Written answers

Wednesday, 8 November 2017

Department of Agriculture, Food and the Marine

Cereal Sector

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

188. To ask the Minister for Agriculture, Food and the Marine the extent to which he has had discussions with the cereal growing sector with a view to possible alleviation of difficulties arising from a difficult harvest; and if he will make a statement on the matter. [47290/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am very aware of the needs of the cereal sector and have continued to engage actively with the stakeholders on the needs of the sector, particularly through the Tillage Stakeholders Forum.  As Minister I am most conscious that the maintenance of an efficient and viable cereals sector in Ireland is clearly very important to the well being of the agrifood industry. Indigenous production of cereals is of course an important part of primary agriculture production. In addition to generating an income for our tillage farmers, the cereals sector is a key source of seed production, grain for the milling and malting industry and feeding stuffs for the livestock sector. The long-term average cereal production in Ireland is in the region of 2.2 million tonnes per annum and it is desirable to sustain this level of production in order to avoid over dependence on imported cereals. 

The 2017 harvest is estimated by Teagasc to be in the region of 2.1 million tonnes, despite a decrease in the area devoted to tillage. This is mainly due to the availability of new improved varieties capable of higher yields and thereby helping to sustain a viable tillage sector. Cereal prices are highly sensitive to global supply and demand and volatility in prices is likely to remain a constant feature of Irish cereal prices in future; grain producers should factor such fluctuations into their planning and marketing strategies. I nonetheless acknowledge the continued tight margins experienced by growers and the challenges facing the sector, as global production due to higher yields continues to outstrip demand.

The Deputy may be aware of a number of measures I introduced in this regard to sustain the tillage sector and promote its growth in the future. Among these measures was a targeted crop loss support measure to assist growers most affected by the wet weather harvest conditions of September 2016.

In addition to this measure I also introduced the Agriculture Cashflow Support Loan Scheme and extended it to cover the tillage and horticulture sectors. I have been advised by the banks that all of the €150m is committed and is in the process of being drawn down. I am pleased at the very positive reaction by farmers, including tillage farmers, to the Scheme, which has proved that significant demand exists for low cost flexible finance.

I am pleased to have secured funding of €25 million for my Department to facilitate the development of a new Brexit response loan schemes for farmers, fishermen and food businesses in 2018. Further details will be announced in due course. 

As additional support to tillage farmers I also introduced the Tillage Investment Scheme under TAMS II earlier this year.  The specific areas of investment include Minimum Disturbance Tillage Equipment, Sprayers, Rain Water Harvesting, Grain Storage and Grain dryers. This Tillage Scheme is the latest of the Targeted Agricultural Modernisation Schemes (TAMS II) to be launched under the Rural Development Programme 2014-2020. The closing date for applications under the second tranche of the new scheme was Friday 06th October 2017.  There was a significant level of interest in investments under this measure with a total number of 687 applications received to date. 457 approvals have now issued in respect of the first tranche and payments and approvals are issuing on an ongoing basis.

My Department operates a range of services aimed at improving the level of production, quality and viability of the Irish cereal sector. These services include seed certification, seed testing, crop variety testing and the publication of recommended lists of varieties, research funding through the ‘Stimulus’ competitive research programme and funding for the quality assurance scheme. In addition, Teagasc provides research, training and advisory services for cereal producers. The value of all these support services is reflected in the fact that Irish cereals producers have consistently achieved some of the highest yields in the world.

Comments

No comments

Log in or join to post a public comment.