Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Agriculture, Food and the Marine the extent to which he continues to review the future prospects for the pig meat industry with particular reference to meeting the challenges of rising costs and increased competition; and if he will make a statement on the matter. [7371/13]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The pig sector accounts for approximately 6% of the overall agri-food industry and is the third largest individual component of the agri-food sector. During 2012 output, prices and export values continued the growth seen in recent years, growing by 2%, 10% and 16% respectively.

Currently pig prices are over 15% ahead of the same week last year. This equates to almost 23c/kg. When compared to the same week in 2010, prices have risen by over 46/c per kilo, or more than 38%.

The ‘Food Harvest 2020 Report ’, published in July 2010, sets out the vision for the future of the food industry including the pig sector and targets a 50% increase in the value of output by 2020. My Department carefully monitors developments in the pig sector, both domestically and internationally. Given that cereals account for up to 75% of pig feed, the impact of significant increases in cereal prices in recent years on the pig sector has been considerable. While there has been some easing of soya prices in recent months thus ameliorating some of the consequences, they continue to remain significantly above historic averages. The weather affected harvests with drought in the USA and the Black Sea region leading to lower output and consequent upward pressure on prices.

Following rebuilding and recovery efforts in recent years the future for the Irish pig sector remains challenging. Notwithstanding recent cereal price reductions, input prices are forecast to remain above long-term averages for the foreseeable future. In addition, difficulties in the non-feed elements of production such as credit availability, energy costs and compliance with the EU Loose Sow Housing Directive which came into force in January 2013 together with the decline in the size of the breeding herd pose significant challenges to producers. EU output is forecast to decline by 2-3% in 2013 which conversely will offer increased opportunities to Irish producers. However, the ongoing issues referred to above together with the near 7% decline in the Irish breeding herd in 2012, may limit Irish producers’ scope to avail of these openings.

In relation to the Loose Sow Housing Directive, an on-farm investment aid scheme (TAMS) – the Sow Housing Welfare Scheme was introduced under Ireland’s Rural Development Programme 2007 – 2013, to facilitate producer compliance with the requirements. The scheme has been enhanced and extended on a number of occasions. While the majority of producers have worked extremely hard to achieve compliance, my Department became aware that a small number of producers had experienced difficulties with planning permission. With this in mind, I recently announced a further extension in the deadline for grant applications until 2 April 2013.

I have provided a total of €16 million for this scheme. I should add that this funding is in addition to earlier Sow Welfare Schemes which delivered over €6 million to successful applicants.

With regard to financial support available to the pig industry, Enterprise Ireland operates various programmes relating to company development. Included among these are Research and Development and Innovation Funding. Through a mix of funding, advice and expertise, Enterprise Ireland works with companies planning or engaging in R&D. Assistance for product development is also available through the Teagasc National Food Centre in Ashtown, Dublin 15. A number of businesses within the pig sector have availed of these programmes in recent years.

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. Teagasc have also circulated pig producers with a number of the options available to them to reduce feed costs and improve feed efficiency.

In addition, Teagasc continues on an ongoing basis to develop enhanced systems of research, technical assistance and knowledge transfer in order to assist the pig sector.

In so far as international trade in Irish pigmeat is concerned, my Department has 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.

And of course Bord Bia continues, through its promotional activities, and through the pigmeat quality assurance scheme, to help consolidate the position of Irish pigmeat on the domestic market and to expand its presence on EU and international markets. This is proving particularly successful in international markets, primarily Russia and China where the value of Irish pigmeat exports grew to over €110 million in 2012.

It is important to remember that pigmeat remains the most consumed meat worldwide and this will continue to present opportunities for Irish producers, given our self-sufficiency. In addition, the measures outlined above, together with the progress made in the last few years in establishing and consolidating a presence in important international markets will better position Irish producers to take advantage of growing demand.