Éamon Ó Cuív (Galway West, Fianna Fail)
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To ask the Minister for Agriculture, Food and the Marine the steps he is taking to ensure that there is a trade for light lambs in the factories, in view of the decision of at least one factory, not to kill any lambs under 15 kilos carcass weight, where in other years factories were accepting lambs down to nine kilos carcass weight; and if he will make a statement on the matter. [42214/12]

Simon Coveney (Cork South Central, Fine Gael)
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The market performance of the sheep sector, in common with other agricultural sectors, is a function of supply and demand. Market conditions for Irish sheepmeat are generally proving more difficult in 2012 than in the previous two years. Factory prices for heavy lambs for the year 2012 to date are approximately 2% below 2011 levels for the corresponding period. This reflects the competitive pressures in the market.

I am aware that market conditions for light lamb are particularly difficult at the moment. There is a glut in the market due to weakened demand for Irish light lamb in the traditional markets in Spain and Italy, caused by the economic downturn in these regions. I understand that Spain is itself exporting higher quantities of light lamb to France at present and this trade is running approximately 30% above last year’s level. Furthermore, these light lamb have traditionally being sold to the store trade, but this year trade has been poor as store lamb producers are reluctant to buy in large quantities on account of high meal costs.

There has been significant public investment in the sheep sector in recent years. One of the main supports has been €54 million for the three-year Grassland Sheep Scheme which commenced in 2010. The sheep fencing/mobile handling equipment Scheme, one of five Targeted Agricultural Modernisations Schemes (TAMS) is also enabling many farmers in the sheep sector to complete the necessary investment works in order to maintain competitiveness and introduce increased efficiencies on the farm and so secure the future of their enterprises. Teagasc has also allocated almost €1.5 million for sheep research for 2012. Bord Bia will spend over €1.1 million this year on a promotional strategy for the Irish sheep sector which addresses the issue of safeguarding the future of the sector in the following ways: by encouraging Irish consumers to buy more Quality Assured lamb; by collaborating with its French and English counterparts in a campaign to reverse the decline in consumption of lamb on the French market, which accounts for over 50% of our exports; by working with individual exporter to increase the amount of exports to higher value markets such as Germany and Scandinavia and thereby reduce Ireland’s dependency on the French market.

On a positive note, sheepmeat exports to international markets almost doubled to 600 tonnes during the course of 2011. This generates a great confidence boost for Irish exporters. While almost 99% of our lamb exports are to the EU, it is always beneficial to have a wide range of outlets available and to this end my Department, together with Bord Bia and the Department of Foreign Affairs and Trade continues to work to secure access to more third country outlets for Irish lamb. I announced the opening of the Singaporean and South African markets to Irish lamb over the summer. There is strong demand for all meats globally at present and my Department and I remain committed in our efforts to ensure that the Irish sheep sector is able to take full advantage of all of the opportunities that will arise as a result of this demand.