asked the Minister for Agriculture the steps he is taking to ensure that pork exporters benefit from the favourable trading conditions pertaining at present in the United States.
7.
Ceisteanna - Questions. Oral Answers. - Pigmeat Exporters.
6.
asked the Minister for Agriculture if he is aware that exporters of pigmeat are unable to gain entry to the USA market because the standard of slaughtering and processing premises here will not allow them to get a licence.
I propose to take Questions Nos. 6 and 7 together.
Plants engaging in the export of pigmeat to the United States must be approved as meeting the veterinary requirements laid down by the United States Department of Agriculture. It is a matter of regret that at present none of the pigmeat plants here is approved for the US and so able to take advantage of the favourable conditions for trading with that market, especially having regard to the current value of the dollar. Veterinary officials from my Department are ready to give information and advice about the standards required to have premises approved. Generous grants are available from the IDA and FEOGA for modernisation measures provided certain conditions are met and assistance is also available from CTT for market research and development purposes.
Would the Minister not agree that at a time when the pig industry is in such a serious situation, when many of the markets abroad have dried up, it is regrettable that the people involved here, with the aid of the various grants were not in a position to take advantage of the lucrative US market, particularly now that the dollar is so strong? The only reason for this is that the hygiene levels and so on are not adequate to comply with US requirements.
I agree totally with the Deputy. The reason for the rush of blood to the head now is the favourable exchange rate but matters cannot be rectified overnight. From discussions I have had with various people in the trade, I am aware that a number of people are endeavouring urgently to update their plants in order to meet the US requirements and that is a very desirable development.
I am glad the Minister recognises the potential in this area but is there not a problem in regard to the level of grant aid in that there is not sufficient incentive for the plants to modernise? Consequently, would it not be of benefit to the economy that the Government make more money available so as to ensure that the plants are updated immediately.
I do not think that is the problem. So far as I am aware, the level of grants available for new pig slaughtering plants is as high as 50 per cent, taking the IDA and the FEOGA grants together. If that level of grant is not high enough, the outlook for the enterprise of our businessmen is very poor.
Having regard to the difficulty that exists for cereal growers and to the restriction of the potential market for pigmeat, even if the grant aid is sufficient, should a task force not be set up within the Department and involving those engaged directly in the pig industry with the intention of having the matter rectified as quickly as possible? By and large most pigmeat produced here is sold on the home market but there is much potential for the development of foreign markets.
It is not that I have not been meeting the people involved. I have had a number of discussions with the interested groups within the pig industry and these discussions have been on the lines outlined by the Deputy. One processor who lives not 1 million miles either from Deputy Kirk's constituency or from Deputy Leonard's constituency is competing in what is perhaps the most competitive market in the world and he is being extremely successful. He is able to export almost everything he produces. If others in the business emulated this processor we would not have the type of problem to which the Deputies are referring.
In view of the appalling admission that none of our slaughtering and processing plants can come up to the American standards, is it a question of lack of hygiene or can the dirty Irish produce meat that will meet the requirements of the US market? Surely the Department regulations should be enforced rigorously to ensure that we can produce meat at least up to the standard required by the US.
That is our intention. It is what we are aiming for. In conjunction with the IDA we intend having a number of centralised slaughter units accompanied by processing facilities. This is long overdue. Such units should have been provided years ago. I am very much aware of the present totally unsatisfactory position. I agree with what the Deputies are saying but some people have succeeded and there is no reason for the others not succeeding also. Our plants are hopelessly out of date. They are antiquated and not suitable for present day needs but a number of people are making a genuine effort to modernise and improve their plants.
Will the Minister not agree that those plants that were grant-aided in recent years should have been capable of reaching the required standards for the American market?
Yes, but our producers did not consider that market then because the exchange rate was not nearly as lucrative as it is now. When the exchange rate is so attractive the processors take a different point of view and some of them are working towards meeting the required US standards.
Is pig production not linked to the agricultural economy to a greater extent than any other area of activity? If the pig industry collapses there will not be the same demand for feed and this obviously has a bearing on the production of grain. The co-ops depend to a large extent on pig feeders for whey, buttermilk, skim and so on. Therefore, a decline in the pig industry would have a devastating effect on the economy generally.
I agree totally. The pig industry is perhaps the area of greatest potential for expansion and improvement because of the potential of good foreign markets. The Dutch and the Danes are capitalising on the American market and on the Japanese market also and we should be doing likewise.
(Limerick West): The Minister is aware, of course, that we have some of the best pig producers in Europe, if not in the world, but they are falling down greatly in the marketing and processing of our product. From what we have heard today from the Minister, I doubt if there is any motivation within his Department to alleviate that problem. In the booklet issued with the Government's plan, Building on Reality, there is no word at all about pigmeat.
That is a speech, Deputy.
(Limerick West): No, it is not a speech. Would the Minister not agree that there is no motivation on the part of him or the Government to help pig producers in this crisis? Would he agree that the crisis is in the processing and marketing aspect and is due to the lack of motivation?
I completely disagree with the Deputy. The motivation is there in the form of the markets which are available abroad and the level of the grant available at home to conform with supplying those markets. There are 50 per cent grants. What more can anyone ask for?
What action does the Minister propose to take to curtail slaughtering of pigs in unlicensed slaughter houses?
There is a question on that matter on the Order Paper and I shall be coming to it at a later stage.
As one of my final supplementary questions to the Minister, in view of the fact that he stated in the Dáil today that there is an undoubted potential, with which I agree, for the development of the pig industry and the number of jobs which can be created upstream and downstream and having regard to the position which cereal growers find themselves in at present, would he agree that there is a need, between his Department and the people involved in the processing, marketing and primary production of pigs, to have a co-ordinating approach towards this problem? Would he not agree that the problem should be dealt with speedily and a special task force set up to examine all those agencies to see if this problem can be overcome and entry gained into the USA market?
I fully agree with the Deputy. I have been talking to people and bringing them together with that very objective in mind.