Michael McGrath (Cork South Central, Fianna Fail)
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Question 32: To ask the Minister for Agriculture, Food and the Marine the proposals he has to assist the pig production sector in view of the particular difficulties affecting that sector; and if he will make a statement on the matter. [14625/12]

Simon Coveney (Cork South Central, Fine Gael)
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I am aware of the concerns currently being expressed by the pig production sector, particularly in relation to feed costs and the availability of credit. The pig sector remains the third largest individual component of the agrifood sector, with production, prices and exports all growing significantly during 2011.

Notwithstanding this, 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 70% of feed.

Prices of pigmeat and of course feed are ultimately determined by demand and supply considerations. For my part, I will ask my officials to continue to explore with the European Commission all available market supports when circumstances require them, to ameliorate the worst effects of price volatility. Indeed last year's Aid to Private Storage Scheme for pigmeat played a significant role in putting a floor under pigmeat prices at that time. This, together with release of cereal stocks from intervention, improved the situation somewhat at that time.

I have held a number of meetings with representatives from the Irish Banking Federation to discuss the issues of credit and financing difficulties and have asked my officials to arrange a further meeting as soon as possible.

To assist the pig sector with the new loose sow housing welfare requirements, my Department introduced as part of the Targeted Agricultural Modernisation Scheme (TAMS) a measure for Sow Welfare in June 2010. Grant-aid is available at a rate of 40% to eligible producers with a maximum investment ceiling of €300,000, i.e. a maximum grant of €120,000. A total of €13 million has been set aside under this scheme. It follows two earlier schemes in 2005 and 2007 which made payments of €6.2 million to 63 applicants.

In addition my Department supports the work of a number of agencies who also have a role in developing the pigmeat sector; Bord Bia through its Pig Quality Assurance Scheme (PQAS) and Teagasc which has an advisory and research role and assisted with the " Development Strategy for the Irish Pig Industry", prepared in 2008.

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.