Written answers

Wednesday, 14 January 2015

Department of Agriculture, Food and the Marine

Pigmeat Sector

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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335. To ask the Minister for Agriculture, Food and the Marine his plans to address a matter (details supplied) regarding pig meat producers here; and if he will make a statement on the matter. [1573/15]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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344. To ask the Minister for Agriculture, Food and the Marine the proposals he has put to the European Commission regarding the urgent need to provide assistance for the pigmeat sector due to the serious drop in prices; and if he will make a statement on the matter. [1776/15]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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345. To ask the Minister for Agriculture, Food and the Marine the market support measures that he has requested the European Commission to introduce to support the pigmeat sector in view of current difficulties; and if he will make a statement on the matter. [1777/15]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 335, 344 and 345 together.

The development of the pigmeat sector is a priority for me given the crucial role which the industry plays in supporting approximately 7,000 jobs including production, slaughter, processing, feed manufacture and services. In 2014 export volumes increased by approximately 7%, with growth to the UK, Continental Europe and International markets. Values increased by some 3% and are in the range of €570 million, continuing the growth seen in recent years. Pigmeat prices tend to be cyclical in nature with periods of lower prices and production followed by recovery and this has remained the case for many years.

My Department carefully monitors developments in the pig sector, both domestically and internationally. I also met with members of the IFA National Pigs and Pigmeat Committee recently to hear their views on developments.

I am conscious of the fact that prices have come under pressure in recent months and the difficulties that this is causing for producers. Having said that, it must be noted that Irish prices remain above the EU average at present. However I would also add that like any other EU Minister I do not have a role in the setting of prices. This is a function of the market.

In relation to the Russian ban on EU pigmeat exports, I am fully aware of the concerns Irish pig farmers have as a result of the closure of this market. At EU level the Commission has referred this matter to the WTO for resolution. At recent Council meetings I have joined with other Ministers in requesting the European Commission to continue to monitor the developments on markets and called for the introduction of private storage aid. This request did not, however, have the support of a qualified majority of Member States. Nevertheless, the Commission acknowledged the significant decline in pig prices and will keep the situation under review. I am committed, however, to continuing to work with liked minded Ministers.

Support is provided by my Department for the pig sector in a number of ways. Firstly I have included provision in 2015 and throughout the whole RDP for an on-farm capital investments scheme, TAMS II, with an overall budget of €395 million across all sectors, with €37 million allocated for 2015. Amongst the areas identified for initial funding are investments on pig farms for energy, water meters and medicine dispensers. Other elements of the RDP, such as targeted on farm animal health and welfare scheme will also be of benefit to the pig sector.

Other supports for the sector come through Teagasc which, through its Moorepark pig research facility and courses in pig production, plays an important role in improving production at farm level. Through its Joint Research Advisory Programme, Teagasc will support Irish pig producers by providing advice, research and education across a range of issues of importance to the sector. The programme has enabled Teagasc to employ four additional advisors and researchers to support producers and the sector through advice, research and education across a range of issues of importance to the sector. The high level objective of the programme is to enhance the sustainability of Irish pig meat production, including improvements in economic, social and environmental standards. This will result in improvements in the production and marketability of Irish pig meat.

I am also conscious of the need to promote the consumption of Irish pig meat in domestic and overseas markets. Bord Bia provides assistance to the pig meat sector through its marketing and promotional activities, and the pig meat quality assurance scheme helps to consolidate the position of Irish pig meat on the domestic market and helps expand its presence on EU and third country markets. Indeed from now until 1 February Bord Bia are running a detailed targeted Pork promotional campaign to assist the industry. Further campaigns are planned over the coming months to promote ham and bacon.

For my part I have undertaken to ensure that as many alternative markets as possible are open to Irish Pigmeat processors. Indeed it is a key element of my strategy to seek new market opportunities. In that regard I was pleased to announce in recent months the opening of the markets in Vietnam and the Philippines for Irish pigmeat which will serve as valuable alternative markets to Russia for Irish pigmeat exports.

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