Written Answers. - Pigmeat Sector.
Dan Neville
Question:
100
Mr. Neville
asked the
Minister for Agriculture, Food and Rural Development
if his attention has been drawn to the fact that there was a substantial drop in pig prices on 9 October 1999; the proposals, if any, he has to alleviate the extreme difficulties for pig farmers; and if he will make a statement on the importation of pork and bacon products.
[20902/99]
The pigmeat market has been going through a difficult period for some time now, not alone in the EU but worldwide. While the Irish pigmeat market has improved greatly since the beginning of this year it is clear that there is room for further improvement.
Over the past year or so overproduction in the pig sector was the chief cause of the drop in market prices. The over-production followed a classical swine fever outbreak in Europe. Other factors which contributed to the difficulties were the under-performance of traditional markets in Japan and Russia. All combined to further exacerbate the normal market cycle of pigs in the EU. In Ireland, we had an added problem of a fire at a pigmeat plant in Northern Ireland which created a backlog of pigs awaiting slaughter for some farmers in the border regions. However, I took swift action to ensure that this backlog was dealt with quickly.
On the broader front I along with my colleagues in the Council of Agriculture Ministers pressed the EU Commission to take action to assist the difficult pigmeat market. As a result generous increases in export refunds were given; an aid to private storage scheme was introduced. This scheme removed over 420,000 tonnes of pigmeat from the EU market, which was placed in storage; and, a food aid programme for Russia, which included 100,000 tonnes of pigmeat, was also put into operation. To date about 50,000 tonnes of pigmeat have been sent to Russia.
The result of all this action is that pig prices have increased since the beginning of the year. The EU Commission has indicated that pig supplies in the last quarter of 1999 are expected to decrease. This means that market prices should improve further. I will however continue to press the EU Commission to ensure that the maximum level of aid is given in order to restore better balance to the pigmeat market and give reasonable returns to all involved.
With regard to imports of pigmeat into Ireland, of the total of 35,000 tonnes imported in 1998, 34,500 came from other member states. This means that 98 per cent of total pigmeat imports came from intra-Community trade, and under the EU rules of the common market, this trade must be allowed to proceed unhindered. Only 2 per cent of imports come from third countries, which represents 0.2 per cent of total pigmeat production in Ireland.
I would, of course, like to see more consumption of domestically produced pigmeat on the home market. The high quality of that product is undisputed. In order to stimulate increased consumption of Irish pigmeat at home, this week An Bord Bia launched a quality assured bacon campaign to encourage sales. The campaign is scheduled to last about three weeks and I am confident that it will play its part in increasing the consumption of home-produced pigmeat.
