Charlie McConalogue (Donegal, Fianna Fail)
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A vibrant sheep sector is as an integral element of a balanced regional economy and I know that sheep farmers are committed to producing a world-class, safe and sustainable product.

Although there has been a solid and sustained increase in average sheep prices since the end of February, I recognise that sheep farmers are experiencing more difficult market conditions in 2023 compared to recent years. Market prices, however, are a commercial matter to be bargained between suppliers and buyers and Government has no role in determining commodity prices in the sheep sector.

However, with hoggets crossing €7/kg and lambs exceeding €8/kg, it is heartening to see markets returning better prices than at the start of the year.

To bolster the sustainability of sheep farming, my Department provides significant support to the sector under the new CAP Strategic Plan (CSP), both through a new targeted scheme for sheep farmers - the Sheep Improvement Scheme, which aims to improve sheep health and welfare - and through the broad range of schemes in the CSP.

My Department has received over 19,000 applications for the new Sheep Improvement Scheme, which has a 20% increase in the payment rate per ewe - from €10 to €12 - compared to the previous Sheep Welfare Scheme.

The CSP provides almost €10 billion in supports over the period to 2027 for farm families. Sheep farmers are eligible for several other CSP schemes, including the ACRES and Organics schemes, which are particularly suited to sheep enterprises or mixed beef and sheep enterprises, and which are likely to provide higher direct payments to sheep farmers this year.

I have secured places for all 46,000 farmers in ACRES which I am certain will also benefit many sheep farmers.

Furthermore, support for early-stage producer organisations, which will be introduced later this year, will strengthen the position of sheep farmers in the supply chain.

Additionally, over the last year I have supported livestock farmers in dealing with increased costs by introducing:

- a €56 million fodder incentive scheme;

- an innovative €8 million national liming programme; and

- a €2.5m package for multi-species swards and red clover to reduce reliance on chemical fertilisers.

While market returns have reduced for sheep farmers, mainly because of increased input costs, Teagasc forecasts suggest that family farm income for specialised sheep farms in 2023 will be €19,500, a reduction of 2% on 2022. This reflects the important role which direct payments play in supporting sheep farm incomes.

With regard to the current challenges facing the sector, I have requested my officials to maintain close monitoring of market trends over the coming months and the Government will continue to make every effort to support the sector.

Having grown up on a suckler and sheep farm in Donegal, I am acutely aware of the skill and dedication of sheep farmers here. I want to ensure that there is a long-term and successful sector for this and subsequent generations of sheep farmers.

Denis Naughten (Roscommon-Galway, Independent)
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110. To ask the Minister for Agriculture, Food and the Marine the work that he is undertaking to support Ireland’s wool industry; and if he will make a statement on the matter. [16915/23]

Charlie McConalogue (Donegal, Fianna Fail)
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I thank the Deputy for his continued interest in this matter.

In July 2022, the Programme for Government commitment was delivered with the publication of the Wool Review Report.

One of the main recommendations of the report was the establishment of an independent Wool Council led by industry which would develop and promote Irish wool domestically and internationally and bring together multiple stakeholders to foster collaboration, innovation and scaling activities in the wool sector.

In support of this recommendation my Department committed €30,000 in financial assistance towards the initial set up costs of this independent council.

In December 2022, a preliminary meeting of the stakeholders interested in forming a Wool Council took place. This group discussed their common aims as well as agreeing to establish a stakeholder led working group to progress the establishment of the Wool Council. Officials from my Department also attended this meeting to outline the criteria needed to draw down the seed funding of €30,000.

The Irish Grown Wool Council was officially launched on the 5^thApril 2023. The launch was very well attended with representation from all sectors of the wool industry including primary producers, farming organisations and industry from both Ireland and Northern Ireland present on the day. My officials also attended this meeting to monitor the Council formation process and to ensure that the council membership included full representation of all industry sectors.

Following the initial set up period, the Irish Grown Wool Council will be an independent stakeholder led Council comprising of stakeholders from all sectors of the wool industry. My Department does not hold a seat on the Council. Further details regarding the Irish Grown Wool Council can be obtained directly from the Council by contacting irishgrownwoolcouncil@gmail.com.

I am very supportive of the establishment of this independent industry-led Wool Council. I hope it will bring wool stakeholders across the island of Ireland together to realise the potential of wool as a natural, sustainable and versatile material and generate a roadmap to address the current challenges and create future opportunities for this wonderful product.