Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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216. To ask the Minister for Agriculture, Food and the Marine the details of the latest efforts by the Government to help the mushroom industry, particularly in counties Cavan and Monaghan. [35310/16]

Michael Creed (Cork North West, Fine Gael)
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I am very aware of the significant challenges that the mushroom sector is experiencing in the aftermath of the UK Referendum decision to exit the EU,  and particularly in light of recent fluctuations in currency. I am focused on working with the industry to meet these difficulties in the months and years ahead. I am monitoring Sterling fluctuations closely and my own Department has established a dedicated unit to consider the full impact of Brexit.

Grower production of this highly perishable product must be well aligned with demand and the mushroom sector, like other food exporting sectors, is highly dependant on the UK market.

I have met and will continue to meet senior executives from the UK retailers to highlight the obstacles that producers are facing.

Bord Bia is working closely with the sector on market intelligence, UK consumer research and quality assurance. They recently held a currency and negotiation workshop specifically targeted at the sector, which I understand was very well received. A Marketing Intensification Programme which aims to provide targeted marketing supports to companies with high dependency on UK markets has been rolled out. Grant supports will be prioritised to assist companies in strengthening their position in that market, and in their efforts to identify new markets.

As announced in Budget 2017, I have secured an additional €700,000 in funding for capital investments in the commercial Horticulture sector which includes the Mushroom sector. This will increase the budget for this scheme to €5million in 2017. Additionally, the Horticulture sector will have access to the €150m low interest cash flow support loan fund announced in the Budget, providing access to highly flexible loans for up to six years, for amounts up to €150,000, at an interest rate of 2.95%.

To ensure on-going support for the sector, my Department extended, under EU sanction, the Scheme of Investment Aid for the Development of the Commercial Horticulture Sector to run until 31 December 2019. In 2014 and 2015 a total of €1,635,190 grant aid was paid to mushroom growers. The grant aid paid supported some €4.1 million in investment by these growers.

Under the 2016 Scheme of Investment Aid for the Development of the Commercial Horticulture Sector, my Department issued approvals in the amount of €1.33 million in aid to growers in the mushroom sector, supporting €3.3 million in proposed investment.

The EU Producer Organisation Scheme is also a vital support for mushroom growers, with 65% of Irish growers in a producer organisation at present. This scheme provides an important mechanism for growers to achieve greater bargaining power in the marketplace by becoming part of a larger supply base. Between 2005 and 2015, a total of €39.8 million was paid to mushroom producer organisations as part of the EU Producer Organisation scheme. I recently arranged the payment of just under €1.57 million to one of our mushroom producer organisations.

My Department and its agencies will continue to work with the industry including producers in Cavan and Monaghan through this challenging period.