James Leonard
Question:216 Mr. Leonard asked the Minister for Agriculture, Food and Forestry the proposals, if any, he has regarding the crisis in the pig industry which is having a serious effect on employment in pig-processing plants. [5120/96]
Written Answers. - Pig Industry Crisis.
Brendan Smith
Question:217 Mr. B. Smith asked the Minister for Agriculture, Food and Forestry the measures, if any, he will take to alleviate the current difficulties facing pig processing plants in obtaining pig supplies; if his attention has been drawn to the serious loss of jobs at McCarron and Company, Bacon Curers, Cavan; the measures, if any, he will take to protect employment in pig processing plants; and if he will make a statement on the matter. [5410/96]
I propose to take Questions Nos. 216 and 217 together.
I am aware that difficulties are being experienced at present in the pig industry, particularly by slaughtering plants in the Border regions in obtaining supplies of pigs. These difficulties have unfortunately caused the temporary closure of McCarron's in Cavan last week. My Department has been in touch with Forbairt, and has been informed that detailed discussions are ongoing with this company to see how the problems can be addressed.
The current difficulties are due to a number of factors. The pig industry is by its nature cyclical but pig numbers are now on the increase as is shown by the December 1995 CSO Livestock Survey. This shows that pig numbers rose from 1.498 million head in December 1994 to 1.542 million head at the end of December 1995. However, it will take some months before the increased number of pigs comes through to slaughter stage and supplies should improve in the latter part of this year.
Another factor in the pig supply situation has been the recent arrival in Northern Ireland of a major pigmeat processing firm which is sourcing some of its supplies south of the Border. Slaughterings in Northern Ireland for the first seven weeks of 1996 are some 4.0 per cent up on slaughterings for the same period in 1995 while the corresponding figure for slaughterings in the South is down by 4.4 per cent. Processors in Northern Ireland are paying higher prices for the raw material than processors in the South, and naturally producers of pigs will sell at the highest price.
Under the Single Market rules of the EU it is not possible for me to stop the movement of pigs northwards across the Border. Member states are also precluded under the common organisation of the market in pigmeat from giving direct national aids. Therefore, I cannot intervene directly in this matter. In the past week or so pig prices have started to ease slightly. The outlook for the industry is good and, as indicated, supplies are expected to become more plentiful in the latter part of the year.