Bernard J. Durkan
Question:239 Mr. Durkan asked the Minister for Agriculture and Food the plans, if any, he has for the expansion of the bacon industry with particular reference to exports; and if he will make a statement on the matter. [18783/98]
Written Answers. - Bacon Industry.
The pigmeat industry is very important for the economy, with output valued at about £260 million in 1997, and its further development is a priority. While the State can encourage investment decisions, ultimately such decisions are for the industry itself.
Over the past decade or so the processing side of the industry has undergone considerable change and expansion. Large scale investment in rationalisation and modernisation, supplemented by EU and Exchequer grant aid, has taken place. The latest investment came about last May when I announced details of EU and national support for five projects in the pigmeat sector. The total investment will be £24.5 million and will create 266 jobs. All involved significant progress towards increased added-value and better market returns for pigmeat.
The pigmeat export market is experiencing difficulties at present due to international oversupply and weakness of market outlets. I have taken action on this by seeking export refund increases and the reintroduction of EU funded private storage. These have been granted and should be of benefit to exporters of pigmeat. As regards the longer term, I have set up a strategy group for the pig industry to examine all aspects of the Irish pig industry in the context of domestic, EU and international developments. All sides of the industry are represented on the group and the combined expertise will be channelled into drawing up a strategy for the future development and prosperity of the industry.