suitable sector to avail of the funding. The Department, in consultation with Teagasc, considered that a targeted efficiency programme would best enhance competence, effectiveness and confidence within the industry. It was hoped that such a programme would bring about a change in attitudes and an improvement in knowledge at farm level.

Participation in discussion groups was identified as being the most effective way in which the Programme could facilitate dairy farmers in gaining the knowledge to help them adopt best practice in the running of their enterprises. Dairy discussion groups had been in existence since the 1990s, with the support primarily of Teagasc advisers, and by 2009 the number of dairy farmers involved in about 250 groups around the country had reached about 2,800. The benefits for those involved included the acquisition of up-to-date technical information and knowledge, support with new ideas and problem solving, and a more positive and confident attitude in the running of their businesses. Learning from the experiences of other like-minded individuals was an attractive component for discussion group participants, and increased profitability was also a strong motivating factor. The Department, in considering how to achieve objectives such as better grassland management, improved breeding and a greater focus on financial management, felt that the discussion group structure was therefore the most appropriate vehicle. It was felt that, if dairy farmers could be persuaded to become involved in discussion groups in larger numbers, the very act of participating in a shared learning experience would have positive knock-on effects for themselves and for the dairy sector as a whole.

In December 2009 my Department announced a three-year Dairy Efficiency Programme in which the €18 million of the unused SPS funds were to be spent on encouraging significant efficiency gains on Irish dairy farms, The Programme, now in its final year, has paid out almost €12m to just over 6,000 dairy farmers in respect of Year 1 and Year 2. These discussion groups, in which the dairy farmers have participated in, are facilitated by Teagasc and private facilitators trained to FETAC level. The Groups place particular emphasis on the adoption of best practice in relation to grassland management, breeding, health and safety and financial management. The participants have their progress monitored by their facilitator and they are required to meet certain standards in relation to attendance and project completion in order to qualify for end of year payments

Beef Technology Adoption Programme

Based on the ambitious development targets set out under the Food Harvest 2020 strategy for the beef sector, I recently launched the Beef Technology Adoption Programme (BTAP) with a budget of €5m for 2012. The precise payment rate to each individual applicant will be determined by the overall number participating in the Programme. However, the maximum payment per participant will be €1,000 and the deadline for receipt of applications by the Department was 16 March 2012.

This Programme, is also based on the discussion group format and is intended to incentivise farmers to develop a range of additional skills to increase the productivity and profitability of their beef enterprises. This initiative is aimed at upskilling participants to enable them apply best practice in all the vital areas of a successful beef production business: i.e. financial management, grassland management, animal breeding, herd health and production to meet market specifications.

The gulf that exists between the best beef farmers and less successful performers is primarily attributable to lower output. They both have similar costs but under-performing farms are producing fewer kilos of beef per hectare (ha) compared to the top performers. Both the Teagasc Derrypatrick herd and the BETTER Farm Programme show what can be achieved through increasing the number of animals per hectare. Higher stocking rates achieved through improved grass utilisation is the most important driver in growing output and attaining gross margin returns of around €1,000 per ha.

I think that there will be tremendous opportunities for the development of the beef industry in the coming years but we must address the fundamental issue of inefficiency and poor margins at farm level if the industry is to take full advantage of these opportunities. The payback on the BTAP investment will deliver real gains at individual farm level and upgrade the overall beef production system at national level. I believe that the concept of discussion groups will gain traction as it did among dairy farmers and that the demonstration effect of the Programme will help to change behaviour and mindsets among those engaged in primary production.

I would urge all those who have applied and are eligible to participate in beef discussion groups to fully utilise the benefits of group membership. Similar programmes have demonstrated the value of the shared learning experience fostered by discussion groups in achieving greater on-farm efficiency. Farmers are motivated to re-examine the way they run their businesses and learn from expert advisors and the experience of other progressive farmers. The adoption of best practice in the management of their enterprises will also help beef and dairy producers to better deal with commodity price fluctuations.

Against the background of ambitious targets for the development of the beef and dairy sectors in Food Harvest 2020, and bearing in mind the generally positive medium-term price forecasts in both sectors, the Government's ongoing investment in discussion groups sends the right signals to primary producers and reinforces the strong sense of ambition and optimism currently evident in both sectors.

Comments

No comments

Log in or join to post a public comment.