asked the Minister for Agriculture his proposals for the restructuring and modernisation of the Irish bacon industry; if he will make a statement on the present slaughter capacity; and if he will give details of the capacity of each plant, especially the number of plants which have capacity to kill in excess of 5,000 per week.
Ceisteann—Questions. Oral Answers. - Bacon Industry.
10.
While our pigmeat export factories have an annual capacity of about 2½ million pigs, they are currently operating at around 70 per cent of this capacity. Details of individual plant capacity are confidential but I can say that only three plants have a capacity in excess of 5,000 pigs per week.
It is clear that there is a need for rationalisation and modernisation within the industry if it is to compete more effectively, particularly on export markets. For this reason a central pig slaughtering policy has been adopted under which it is intended to have at least six central slaughtering units, and maybe as many as ten, each capable of slaughtering 6,000 pigs per week, to cater for its own needs and, on a contract basis, for the needs of neighbouring processors. Generous grant aid is available from the IDA and FEOGA to suitable applicants who wish to participate in this programme. As well as reducing slaughtering costs and facilitating greater concentration of value-added processing, these central units will meet the standards of the US and other countries, thereby enabling traders to gain access to those export markets closed to them at present.
Has the Minister any suggestion to make about the geographical position in which he recommends that those units should be sited? Is he going to allow a similar position to that which happened in the dairy industry when we had milk travelling all over the country? Now we see pigs travelling from Wexford to Tralee, in County Kerry. That is not in the interest of the industry.
The IDA in conjunction with my Department — primarily the IDA — are promoting this new concept that we should have at least six and maybe ten large pig slaughtering units, and of course they are taking geographical locations into consideration. I am glad to say that there are three or four firm inquiries — indeed, more than inquiries — three or four groups or individuals interested in the IDA's proposal and I hope to see at least two of those commence in 1986.
In this modernisation scheme to which the Minister has referred, would he like to tell the House if the Claremorris bacon factory is one of the units which came under consideration for this, or had he an opportunity of interesting himself in what is happening there in relation to the imminent closure of the factory? If not, will he take steps to ensure that this factory is kept open in the interests of the farmers and the workers of the area?
I cannot give confidential information as to which groups are interested but I believe steps are afoot to try to resolve the problem that exists. I would not like to upset any moves being made by making any comment here today, but I am hopeful. I would be very concerned if the project did not continue.
The Minister said that five to six units would service the country. It is very important that the geographical location of those units would cater for the pigs so that we would not have trafficking at high transport costs. As it stands it seems as if they will all be in the one area.
Has the Deputy a question?
As it stands at the minute——
I do not think he has.
Would the Minister use his good offices and the offices of his Department to advise? It is right to say that we are trying to model our bacon industry on the Danish industry.
That is not a question.
It is very relevant.
Maybe it is a grand speech. I will not go into the merits or otherwise of that.
A different pattern of units for a heavy concentration of pigs in an island country would be desirable.
The Minister should have a good look at the situation because it seems that we are going into very serious difficulties, similar to what the dairy industry went into six or seven years ago in the amalgamation.
I said six units and maybe as many as ten, not five or six. I think the geographical spread will be quite satisfactory. The interests I am aware of who are thinking seriously about setting up these units are spread rather uniformly throughout the country so I am not worried about that aspect.