Michael Healy-Rae (Kerry South, Independent)
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Question 164: To ask the Minister for Agriculture, Food and the Marine his views on whether there is a danger that the pig market could be on course for the same fate as the egg market, which was severely disrupted due to the animal welfare changes introduced in 2012, and which followed on with massive price increases; and if he will make a statement on the matter. [24773/12]

Michael Healy-Rae (Kerry South, Independent)
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Question 166: To ask the Minister for Agriculture, Food and the Marine his plans to support pig farmers to ensure their future viability in view of tougher animal welfare regulations from January 2013; and if he will make a statement on the matter. [24778/12]

Simon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 164 and 166 together.

The pig sector remains the third largest individual component of the agri-food sector, with production, prices and exports all growing significantly during 2011. The industry faces a number of challenges in the short and medium term and my Department will continue to assist the sector to resolve these issues.

New EU Animal Welfare rules set down new standards in relation to the housing of sows and these are due to come into force on 1 January 2013. A significant number of producers have undertaken the necessary work required in order to upgrade their facilities in order to comply with the new rules. Teagasc have estimated that approximately 36% of pig units, housing some 44% of the sow population are presently compliant with the provisions.

My Department is aware of the scale of the challenge facing pig farmers in respect of the new requirements. To this end, the Department introduced a Targeted Agricultural Modernisation Scheme (TAMS) 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.

At present, more than 50 applications for grants worth approximately €4 million have been received under the current scheme. Applications must be accompanied by either full planning permission or a declaration of exemption from planning.

The initial deadline for the receipt of applications has been extended from June to 31 October 2012 and DAFM 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.

My Department has met with producer representatives in order to discuss and manage this issue. In addition, it has contacted all local authorities in order to ascertain the number of planning applications made in respect of sow housing. In addition, my Department has written to all pig producers impacted by the new welfare requirements.

The approach being adopted in respect of loose sow housing mirrors that taken with regard to the introduction of the enriched cage egg production system in January of this year.

Through the efforts of industry operators, and with the assistance of my Department, Ireland was compliant with the new enriched cage system by the January deadline and an audit visit by the Food and Veterinary Office in early March confirmed this. A number of EU Member States have not yet complied with the provisions of the Directive and this has led to a decline in production and a short-term increase in the price of eggs in the EU market. In recent weeks European egg prices have stabilised as more producers achieve compliance. Prices in Ireland increased by a much lower level than elsewhere in the EU, due largely to our early compliance.