The rising tide of milk supplies brings with it both production and marketing problems which must be resolutely faced by all concerned. On the production side the existing creameries and dairy products factories, together with the new factories being planned, will provide for us adequate capacity for producing a diversified range of dairy products. On the marketing side An Bord Bainne, by utilising the most modern methods of market research and advanced marketing techniques, will continue to tackle the problem of export marketing in the businesslike way of which it has already shown itself capable. This vigorous and intensive approach to export marketing is now more than ever necessary because of the tendency again becoming apparent for world production of dairy produce to outpace consumption. Successful marketing cannot, however, fully succeed without continued improvement in the standards of quality of our dairy products and this in turn is dependent on the quality of the milk supplied to creameries by the milk producers. With a view to improving milk quality I have recently announced that as from 1st May, 1965, a price premium will be paid to producers of high quality milk. Details of the scheme have been circulated to creameries. The scheme provides for the payment by the Exchequer of a special milk price allowance of one penny per gallon on milk tested under the scheme and found to be of premium quality. This special milk price allowance is in addition to the existing milk price allowance of 4d per gallon which will continue to be paid on all milk supplied to creameries and used for the manufacture of dairy produce.
Government recognition of the importance of the dairying industry in the agricultural economy and indeed in our whole national economy is evidenced by the amount of State assistance which is being afforded to the milk producer through direct milk price assistance and subsidisation of our exports of dairy produce. In the year just ended the cost to the Exchequer of this assistance was about £8.2 million. In the current financial year, this figure could rise to over £10 million which is a very substantial sum indeed. Of this amount, over £3 million is expected to be required to meet export subsidies on butter and other dairy products and practically all of the balance takes the form of direct milk price allowances.
The sum of £30,000 will be paid to the National Dairy Publicity Council as a grant-in-aid to meet one-half of its proposed expenditure for the year on the promotion of increased consumption of milk and dairy products on the home market. The other half of the expenditure is contributed by the other three bodies which with my Department are represented on the Council—An Bord Bainne, the Dublin District Milk Board and the Cork District Milk Board. The Council, which was established last June, has already commenced the promotion by press, radio and television advertising of increased consumption of cheese which is the product that in our circumstances gives most scope for increased domestic consumption, but its activities will cover milk and other dairy products as well.
During the past year pig numbers have been increasing satisfactorily. The January, 1965, census showed numbers up by over 14 per cent as compared with January, 1964. A continuance of this expansion will readily enable us to achieve the production target which we set for ourselves in the Second Programme.
The Multilateral Understanding on the supply of bacon to the United Kingdom came into operation on 1st April, 1964. During the year to 31st March, 1965, Ireland supplied its full basic quota of 27,000 tons and an additional 500 tons allocated from the general "reserve" quantity provided for in the Understanding. Our basic allocation is again 27,000 tons for the year 1965-66 and we will also be entitled to our appropriate percentage share of any allocations from the reserve.
While the operation of the Understanding has had some stabilising effect on bacon prices on the British market, the actual price levels during the past year were not as high as we would have wished and a considerable measure of financial support for our exports continued to be required. Also, last year's increase in the barley price was reflected in higher guaranteed prices for good-quality pigs and this in turn increased our commitment for export support.
The Pigs and Bacon Commission has, since April, 1964, been centrally handling the export of bacon and, more recently, of pork. Progress is being made towards improving the quality of our bacon exports and strengthening the organisation of marketing arrangements in Britain. Since last autumn the Commission have been undertaking an intensified marketing campaign for our bacon in the Glasgow area and have been meeting with a considerable measure of success in establishing the identity and increasing the demand for our bacon in that area.
One of the factors which has been militating against the production of the highest quality bacon here has been the obsolete condition of plant and equipment at bacon factories, as well as the lack of modern up-to-date equipment particularly in the field of refrigeration. Unlike our fresh meat processing plants, our bacon curing industry is a long established one and inevitably a number of premises and the plant and equipment in these premises fell far short of what is required in present day conditions. To remedy this situation we introduced a few years ago a scheme for the modernisation and re-equipment of bacon factories under which very generous grants were offered for modernisation and re-equipment works. To date we have spent almost £300,000 on this scheme; in the current financial year we are providing a sum of £150,000. Excellent work is being carried out under the scheme and we are well on the way towards having a modern well-equipped and, we hope, efficiently run bacon industry.
There is one unsatisfactory element in pig production in the last 12 months to which I must refer. In the late summer and autumn of last year as a result of a buoyant demand for bacon on the home market at a time when it was necessary to maintain shipments of bacon to Britain at fairly high level to meet our obligations under the Multilateral Understanding, pig prices increased and at the same time the differential between prices for good-quality pigs and heavier pigs narrowed. This led to a deterioration in granding performance and to excessive supplies of fat bacon when normal conditions returned. Whatever short-term advantages accured to producers by producing heavy pigs and to bacon currers in offering high prices for such pigs were more than cancelled by the fall in prices for heavy pigs which subsequently took place. Pig producers and bacon curers must come to realise that the long-term wellbeing of the industry lies in the production of top-quality pigs, the production of which is insulated against loss by our system of guaranteed minimum prices. If we are to have centralised purchasing of pigs—and this is a large issue affecting many interests and requiring careful consideration—a principal objective must be to establish and maintain a stable price level which will ensure the production only of the high-quality type of lean pig which the modern bacon and pork market demands. My Department are at present examing an outline of proposals for the centralised marketing of pigs which the Pigs and Bacon Commission have prepared as a basis for discussion.
Later this year we will be increasing pig prices to compensate for this year's increase of 5/- per barrel in the barley price announced some time ago. This will further increase our commitment for export support but, because pig production is such a vital part of our farming economy, and particularly the economy of small farms, this is a situation which must be faced.
The various pig breeding and pig improvement schemes are continuing to make satisfactory progress. Special reports have been published during the past year on the two main schemes for pedigree breeding stock, i.e., the Accredited Pig Herds Scheme and the Pig Progeny Testing Scheme. The extension of the Cork Progeny Testing Station to double its existing capacity will be completed within the next three months or so. Increased numbers of proven Landrace and Large White boars were also imported from Britain during the past year and leased to breeders. These importations will be continued and we may if circumstances justify go further afield for improved breeding stock.
As regards the poultry industry, only two sectors have been showing any expansion in recent years, namely broiler production and the export trade in day-old chicks. The number of broilers consumed here has risen from less than a million in 1958 to almost 6½ million in 1964, and it seems likely that the demand for broiler meat will expand still further. So far, there have been no exports of broilers, but there are prospects of a large-scale integrated enterprise being established in the West Cork area with an initial output of 7-8 million broilers per annum—all for export. In order that our producers here should have access to the best broiler strains available, it has been the practice for my Department to import, or to permit the importation by private interests, of top-class American strains.
Exports of day-old chicks reached 3,008,000 in 1963, and 2,870,000 in 1964. This trade has been interrupted during recent months, as the discovery of Fowl Pest virus in a number of poultry flocks here and in the North, following routine tests, made it necessary to suspend cross-border trade. This has seriously limited the income of many hatching egg supply farmers attached to exporting hatcheries.
Turkey numbers were again down at the June census and exports during the Christmas period were very low. The decline in this sector of the industry is, of course, due to the expansion of large-scale turkey production units in Britain during the past few years. These have accounted for there of some 6 million birds over the an increase in turkey production past ten years.
As already announced, the Government have decided to increase the basic price for millable wheat of the 1965 crop by 3s. per barrel, thereby bringing the price up to 77s. 6d. per barrel or £31 per ton.
The acreage sown to wheat in 1964 was lower than in previous years. The average yield per acre was again somewhat disappointing, but the harvest was good and over 98 per cent of the crop was purchased as millable. One of the main factors contributing to the reduction in acreage in recent years has been the marketing problem. Efforts to establish standards that would be acceptable to both producers and millers have been under examination for a considerable time. In an endeavour to bring these efforts to a successful conclusion, Dr. Robert Olered, Head of the Cereal Chemistry Department of the Swedish Seed Association, was invited by my predecessor last year to study the question of wheat standards and wheat marketing here. Dr. Olered's very helpful report is at present the subject of discussions with all the interests concerned, and I am hopeful that a considerable improvement in the marketing system will result from these discussions. The improvement in the marketing system, together with the increase in price, should assist in arresting the decline in the wheat acreage which has taken place in recent years.
The 1964 feeding barley acreage was the largest on record, 329,000 acres, but, as in the case of wheat, the average yield per acre was somewhat less than in previous years. The out-turn from the crop was, therefore, less than might have been expected, due mainly to adverse weather conditions during the growing season. In pursuance of its objective, as set out in the Brown Book, of increased economic production and greater utilisation of feeding barley, the Government have increased the floor price for feeding barley of the 1965 crop by 5s. per barrel, therby bringing the price up to 45s. per barrel, or £22 10s. per ton. I am confident that this will operate to ensure a further increase in the barley acreage, thereby increasing farm income and reducing our requirements of imported coarse grains.
The arrangements for the marketing of home-grown barley and for the importation of coarse grains which have been operated through An Bord Gráin during the past two years will be continued for the coming year.
I am confident that we shall be able to announce the successful completion of the Bovine Tuberculosis Eradication Campaign in the coming Autumn. A very substantial clearance of reactors was affected last year. In the six southern counties which are not yet attested, the incidence of disease had been reduced to 0.5 per cent at the end, in February last, of the third round of clearance testing. The fourth round was started immediately and will I trust, be satisfactorily concluded in August. I take this opportunity of expressing my appreciation of the way in which all the interests concerned— the country's herdowners, the veterinary profession, farmers' organisations and the livestock trade—have worked together with the Department in this great task.
We are now in a position to embark upon the eradication of brucellosis, or contagious abortion. This disease causes serious loss of calves, infertility in cows, and reduced milk yields. Its elimination from the country is the main veterinary objective in the Second Programme for Economic Expansion. Much preliminary work has been done by my Department in this matter, including a survey of every milk-supplying herd in the country. This has shown that while, fortunately, the incidence of the disease is very light in the counties of the North and West, it is quite a problem in the main dairying and breeding areas of the South and in the counties around Dublin.
A scheme for the vaccination of young heifer calves in the problem counties will commence in June. Vaccination at the proper time will give practically life-long immunity. Vaccination at a later stage, however, will turn the animal into a reactor and I intend, therefore, to restrict the sale and use of anti-abortion vaccine. Subject to the passage of the necessary legislation, I hope to commence the eradication programme proper in the Autumn, starting with some counties where the incidence is very low. In general, the scheme will be developed on somewhat the same lines as the Bovine Tuberculosis Eradication Scheme. A scheme for the registration of certified brucellosis-free herds will also be announced shortly.
The response in the 1964 season to the intensive voluntary campaign for the eradication of the warble fly, which was initiated in the previous year, was quite encouraging. Over 2,000,000 of the country's 5,000,000 cattle were dosed with a new systemic dressing from 5th September to 30th November, 1964. Consulations are at present pending with the various interested organisations, whose help and co-operation contributed to last year's effort, with a view to the expansion of the campaign in 1965 to cover the treatment of all cattle in the country. Apart from losses due to lower milk yields and general unthriftiness, the warble fly causes up to £200,000 damage to hides each year.
With the full co-operation of stockowners, farming associations and other parties concerned, it is felt that the pest could be completely eliminated in the course of a few seasons through the use of the new dressing I have already mentioned. It is proposed that, as from a date yet to be fixed, the exhibition of warbled cattle at fairs and markets will be made illegal and the export of cattle so affected will be prohibited.
The continued incidence of sheep scab in this country constitutes a threat to the future exports of Irish sheep to Britain where the disease was eradicated some years ago. The eradication of scab can be achieved only by ensuring that a 100 per cent dipping programme is carried out over a period of two or three years and steps are being taken by my Department to implement such a programme in this and succeeding years. Action already taken by the Department in preparation for an eradication campaign includes a survey of the dipping facilities throughout the country and approaches to county councils to carry out any necessary repairs to existing facilities and to provide additional baths where necessary. A subsidy of 50 per cent of the cost of new baths will be available to local authorities from the Department's funds and grants have also been provided for the erection of private sheep dipping and handling facilities. In addition, the existing Sheep Dipping Orders will be amended at an early date to meet the needs of an eradication campaign. These amendments will provide for the use of single-dipping type dips only, the compulsory dipping of all sheep in each of two separate prescribed dipping periods each year as against one dipping period at present, and the tightening up of the arrangements relating to the certification of dipped sheep. A widespread publicity campaign in the national and local newspapers and other media is proposed in support of the eradication effort.
Proposals put forward in the Second Programme for Economic Expansion for the extension of the Department's veterinary services included provision for the establishment of a number of regional veterinary laboratories to supplement the service at present being given from the Veterinary Research Laboratory at Abbotstown. The aim is to provide an improved diagnostic, investigational and advisory service for the whole country and the siting of the laboratories was considered on the basis that they should be located in areas with a high density of livestock and in centres with good communications to facilitate the rapid transmission of perishable specimens submitted for diagnosis.
Plans are being prepared for the erection of four laboratories at Cork, Limerick, Sligo and Athlone to cater for the South, West, North-West and Midlands respectively. The Central Laboratory at Abbotstown will continue to serve the Eastern part of the country. The location of the new laboratories was decided with a view to giving an overall coverage of the country, the general idea being that each laboratory would provide a service for stockowners and veterinary practitioners within a radius of 50-60 miles. It is hoped that the first of these laboratories, that at Sligo, will be operational by the end of this year.
The provision in the estimates for An Foras Talúntas is £1,293,280. This includes, for the first time, provision, £150,000, for a grant for capital purposes, the original Capital Fund of £840,000 which was provided by the American Government having been exhausted. The proposed grant towards the non-capital expenses of the Institute is £1,143,280, which represents an increase of 12½ per cent on that for 1964/65. Research is, of course, of the utmost importance under present conditions and the Institute has in hands a very full programme of agricultural research which should help in solving many of our problems.
The upward trend in the consumption of fertilisers continues. Since 1957/58 the use of nitrogen and phosphates has increased by 90 per cent and of potash by over 70 per cent. Under the Ground Limestone Transport Subsidy Scheme the full cost of carriage of ground limestone from the production plant to the farm is met from State funds. Thanks to the Scheme there has been a marked increase in the use of ground limestone in recent years, to a figure of 1,079,000 tons for the year ended 31st March, 1964. This figure is still not high enough, however, as it has been estimated that upwards of 1½ million tons per annum are required merely to replace current annual losses through rainfall and removal in the form of stock, crops, etc. I decided that there should be special publicity and promotional measures, aimed at securing use of 1½ million tons this year. These measures have included press and television advertising and enlistment of the support of farming organisations and of the committees of agriculture in the various counties. It is too early yet to say what will be the result of the campaign to secure greater use of lime but I hope that the measures already taken and other publicity measures contemplated for the summer and autumn will bring about a much needed increase in lime usage.
Land reclamation and improvement works are proceding at an active pace under the Land Project. During the past year 91,300 acres were reclaimed or improved by farmers with the aid of grants amounting to £1.64 million provided under the Project. This was an increase of £20,000 in grant expenditure as compared with the previous year. The number of applications received from farmers during the year was 21,700, which was the second highest figure in the past five years. Special attention continues to be given to the reduction of the backlog of uninvestigated applications in those areas where arrears are heaviest with the aim of shortening, as far as practicable, the waiting period between the date of receipt of application and the date of issue of approval for work.
Improved facilities were introduced during the past year under the fertiliser credit scheme and also under the scheme of grant aid for the fencing of mountain grazings. Demand from farmers under each of these schemes has recently been showing a welcome increase and I hope this trend will continue.
A new scheme aimed at the production of increased "keep" at critical periods from mountain grazings was also introduced and should, in conjunction with the fencing scheme, help towards better utilisation of mountain lands.
Substantial increases introduced in February, 1964, in the rates of grants for farm buildings and in the range of purposes for which they are provided, had the effect of increasing applications received, work done and expenditure under the farm buildings scheme. Grant expenditure went up from approximately £1.2 million in 1963-64 to £1.65 million in 1964-65 and as there is every indication that interest in the scheme will continue to grow, provision is made in the current year for grant expenditure of £1.8 million. The amount and number of grants for the installation of water in farmyards and fields also continue to expand.
I should now like to say a few words on the subject of agricultural education. The view was once common that one did not need any training to farm successfully. Fortunately that view is losing ground in recent years but there is still a lot to be done. A recent study in my Department showed in a very striking way that education is very closely associated with success in farming and that the possession of both post-primary and agricultural education trebled one's chances of being in the group of highly successful farmers. The Brown Book Agriculture in the Second Programme for Economic Expansion emphasises the importance of agricultural education and training and describes the facilities which are available. Work which started some time ago on two new Agricultural Schools at Athenry, County Galway and Clonakilty, County Cork, is nearing completion and the new schools will shortly be ready for opening. The two-year course of instruction hitherto provided at the Munster Institute, Cork, for young women desirous of qualifying as instructor of poultry-keeping and butter-making under a county committee of agriculture or as teacher of these subjects will be extended, as from August, 1965, to a three-year course. A three-year course of instruction in farm home management will also be introduced in August, 1965, at the Institute for the first time. A horticultural school to be conducted by my Department is to be incorporated in the Kennedy Memorial Park at Ballysop, Wexford. About 54 acres of the park land have been given over to the school purposes. The district is particularly suited to commercial horticulture and full advantage will be taken of this in the training to be given. A one-year residential course will be provided for about 30 students and it is hoped that the school will be ready for opening before the end of 1967. A scheme of farm apprenticeship, administered by a Board representative of various agricultural interests has got under way. The first apprentices were placed on farms in the Autumn of 1964. My Department will contribute towards the costs incurred by apprentices in attending short annual courses and the first course of this kind will be held in Athenry Agricultural College next October. The Department will also provide a number of awards to young men who complete the four-year apprenticeship period with special merit in the final examination.
As Deputies will be aware, negotiations with a view to improving our permanent trading relations with Britain have been in progress for some time. It is still too early to say what will emerge from these negotiations but obviously any worthwhile new agreement would have to include improvements for our agricultural exports to Britain. There is an increasing tendency towards the regulation of imports of agricultural products into Britain. It will be remembered that imports of butter and bacon into that country are already subject to quantitative regulation and that efforts were made in 1964 to introduce a market-sharing arrangement for meat, which would have affected our exports of live cattle, sheep and lambs as well as carcase beef, mutton and lamb. Having regard to the very substantial proportion of our agricultural exports which is disposed of in Britain, this trend, towards limitation of access to the market there, is a matter of serious concern to us and it is, therefore, vital to do everything possible to ensure that in the years ahead market outlets will be available for the increased production envisaged under the Second Programme for Economic Expansion.
With regard to the European Economic Community, our application for membership still stands and will be actively pursued when circumstances make this course desirable in the national interest. We are continuing to maintain contact with the Community both at Ministerial and at official level. In January last I myself visited Brussels and had informal discussions with Dr. Mansholt, Vice-President of the EEC Commission who is responsible for agricultural matters in the Community, and also with Mr. Jean Ray, the member of the Commission who is responsible for external relations.
I also had very useful discussions at that time with the Belgian Minister for Agriculture, Mr. Heger, the German Minister for Agriculture, Dr. Schwarz and the British Minister for Agriculture, Fisheries and Food, Mr. Peart. Both Mr. Heger and Dr. Schwarz had already visited Ireland and I am very glad that Mr. Peart found it possible to come here last week when we had the opportunity of having further valuable discussions.
Turning now to the prospects for the present year, I am confident that 1965 will prove to be another good year for agriculture. Our principal commodity is cattle and the indications are that cattle and beef prices in export markets will continue to be well maintained. Milk production has been expanding rapidly in recent years and given suitable weather conditions a further substantial improvement is expected this year. Sheep production is at a record level, and pig numbers are showing signs of rapid expansion. I have already announced increased prices for wheat and feeding barley and the prices of sugar beet and malting barley have also been raised. The recent increase in agricultural wages and the rising level of rates will add appreciably to farmers' costs but with increased and more efficient production at higher prices I have no doubt that, given a reasonable season, agricultural income should move upwards again in 1965.
In conclusion, may I add that the problems of agriculture in this country as elsewhere are numerous and complex. I do not pretend to have answers for them all. I have endeavoured in this speech and in the notes which have been circulated to give Deputies a detailed and comprehensive view of the whole position. I shall welcome their comments and any suggestions they may wish to make.
