Neale Richmond (Dublin Rathdown, Fine Gael)
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171. To ask the Minister for Agriculture, Food and the Marine the way the Irish agrifood industry has adapted since the outbreak of Russia’s war in Ukraine; and if he will make a statement on the matter. [60616/22]

Charlie McConalogue (Donegal, Fianna Fail)
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Russia's illegal invasion of Ukraine has caused significant implications across all sectors of the economy, including the agri-food sector. As well as the immediate humanitarian crisis, which must take priority, we need to take the necessary steps to ensure that the agri-food industry can maintain food security for EU citizens, for the Ukrainian people and in the wider global context.

Following a record year for Family Farm Income in 2021, significantly higher production costs are a feature across all sectors in 2022, with higher fertiliser, feed and fuel prices leading to an increase in agriculture input costs. While there has been increases in output prices, this is unlikely to cover the additional input costs for many farmers. 

With fertiliser prices in September up by 122% on the same time in 2021, it has resulted in a reduction in fertiliser use during the year. Fertiliser merchants have indicated that there are adequate supplies of fertiliser in Ireland at present. However, there may be issues with availability of certain products at times and importers are active in securing alternative supply lines where necessary.

Animal feed and energy prices have also increased substantially in the past year. There are sufficient supplies of animal feed at present and importers are actively competing on the global market to ensure that supply continues uninterrupted.  Animal feed stocks and imports are being monitored on a regular basis by the Department.

Agri-food exports are grown significantly in value in 2022, particularly the value of dairy products, beef and beverages, which combined account for close to two-thirds of all agri-food exports.  Exports to Russia of dairy produce and beverages, our largest agri-food exports there, have fallen considerably in 2022 but alternate markets have been found for these products.

I have managed the impact of the Ukraine crisis on Irish agriculture and supply chains proactively with stakeholders. Since the invasion of Ukraine started, a number of measures, valued at €91 million, to assist the agri-food sector have been introduced including:

- €56 million Fodder Support Scheme

- €20 million in two packages for the pig sector,

- €12 million for the tillage sector and

- €3 million for the horticulture sector.

These targeted measures will help Irish farmers at a time of escalating costs and build resilience against the expected impact of the situation in Ukraine.

In Budget 2023, the Government provided welcome supports in response to the current cost of living crisis, including the continuation of the reduction of excise duty on agricultural diesel to nil; the Temporary Business Energy Support Scheme, which will provide important support for farmers and food businesses with their energy bills; and the delivery of new loan schemes to benefit farmers, fishers and food businesses.

The agri-food industry has shown its resilience over the past year and have adapted to the changing environment, as it has adjusted to multiple challenges in the last number of years such as COVID-19 and Brexit. I will continue to engage with all our stakeholders and continue to work across Government, and with our European partners, to respond to this crisis, using all of the tools at our disposal to protect our farm families and their businesses through this period of significant upheaval.