Bernard Durkan (Kildare North, Fine Gael)
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170. To ask the Minister for Agriculture, Food and the Marine the extent to which he remains satisfied regarding the future of the mushroom industry here with particular reference to access to export markets; and if he will make a statement on the matter. [41727/18]

Michael Creed (Cork North West, Fine Gael)
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The mushroom industry is a critical sector within the horticultural industry with a farm-gate output for 2017 estimated at €118 million.  The UK is the most important market, given its proximity, for Irish mushrooms accounting for approximately 90% of our annual production. 

The UK market continues to be highly competitive and ongoing uncertainty over BREXIT and the impact of currency fluctuations continues to be a challenge for the industry. However despite these challenges the industry continues to be very resilient and has benefited from the long term relationships built up with its UK retail customers.

Access arrangements to the UK market post-Brexit will depend on the outcome of the UK’s Brexit negotiations with the EU. Ireland's objective in the negotiations is to have a trading relationship with the UK which is as close as possible to the current arrangements. The Government will be firm in arguing that any agreement reached between the EU and the UK must take account of the very serious challenges presented by Brexit, particularly given the unique circumstances on the island of Ireland and the importance of our economic relationship with the UK.

Additionally, my Department and its State Agencies are currently providing supports on a number of fronts to the sector. 

The EU Producer Organisation (PO) Scheme continues to be a vital support mechanism for mushroom growers, with 80% of Irish growers in a producer organisation at present. This EU funded scheme provides a mechanism for producers to work together to optimise production costs, stabilise prices and strengthen their position in the market place by becoming part of a larger supply base. Through the funding under the PO scheme, the industry has been focused on improving competitiveness through the implementation of LEAN processes and technologies. 

An Bord Bia has commenced a 3-year mushroom promotion campaign on the Irish and UK markets. This campaign is 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.

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. Funding under Budget 2019 for capital investments in the commercial horticulture sector has been increased by an additional €1 million to €6 million for 2019 in response to strong demand for investment within the sector and the emerging challenges of Brexit, further reflecting this Government's commitment to ongoing support for the sector.

The new Brexit Loan Schemeaims also 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.

I am very much committed to working with the mushroom sector to assist it in adjusting to the challenges that lie ahead.