Bernard Durkan (Kildare North, Fine Gael)
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167. To ask the Minister for Agriculture, Food and the Marine the extent to which the future of the cereal market is assured; the way in which it is likely to be affected by external forces; and if he will make a statement on the matter. [41724/18]

Michael Creed (Cork North West, Fine Gael)
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The tillage sector is an integral component of the Agri-food industry, making a significant contribution to overall agricultural output. Crop production as a whole including Horticulture, contributes in the region of €700 million annually to agricultural output at farm gate prices.

In particular, the cereals sector is a major contributor to livestock production providing high quality grain to the animal feeding industry. The cereal sector is also a key source of seed production as well grain for the milling and malting industry and is therefore a significant stakeholder in our agri-food industry from a supply/food safety and sustainability viewpoint. I am most conscious that the maintenance of an efficient and viable tillage sector in Ireland is of the utmost importance as it reduces our dependence on imported cereals.

I acknowledge that cereal production has experienced difficult challenges in recent times in terms of weather conditions throughout the spring and summer of this year. In relation to cereal markets, Ireland only accounts for approximately 1% of EU production. Grain prices here are very much affected by European and world market price shifts linked to supply/demand issues and tend to experience volatility. The current situation for the cereal sector is that it has experienced, as a result of the drought in Europe, a spike in prices and a drop in the harvest forecast for the 28 Member States including Ireland.

I would like to add that my Department has provided and continues to provide, a range of supports to assist this vital sector. In 2017, I introduced the €150m Agriculture Cashflow Support Loan Scheme and extended it through provision of national exchequer funding to cover the tillage and horticulture sectors. As a further support to tillage farmers the Tillage Capital Investment Scheme under TAMS II covers specific areas of investment with over €3.9 million paid out to tillage farmers to date. My Department announced earlier this year the extension of the Protein Aid Scheme with the same level of funding as 2017. Furthermore in August this year I announced a €2.75 million fodder production incentive measure for tillage farmers to encourage tillage growers to actively engage in the fodder market and there has been very positive engagement.    

My Department additionally provides a high quality official crop seed certification scheme to the industry, in addition to an extensive national crop variety evaluation programme.

The agri-food sector is exploring the development of niche and specialist markets for cereal products which have the potential to improve competitiveness and sustainability. The demand for Irish malting barley is growing in line with the sustained growth in demand for Irish whiskey. The opportunity offered by maximizing the amount of Irish grain must be developed to the benefit of all involved.

In conclusion I would also encourage tillage growers to fully implement the advice and research provided by Teagasc in relation to efficient and sustainable production of crops. I am committed to this important sector which plays a key role in the development of the wider agri-food industry.