Éamon Ó Cuív (Galway West, Fianna Fail)
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Question 17: To ask the Minister for Agriculture, Food and the Marine his plans to provide supports to the pig industry; and if he will make a statement on the matter. [23285/12]

Simon Coveney (Cork South Central, Fine Gael)
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The pig sector remains the third largest individual component of the agri-food sector, with production, prices and exports all growing significantly during 2011.

I am aware of the concerns currently being expressed by the sector, particularly with regard to producer returns and the loose sow housing welfare requirements applicable from 1 January 2013.

On the latter point, European legislation requires the change in sow housing. To facilitate compliance, an on-farm investment aid scheme (TAMS) – the Sow Housing Welfare Scheme was introduced under Ireland's Rural Development Programme 2007 – 2013. €13 million has been made available under this scheme. The closing date for applications is being extended to 31 October 2012 in order to alleviate pressures arising from delays in obtaining planning permission. This scheme is in addition to earlier Sow Welfare Schemes which delivered over €6 million to successful applicants.

In addition, my Department has applied to the European Commission for permission to extend the deadline for completion of the work under the current programme to the end of September 2013. This, of course, will not obviate the need for producers to be compliant by 1 January 2013.

A number of applications have already been approved and I strongly encourage pig producers to submit their applications to my Department as soon as possible.

Prices during 2012 have been above the corresponding levels in both of the previous years. At the end of last month, prices were almost 9/c per kilo ahead year on year, which equates to an increase of more than 6%.

While prices, production and export volumes have grown in recent years, 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 in 2011 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.

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 Moorepark pig research facility and 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. I have hosted visits from senior members of the Chinese administration and have just returned from an extremely productive visit to China. I am confident that this engagement will deliver a considerable return for the Irish pig sector.

Furthermore, we have hosted inspection visits from a number of other countries and negotiations are continuing 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.