Matt Carthy (Cavan-Monaghan, Sinn Fein)
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322. To ask the Minister for Agriculture, Food and the Marine his proposals to support the pig sector in response to the decreased prices received by farmers, increased feed costs and issues relating to processing capacity at meat factories; and if he will make a statement on the matter. [2773/22]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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324. To ask the Minister for Agriculture, Food and the Marine the measures including financial support that will be introduced to support the pigmeat sector through the present serious difficulties; and if he will make a statement on the matter. [2817/22]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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325. To ask the Minister for Agriculture, Food and the Marine if his Department can support an increase in processing capacity at pigmeat plants due to present difficulties; and if he will make a statement on the matter. [2818/22]

Charlie McConalogue (Donegal, Fianna Fail)
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I propose to take Questions Nos. 322, 324 and 325 together.

Price volatility is a significant issue for the pig sector, highlighting the cyclical nature of prices in the sector. The current difficulties are made more acute by the recent sharp rise in input costs for the sector.

The pig sector has shown exceptional growth over the last decade. It is the third largest agri-food sector, accounting for 6.3% of the output value of the agri-food sector and generated exports of €893 million in 2020; with 2021 figures to end of October at €765 million. 

The average price paid for pigs in Ireland has fallen in recent months, in line with trends across the EU. The 2021 average price was 8.71% lower than that of 2020.

The first week of 2022 (w/e 9^thJanuary) saw the average grade E pig price come in at 142.72 €/100kg,  8.14% lower than the same week last year. However, this is still well above the EU average price of 132.15€/100kg.

My Department continues to support the Irish pigmeat sector and facilitate its development by prioritising market access, both through maintaining existing markets and pursuing access to new ones.

My colleague, Minister of State Martin Heydon chairs the Pig Roundtable, which was established in early 2021, and the next meeting of which will take place next week. The Pig Roundtable focuses on key strategic developments for the sector in line with priority actions set out in the Programme for Government and Food Vision 2030.

In relation to any processing constraints in the sector, my officials have liaised closely with the Department of Enterprise, Trade and Employment in relation to labour shortages in the meat processing sector. As a result, additional employment permits for workers from outside the EU and EEA were approved by that Department in October last year, including  a new allocation of permits for 1,500 meat processing operatives and 500 meat de-boners.

My officials continue to monitor the market situation closely and I have met with stakeholders to discuss concerns. Our pig farmers have always been remarkably resilient but I am acutely aware of the challenges they are facing at present.

At this week's Agriculture Council,  I clearly expressed my concerns in relation to the difficulties facing the Irish pigmeat sector, both in relation to the ongoing impact of increases in fuel, fertiliser, feed and energy prices over recent times which are putting farmer margins under significant pressure; and the sustained nature of the difficulties being experienced on the pigmeat market. I sought the rapid deployment of appropriate solutions on both issues. 

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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323. To ask the Minister for Agriculture, Food and the Marine the outcome of discussions at the recent European Council of Agriculture Ministers in relation to the serious difficulties facing the pigmeat sector at present; and if he will make a statement on the matter. [2801/22]

Charlie McConalogue (Donegal, Fianna Fail)
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I clearly expressed my concerns in relation to the difficulties facing the Irish pigmeat sector at the this week's Agriculture Council, both in relation to the ongoing impact of increases in fuel, fertiliser, feed and energy prices over recent times which are putting farmer margins under significant pressure, and the sustained nature of the difficulties being experienced on the pigmeat market. I sought the rapid deployment of appropriate solutions on both issues. 

The average price paid for pigs in Ireland has fallen in recent months, in line with trends across the EU. The 2021 average price was 8.71% lower than that of 2020.

The first week of 2022 (w/e 9^thJanuary) saw the average grade E pig price come in at 142.72 €/100kg,  8.14% lower than the same week last year. However, this is still well above the EU average price of 132.15€/100kg.

My officials continue to monitor the market situation closely and I have met with stakeholders to discuss concerns this week. Our pig farmers have always been remarkably resilient but I am acutely aware of the challenges they are facing at present.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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326. To ask the Minister for Agriculture, Food and the Marine if financial assistance will be made available through existing Covid-19 and Brexit related support funding; and if he will make a statement on the matter. [2824/22]

Charlie McConalogue (Donegal, Fianna Fail)
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Brexit supports

The Deputy will appreciate that significant administrative resources in the Department of Agriculture, Food and the Marine are being utilised on an ongoing basis for Brexit related purposes, the cost of which cannot all be isolated.  The Department’s response to the challenges of Brexit has also led to an increased allocation for the Department's State Bodies, such as Bord Bia and the Sea Fisheries Protection Authority.

Access to finance is a crucial business need and, as well as liaising with the main banks on issues relating to the agri-food sector, the Department  of Agriculture, Food and the Marine works closely across Government to provide important supports for businesses, including farmers, fishers and food businesses.

Most recently this has been to ensure that they have access to finance during the pandemic and also to help deal with the challenges brought about by Brexit. These supports have been delivered through the Strategic Banking Corporation of Ireland (SBCI). 

Launched in September, the Brexit Impact Loan Scheme (BILS) has a capacity of up to €330 million providing an important support for businesses to ensure that they have access to finance during this pandemic and to help deal with the challenges brought about by Brexit. Available through participating banks and credit unions, the BILS provides loans to Brexit-impacted Irish businesses for working capital, investment and re-financing, with terms of up to six years.

Loans range from €25,000 to a maximum of €1.5m, are available for terms of between one and six years, with up to €500,000 available as unsecured finance.  My Department's funding ( €5.506m in 2021) ensures that up to 40% of the Scheme will be available to the agri-food sector.

My Department also co-funds the €800million Future Growth Loan Scheme (FGLS) with the Department of Enterprise, Trade & Employment. It supports strategic long-term capital investment by SMEs, farmers and fishermen.  The allocation of €7.315 million in my Department’s 2021 Supplementary Estimate facilitated the Scheme for 2022.

In response to any current difficulties caused by the pandemic in accessing credit, the Covid-19 Credit Guarantee Scheme also provides an important source of working capital and investment finance.

In 2022, €40m has been allocated for Brexit related purposes for the fisheries sector (€32m), the horticultural sector (€1m), and €7 million has been provided to fund an Enterprise Ireland capital investment scheme for meat and dairy processing. 

The latter scheme will support investments aimed at product and market diversification.  It is jointly funded by my Department and the Department of Enterprise, Trade and Employment.. 

It is expected that the €40m of funding as outlined, will come from the Brexit Adjustment Reserve, which provides financial support to the most affected Member States to counter the adverse economic, social, territorial and, where appropriate, environmental consequences of the withdrawal of the UK from the EU. 

Expenditure under the Reserve must demonstrate a direct link to the negative impact of the withdrawal of the UK from the EU, and failure to do so will see the European Commission deem expenditure ineligible. It is anticipated that the Department will receive further funding from the Brexit Adjustment Reserve during 2022.  My Department is working closely with the Department of Public Expenditure and Reform in this regard.

Covid-19 supports

With regards to Covid-19 related assistance, Ireland was allocated €189m in European Recovery Instrument (EURI) funding for the transitional period.  This EU funding, was programmed through the Rural Development Programme in 2021 and 2022, with commitments and expenditure possible up to the end of 2025.  EURI funding will focus on addressing the biodiversity, climate and environment challenges in the context of economic recovery from COVID-19, through green and digital investments on farm and in rural communities, including through the LEADER Programme.  In doing so, it will maintain the level of environmental ambition in the current RDP and meet the requirements under the EURI to focus on a resilient, sustainable, and digital economic recovery.  In 2022, the EURI allocation is €71.8m.

In addition to the EURI funding, €2m of a Covid exchequer allocation was provided in the 2022 Budget for Horse Racing Ireland to assist with the cost of operating racing under Covid-19 restrictions.