Deputy Hugh Conaghan was given permission to raise on the Adjournment the subject matter of Question No. 31 on the Order Paper of 10 February.
Adjournment Debate. - Potato Production.
I would like to apologise to the House for the Minister not being available.
I thank you for allowing me time on the Adjournment to discuss this important issue. I wish to take this opportunity of congratulating the Minister of State on his appointment to the very important sector of agriculture. I want to emphasise the very significant importance of the potato in relation to the nation. We have only to think of the great consequences of the failure of the potato crop because of blight between 1845 and 1847. Unfortunately, today we find we are able to produce the crop in great quantities and good quality but we are unable to market it or make it an economic proposition for the farmers who are involved in it.
The farming community, particularly the people involved in potato production, in County Donegal where seed potatoes are grown extensively are in a very depressed state. The seed production, in particular, has collapsed. That is the reason why I want to elaborate on the points raised in the questions on 10 February last and bring to the attention of the Minister the importance of this particular product to see if any aid can be given to make it an economic proposition for the people who are so much involved in it.
I will deal specifically with the seed aspect of the potato industry in Donegal. In 1950 29,619 acres of potatoes were planted. Out of that there were 6,639 acres of seed potatoes. In 1980 the acreage in Donegal fell to 12,500 acres and the seed acreage was 6,162 acres. The seed production in Donegal has remained almost the same from 1950 to 1980. This area provides 70 per cent of the seed production in the potato business. In Donegal there are about 1,000 growers and 50 per cent of them are involved in conacre and 20 per cent of them are completely involved in conacre. They have no land of their own and depend solely on conacre to provide them with a living. The cost of producing an acre of potatoes today is about £800. In order to make that a viable proposition the growers would need to get approximately £100 a ton. Our production rate is an average of 14 to 16 tons an acre. Since 1970 production costs have increased by about 500 per cent. This indicates that it is becoming a very costly enterprise.
The value of the industry to County Donegal is between £3 million and £4 million. It has always been the practice that producers in Donegal obtained credit from the merchants and the co-operatives. They had an extended credit right up to the sale of the product. Unfortunately, due to the present economic conditions, that is no longer possible and the producers of seed potatoes find this year they are in serious financial difficulties because they were unable to get any market for their seed production last year. They are unable to obtain any credit now coming up to the planting season.
I would like to emphasise to the Minister of State that this is an important issue because we are now entering the planting season and some action will have to be taken. Some guarantees will have to be given to the producers to give them some confidence in the industry. There are many areas where we consider improvements could be made. Very little work has been put into the research end of the potato industry. In Donegal there have been very few advisory and research programmes. The acreage yield over the past 20 years has only increased by about 2 tons per acre. That gives very little confidence in the Department's approach to this particular aspect of agriculture because, with modern devices and new chemicals, I consider there should have been a greater input in that research department. A greater emphasis should have been put on new strains and varieties which would be economical for the farmers to produce. There were about 40 varieties on the market but most of those have now gone, particularly the Aran Banner which was a very prominent product in the Donegal area. The King Edward is on the way out. We know that there is a new variety, Cara, and a fair amount of research has gone into this. It is a protected variety and we have the exclusive right of sale. It is my opinion there will be a 50 per cent increase in acreage this year.
In relation to the French, the Dutch and the Belgians, our competitors, we must be put into a position where we can compete economically. In Northern Ireland, subsidies are given and they are able to come down here to compete. Accordingly we are unable to sell our wares. The Dutch, the Belgians and the French get incentives and it is time the Department of Agriculture thought of giving some aid to the producers of this important crop either by way of fertiliser subsidy or some form of grant to encourage growers of seed potatoes. The Potato Marketing Board must set about a more intensified search for markets so that Ireland can get back to its traditional way of life, the production of seeds in Donegal. That county has been renowned for its production of certified seed potatoes — 70 per cent of the total seed acreage was in Donegal. That industry had a high labour content and this meant there was greater circulation of money in the area.
I am asking the Minister seriously to look at the situation of this important sector of agriculture in an effort to bring it back to its former prosperity and to give confidence to those engaged in it. I advise him to look carefully at the ACOT report issued in 1982 where he will see detailed submissions on all aspects of potato production. The report gives advice and if some of it was accepted it would help the potato industry which otherwise will collapse. The Department and the various other agencies responsible for the potato growing side of agriculture must make a clear declaration of encouragement and help to people prepared to put money into the industry and who have had to put up with hardships and disadvantages between the time of planting and digging, a period of 11 or 12 months. They are never sure of the price they will get at the end.
Producers need guaranteed markets and prices, and in the meantime they need financial assistance and protection for the industry. The entire seed potato industry must be revitalised by a more dynamic approach to marketing. There must be research and advice or we will be unable to compete on world markets, or even at home, with the Dutch and Scottish suppliers. This is a challenge not only for the farmers but for the Minister and the Department. There is no confidence in the Donegal seed industry and without help and encouragement from the Minister the industry will die.
Mr. Leonard
I congratulate the Minister on his appointment. He has been involved in this type of production for some time. I should like to point out initially that this matter was not raised here today because of lack of reply earlier in the month but, because of the number of supplementaries on that occasion, we did not get a chance to pursue the matter.
I have been concerned about this industry since I came to Dáil Éireann ten years ago. Last May I expressed serious concern about massive potato imports and my worst fears were realised in January, when I asked about the tonnage of ware potatoes imported. The figure had increased from 200 tons in 1973 to 10,000 tons in February 1981 and to 11,000 tons in March 1982. That has been the trend in the past few years. It is a serious trend in a country where the potato was the staple crop. In 1973 the imports of frozen potatoes were valued at £1 million but by 1980 that had increased to £12.5 million. In the last 12 months 15,000 tons, valued at £5.5 million, of frozen chips were imported. They are startling figures because potato production is labour intensive. If we had been supplying home grown potatoes at home we would have been able to provide work for 2,000 extra people.
There are many things wrong in the industry. The Department have failed to grasp the situation. The Potato Marketing Board should be devoting themselves more to finding markets. In 1940 we produced 136,000 hectares of potatoes but in that year potatoes were mainly used for animal feed because there were no crisps or chips in those days. In 1980 the production had decreased to 40,000 hectares. In Donegal a chip factory was built but it was closed. The main varieties grown were King Edwards, Aran Banners and Home Guards. The Department did not get involved in ensuring that supplies of the varieties required for processing were available.
I spent many years of my life involved in the export of seed potatoes from Monaghan. We exported a fair tonnage of potatoes every year. At that time farmers depended on the cheque for the potatoes in winter and in spring, as they now depend on the cheque from the creamery. That gives the House a realisation of the importance of that crop in counties with a poorer type soil which is not suitable for intensive dairying or grain production. If you have a high lime content in your soil the quality of potatoes will suffer.
I ask the Minister to pursue this with all possible speed. Inside two years it is possible that we would not need to import 15,000 tons of potatoes and 5½ tons of crisps. We might be able to produce all the ware potatoes we need. We should be able to compete. I hope the Minister will examine this urgently. I know he has the capacity and the will to do it.
I should like to thank both Deputies for their kind remarks. Perhaps they should be saying they are sorry for my troubles, but that is my problem. I know both Deputies. I worked with Deputy Leonard for many years on the Council of Europe. I know their concern is genuine. I share their concern and I would welcome their assistance. Perhaps we could set up an all-party joint committee to look at the whole horticultural scene which is causing concern and involves the possible closure of a food industry in my own town.
In the period 1978 to 1981 the area under potatoes fell from 101,800 acres to 84,100 acres, but increased again to 88,600 acres in 1982. It is difficult to estimate the 1983 acreage. Producer prices for the 1982 crop were low and this may influence some growers to go out of production. I checked it out with some of the bigger growers, and they are happy enough because, even though the price was low, the yields were good and the quality was fairly good, as was the take up of seed. In the Cork area we get a good deal of seed from Donegal. I believe that flow of seed is still coming to Cork fairly strongly.
The fact that in recent years we went in for seed ourselves did not help other growers. This year seed is relatively cheap and this may encourage new growers. I am heartened by the fact that I had some inquiries from other growers about the availability of seed and so on. Last season's spring barley did not prove to be a very successful crop and this has to be taken into account also. The 1983 acreage may not differ very much from that of 1982, that is, about 85,000 acres to 88,000 acres.
Potato production has been declining for a number of years past. That trend was reversed a little in 1982. Normally home production is adequate to meet requirements and will be again this year with an estimated total production of 970,000 tons. One of the large growers said we might have over-production but that may be a bit optimistic. Last year's supplies needed to be supplemented by imports from other member states which, of course, have a free right of entry. Imports of potatoes from third countries are controlled by licence. The only problem there was Cyprus. Imports from there are now down to nil. We are having some discussions with them. They are not happy about that position. Imports from other member states have increased significantly, up to 84,500 tons in 1982.
Imports of all foodstuffs are posing a very big problem. As an agricultural country it is a shocking state of affairs to think we are importing food we could produce ourselves. Admittedly our cost of production may be high due to our high inflation problem, but it must be a very significant factor for anybody from Holland or anywhere else that they have to cope with a substantial sea journey, transport costs, controls, and so on. We should be able to beat them at that game.
Their yields are far greater.
In some of the years gone by our yields were as high as they were anywhere in the world. The yield from the variety Cara was well up. The only long term solution is that we will have to work on higher yielding varieties of seed and get better results. We have a good deal to do about quality and presentation. For the housewife, the customer, while price is a factor, quality and presentation are more significant. The quality of our potatoes is first class. We have the problem that our soil is totally different from Dutch soil which is very sandy. They do not have the adherence of clay which can be a problem for the Irish producer and does not help presentation. As I said on radio in another connection, we will have to have an advertising campaign. It has to be brought home to the Irish people that the day is gone when we could afford to bring in foreign produce because that involves problem for everyone and loss of jobs in industry.
I welcome the development of potato groups. We have some small early potato groups in our area and I am sure they are in the West too. I should like to see an expansion of those groups and, furthermore, I should like to see the co-ordination of potato groups into horticultural groups. We should take on the marketplace. I do not know how we will get around to doing this on a national scale, but it is the right idea. Obviously we would not be budgeting for the entire market in the first year but that should be our target.
We should get together on some sort of national basis with horticultural products which would include potatoes and aim at supplying the marketplace. Technology is such that even horticultural produce like cabbage can be held under controlled conditions for several months. It should be possible for us to supply most vegetables on an all the year round basis. I would welcome any help and co-operation from the people on the other side of the House. Food production is my own area and I will devote a great deal of my time to ensuring that the potato growers get a fair crack of the whip.
Very briefly, on the Irish Potato Marketing Board some very good research is now being carried out by An Foras Talúntais. They have evolved the very good varieties of Cara, Clada, Mizen and Claustar with extraordinary good yields. This is the kind of development Deputy Conaghan has been looking for and should help to ensure that we get the yields we need in this tight cost situation.
In the case of the Irish Potato Marketing Board, with the help of the lending institutions they are helping farmers to pay for seed and so on. The arrangement between the banks and the producers is quite helpful. I understand that at the moment it is confined to the Cara variety.
I hope I have been helpful to the Deputies. I have no objection to having a chat about the matter with them at any time.
Would the Minister be prepared to meet a deputation from the Donegal seed growers?
I would be delighted to meet such a deputation. Perhaps I could arrange this with the Deputy early next week.
The Dáil adjourned at 5.25 p.m. until 2.30 p.m. on Tuesday, 1 March 1983.