asked the Minister for Agriculture and Food if, in the interest of his stated policy of encouraging an increase in pig production in the country, he will introduce a scheme of low interest rates for small pig producers and farmers starting pig production for the first time; if his attention has been drawn to the fact that the small margin of profit available to pig producers at present could not sustain the present rate of interest being charged by the lending institutions; and if he will make a statement on the matter.
Written Answers - Pig Production.
30.
In July 1987, I announced a major programme for the development of the pigmeat industry. The programme involves the establishment of up to eight modern efficient slaughtering plants, strategically located throughout the country, which will be capable of catering for their own needs and those of adjacent processing facilities. The plants, some of which are already in operation, will meet the highest EC and USDA standards and should enable the pigmeat sector to compete on comparable terms with those in the major producing countries.
Pig slaughtering and processing projects selected for development under the programme are eligible for grant assistance, from the State and FEOGA, of up to 75 per cent of the cost. Already, State investment of about £12 million and a similar amount from FEOGA have been committed to the programme. In return each plant is required to encourage increased pig output in its catchment area with a view to ensuring a minimum weekly throughput of 6,000 pigs. Payment of grant assistance is dependent on the adoption of a pig development programme to ensure the provision of additional pig numbers.
Already a number of the slaughtering and processing plants have introduced pig expansion programmes which provide a package of incentives for farmers to increase pig output. The incentives include interest subsidies, guaranteed price arrangements, contract buying and improved information/advisory services. This should ensure that the benefits of the State and FEOGA resources now being channelled to the industry filter through to the primary pig producer thus encouraging an increase in numbers and providing the basis for more profitable producer returns in the future.