Bernard Durkan (Kildare North, Fine Gael)
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191. To ask the Minister for Agriculture, Food and the Marine the extent to which the mushroom industry can recover from the ongoing impact of Brexit; if the issue has been sufficiently recognised at EU level; and if he will make a statement on the matter. [47293/17]

Michael Creed (Cork North West, Fine Gael)
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The UK is a very important market for Irish mushrooms accounting as it does for around 85% of our annual production.  Access arrangements to the UK market post-Brexit will depend on the outcome of the UK’s Brexit negotiations with the EU. However, during this period the Irish Government’s position will continue to be to minimise the impact of Brexit on existing trade for all our food exports including mushrooms.  As part of this process I have established a dedicated unit within my Department to consider and prepare for the direct impact of Brexit on our agri-food industry.

I am committed to working with the mushroom sector to assist it in adjusting to the challenges that lie ahead.  My Department and its State Agencies currently provide supports on a number of fronts.

The 2018 Budget provided for a new “Brexit Loan Scheme” which will provide affordable, flexible finance to Irish businesses that are either currently impacted by Brexit or who will be in the future. The new Brexit Loan Scheme aims to make up to €300 million of working capital finance available to SMEs and mid-cap businesses (up to 499 employees). This will give Brexit-impacted businesses, including potentially a number of mushroom exporters, time and space to adapt and to grow into the future.

Due to State Aid legislation the Brexit Loan Scheme announced in Budget 2018 will not be available to primary producers including mushroom growers. In light of this I have secured €25 million in funding for my Department to facilitate the development of a new Brexit response loan scheme for farmers, fishermen and food businesses in 2018 and further details on this will be announced in due course.

For the wider horticultural sector the Scheme of Investment Aid for the Development of the Commercial Horticulture Sector continues to be the main support for individual growers in the horticulture industry who wish to make capital investments in specialised equipment or buildings. I'm delighted to confirm that Budget 2018 allocated €5m in funding again for the Scheme in 2018, further reflecting this Government's commitment to ongoing support for the sector. The competitive nature of this scheme combined with its flexibility and ability to react to evolving situations are two key strengths in supporting this highly dynamic sector. An early opening of the scheme is anticipated.

The EU Producer Organisation (PO) scheme is also a vital support, with around 80% of Irish mushroom 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. In addition, this scheme is funding a number of initiatives to improve competitiveness, including Lean Training for mushroom growers.  Indeed the concentration of supply through the PO Scheme has allowed exporters in many cases to negotiate Sterling price rises from their UK customers in response to the weakening of Sterling.  Other contracts now have an inbuilt mechanism to protect against Sterling volatility or are based in Euro.

I can also confirm that starting in January 2018 An Bord Bia will commence a 3-year mushroom promotion campaign on the Irish and UK markets.  This campaign will be co-funded by the industry and the European Commission.  It is important to emphasise that the overall market for mushrooms in the UK and Ireland remains strong, showing good potential for further growth. This new promotion campaign will build on the success of previous similar initiatives and develop that growth in potential to increase exports.