Mick Wallace (Wexford, Independent)
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Question 35: To ask the Minister for Agriculture, Food and the Marine if he agrees that generally speaking agriculture is doing well at the moment but not all farmers are finding it so easy, and high fuel costs are certainly a major factor in the difficulties they are facing; and if he will make a statement on the matter. [14590/12]

Simon Coveney (Cork South Central, Fine Gael)
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The agrifood sector has performed very well in the last two years. Agrifood exports have increased by 25% in that time and now stand at almost €9bn. World food prices, including dairy and meat prices, have been high in recent years, and Irish farmers have benefitted from this.

But of course there are also challenges. At farm level, volatility is always a risk factor. Farm incomes are currently very good, but in 2009 they were very poor. Farmers are also much more exposed now to global food prices that, while currently very high, could easily drop substantially and damage the sector. Input costs have increased substantially in recent years, often more than output prices, so farmer margins have been squeezed. This should be obvious if you consider the huge increases in commodity prices and fuel costs, but other inputs have also increased, most especially fertiliser costs. The pig sector has had particular problems in this regard.

The high cost of fuel is a problem for several sectors. I am pleased that the Minister for Finance provided for an additional relief for farmers in budget 2012 in relation to their use of marked gas oil.