Brendan Smith (Cavan-Monaghan, Fianna Fail)
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To ask the Minister for Agriculture, Food and the Marine the proposals if any he has to assist the pig sector through the series of difficulties at present; and if he will make a statement on the matter. [40771/12]

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. Prices have continued to increase during 2012 and are currently at record levels, some 12.53% ahead year on year, or 18c per kilo higher.

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. Following discussions with producers and the evidence of the initial stages of the scheme, my Department modified and improved some elements of the scheme. Grant-aid is now available at a rate of 40% to eligible producers with a maximum investment ceiling of €500,000 for the first sow house, with further amounts of €300,000 for each of the next three houses. The closing date for applications has 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. A number of applications have already been approved and I strongly encourage pig producers who have not yet done so to submit their applications to my Department as soon as possible.

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. 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. 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. In addition 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.

Pigmeat remains the most consumed meat internationally and indeed in 2011, exports of Irish pigmeat to non-EU markets increased by 25% to 43,000 tonnes. International markets continue to present considerable prospects for Irish pigmeat and I am confident that we are positioning ourselves to benefit from these opportunities. 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.