Written answers

Tuesday, 25 October 2022

Department of Agriculture, Food and the Marine

Agriculture Industry

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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790. To ask the Minister for Agriculture, Food and the Marine the extent to which the pig meat sector is adequately supported in a highly-competitive environment; and if he will make a statement on the matter. [53543/22]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I have provided significant support to the pig sector this year as all pig producers have had to deal with enormous pressures in recent months.

As the Deputy will be aware, on the 23rd March 2022, the EU Commission announced the provision of exceptional adjustment aid to producers in agricultural sectors which have been impacted by Russia's illegal invasion of Ukraine.

The exceptional aid allocation to Ireland was €15.8 million in EU funding and there are detailed requirements and conditionality attached to this allocation set out in Commission Delegated Regulation 2022/467 of 23rd March 2022.

The Government approved my proposal to allocate €13 million of this EU funding to support to the pig sector and the EU Commission was notified to this effect.

A total fund of €13 million was made available for the Pig Exceptional Payment Scheme 2 (PEPS2), a voluntary scheme for pig farmers, to support the viability of this important sector. The scheme opened for applications on 13th June 2022 and closed for applications on 11th July 2022. This scheme provided for a payment of up to €100,000 per farmer. All eligible applicants have now been paid.

The PEP2 scheme was in addition to the Pig Exceptional Payment Scheme which I announced in February, funded by the Exchequer and notified under the agriculture de minimis state aid provisions, to support commercial pig farmers. This scheme provided for a payment of up to €20,000 per farmer. All payments have now been processed under that scheme.

In addition to the two support packages detailed above, I have had ongoing discussions with the main banks to discuss the current challenges in the pigmeat sector and the importance of their ongoing support through the current downturn in the business cycle. The key message to farmers experiencing cashflow difficulties is to engage with the banks as soon as possible to discuss options and the banks remain committed to supporting their customers in the period ahead. I have also met with the Strategic Banking Corporation of Ireland (SBCI) to discuss the finance schemes financed by the Department of Agriculture, Food and the Marine in partnership with the Department of Enterprise, Trade and Employment. These finance schemes can be used for working capital finance and include features which address the current financial needs of pig farmers and provides additional valuable support.

Teagasc has also intensified its dedicated, ongoing advisory supports being provided to pig farmers and is actively engaging with pig farmers to explore the options available to them.

My Department continues to monitor the market situation closely and engage at EU level to ensure a joined-up EU approach to the challenges arising from Russia's illegal invasion of Ukraine.

In terms of ongoing stakeholder engagement my colleague, Minister of State Heydon, chairs quarterly meetings of the Pig Roundtable. Including representatives from the farming and processing sectors, Teagasc, Bord Bia, and Department officials, the Roundtable's overarching objective is to serve as a vehicle for constructive discussion in driving forward the development of the sector as well as taking a high level approach to guiding the actions for the sector set out in Food Vision 2030.

Both Minister Heydon and I want to ensure the long term viability of the sector given its huge importance.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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791. To ask the Minister for Agriculture, Food and the Marine the extent to which the poultry production sector in Ireland remains viable; and if he will make a statement on the matter. [53544/22]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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As in other meat sectors, global trade conditions will be crucial in determining the outlook for the Irish poultry sector over the medium to longer term.

Poultrymeat, which is a food high in protein, has seen an increase in demand in recent years and this increase has seen a 10% increase in the average price paid in August 2022 when compared to the average price paid at the beginning of the year. The August average price for 2022 is 15.6% and 12.9% higher than the average price paid in August 2020 and 2021 respectively.

Poultry throughput for 2021 was slightly down on 2020 (-1.1%) with a total of 110.4 million birds processed. CSO figures show that while the volume of exports fell by 29.3% to 94,295 tonnes in 2021, the value of Irish poultry exports for 2021 fell by 7.2% to just under €237m.

The UK (€181m) accounted for 76.5% of exports. France (€8.4m), Germany (€6.5m), and Netherlands (€14.8m) also featured prominently as export destinations. Securing market access and diversifying trade remains a key aim for my Department. Developing market opportunities at home and abroad is one of the goals of Food Vision 2030.

As of August 2022 the year-to-date value of poultrymeat exports was 46.4% higher than the same period of 2021, at €204.6 million.

I am aware of the pressures being faced by many in the agri-food sector due to the increase in input costs, exacerbated by the impact of the illegal war in Ukraine. The Department continues to monitor the markets and any impacts on the agri-food sector. Poultry is normally reared under contract to processors, for a pre-agreed price, and therefore poultry producers are not typically subject to the same price fluctuations as other farmers.

I am also very aware of the contribution of the poultry production sector to Irish agri-food as a whole, supporting significant levels of direct employment as well as their role in supporting rural economies and the wider national economy and I firmly believe that the poultry production sector in Ireland remains viable.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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792. To ask the Minister for Agriculture, Food and the Marine the extent to which the cereal growing sector is adequately supported; and if he will make a statement on the matter. [53545/22]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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The tillage sector is a sector that plays a critical role in Irish agriculture. It is a sector I have backed with new and innovative schemes and a sector that I will continue to support in the future.

In recent years I have supported the sector through targeted policy interventions and supports.

This has included the Protein Aid scheme that was introduced in 2015 with a budget of €3m. The budget for this scheme has been increased to €7m in Ireland’s CAP Strategic Plan (CSP) 2023-2023.

I introduced the Straw Incorporation Measure as a pilot measure in 2021. This measure will deliver an estimated €12m in support for the tillage sector in 2022 and will be continued in the CSP 2023-2027.

Earlier this year, I introduced the Tillage Incentive Scheme (TIS) with a €400/ha payment on additional crop area. I bolstered the existing Protein Scheme by guaranteeing a €300/ha payment on beans, peas and lupins and I also introduced a Protein Cereal mixed crop scheme. These measures have been acknowledged as contributing to the estimated 6% increase in tillage area in 2022.

The Tillage Incentive Scheme is being continued for 2023 with a budget of €10million to maintain and build on the progress made by the Scheme in 2022.

The Tillage Capital Investment Scheme provides support to farmers to invest in modern equipment and infrastructure. To date, tillage farmers have received €31m in financial support under the scheme. Targeted support for capital investment in the tillage crops sector will continue in the next CAP.

I have also provided for measures which tillage farmers can access in the Agri-Environmental and Climate Measures in the next CSP.

My Department conducts a comprehensive variety trialling system to identify varieties most suitable for Irish farmers and also supports the industry through the seed certification schemes which ensures growers have access to top quality seed.

The tillage sector is a sector that we can grow significantly in the years ahead and I will continue to back the industry to develop on this potential.

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