andMrs. Doyle asked the Minister for Agriculture and Food if his attention has been drawn to the very low levels of profitability for pig producers at present; and the proposals, if any, he has to provide either (a) cheaper loan finance or (b) renovation or capital grants for housing purposes to the sector.
Written Answers. - Pig Producer Profitability.
116.
I am aware that the poor levels of profitability experienced by pig producers for a great part of 1986 continued into the early months of this year. Since then, however, profitability has improved and, while the very firm market which existed in mid-year may have abated somewhat, profitability levels for efficiently run units are nonetheless considered to be reasonable at present.
National aids for pig production are strictly prohibited in the context of the EC common organisation of the market for pigmeat. While there is no special loan finance arrangement for pig producers they are, nevertheless, able to benefit from the substantially reduced interest rates now available as a result of the Government's economic policy.
Under the farm improvement programme grants, within the limits laid down by the EC, are available to approved applicants for the construction of pig housing and for the conversion of existing suitable structures for use as pig housing.
The pigmeat processing industry is presently undergoing a major phase of re-organisation and modernisation, with significant investment of national and FEOGA funds totalling £140 million over a five year period. This restructuring, allied to a greater emphasis on production and marketing of a quality product, should reflect itself in improved producer profitability.