Written answers

Tuesday, 11 February 2014

Department of Agriculture, Food and the Marine

Agrifood Sector Issues

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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117. To ask the Minister for Agriculture, Food and the Marine having regard to the recently compiled document entitled Farm Income Review 2013, submitted by the Irish Farmers Association, the extent to which he expects to use the document as a template for further development in the agrifood sector, with particular reference to building on the success of 2013 and keeping in mind the losses experienced by the farming community in 2012 and other years; if he can visualise a means whereby producers in this country are remunerated in line with UK and other European producers; if he has identified a means of ensuring that any benefits accruing are passed on to producers as opposed to multinational supermarket chains; and if he will make a statement on the matter. [6284/14]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I have noted the contents of the IFA's Farm Income Review 2013, much of which is based on data from my Department, Teagasc and the CSO. The outlook for the development of the agri-food sector is positive, and I am confident that the industry developed targets set out in Food Harvest 2020 are achievable and can be met. The third Milestones report of the Food Harvest High Level Implementation Committee (HLIC), published in September 2013, showed that the sector had already achieved growth as follows by the end of 2012: 25% in primary production; 20% in value added; and 13% in exports, compared to the Food Harvest baseline period. The announcement from Bord Bia that agri-food exports reached almost €10 billion in 2013 underlines the contribution of the sector to the national economy.

Another very positive development was the successful conclusion of CAP reform negotiations during the Irish Presidency of the EU last June. Last month I announced that, in addition to the €8.5 billion in EU funding that will be paid in direct payments to farmers in the period up to 2020, €1.9 billion in national funding will be added to the €2.2 billion in EU funding already secured for expenditure on rural development. This brings the total funding for the sector over the period to more than €12.5 billion.

In view of these positive developments, the average family farm income of around €25,000 according to Teagasc's National Farm Survey in 2012 does appear low. However, it should be borne in mind that this average includes many farms defined as "part-time" based on their labour input requirement. Average farm income for "full-time" farms was over €45,000 in 2012. On half of farms represented by the National Farm Survey, either the farmer or spouse had an off-farm job. Overall it is estimated that on 78% of farms, either the farmer and/or spouse had another source of off-farm income, be it from employment, pensions or social assistance.

With regard to the groceries sector, the Government considers that it is important to strike a fair balance between the various players in the grocery goods sector. I understand from the Minister for Jobs, Enterprise and Innovation that work is at an advanced stage on the drafting of the Consumer Protection and Competition Bill.

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