Michael Lowry (Tipperary, Independent)
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568. To ask the Minister for Agriculture, Food and the Marine further to Parliamentary Question No. 542 of 16 May 2023, if he will provide the metrics used by officials in his Department to conclude that financial supports through the Brexit Adjustment Reserve Fund were inapplicable for the sheep farming sector, as he is aware, the sheep farming sector is one of the most affected sectors as a result of the UK's withdrawal from the EU; the additional financial provisions that he will provide to assist the sheep farming sector; and if he will make a statement on the matter. [25924/23]

Charlie McConalogue (Donegal, Fianna Fail)
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Despite a sustained and welcome increase in the average weekly price of sheep since the end of February, I recognise that sheep farmers are experiencing more challenging market conditions in 2023 compared to recent years. Prices are a matter for negotiation between buyers and sellers but it is encouraging to see that markets are now returning consistently better prices for farmers than at the start of the year.

According to my Department’s weekly Meat Market Report, the national average price for Irish sheep during the third week of May (week 20) was €7.49/kg which was within 2% of the prevailing level for the corresponding period in 2022. Factory offers will vary by plant, category, carcase weight and bonus specifications with supplies influenced by weather conditions and a sizeable carryover of hoggets for processing from last year.

The sheepmeat price data published by my Department does not provide conclusive evidence that the sector has suffered any persistent adverse impact as a result of the UK's decision to withdraw from the EU. The overall price trend as measured by the average annual price for all sheep categories has been predominantly positive for primary producers during that period and has markedly exceeded the 2016 average price for the last three years.

The sheep sector is also notably less dependent on the UK market than some other agrifood commodities such as beef. According to the CSO, the UK accounted for 43% of total beef exports by both value and volume in 2022; whereas sheepmeat exports to the UK last year accounted for 13% and 16% of total category exports in value and volume terms respectively.

The Brexit Adjustment Reserve (BAR) established by the EU Commission provides financial support to the most affected Member States to counter the adverse consequences arising from the withdrawal of the UK from the EU. Expenditure under the BAR must demonstrate a direct link to the negative impact of the withdrawal of the UK from the EU and to date no clear case has been made on claiming BAR funding.

It should also be acknowledged that my Department provides significant support to the sector in form of a dedicated sheep scheme under the new CAP Strategic Plan (CSP), and through a broad range of other CSP schemes in which sheep farmers can participate. These include the ACRES and Organic Farming 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.

Additionally, I have supported livestock farmers in dealing with increased costs over the last year by providing €66.5m in aggregate funding for the introduction of a fodder incentive scheme, a national liming programme and a package to encourage the sowing of multispecies swards and red clover.

My officials will continue to monitor developments in sheepmeat markets and the Government will continue to make every effort to support the sector having regard to current budgetary circumstances and constraints.