Dáil Éireann debate -
Tuesday, 2 Nov 1999

Vol. 509 No. 6

Written Answers. - Pig Producers.

Paul Connaughton

Question:

242 Mr. Connaughton asked the Minister for Agriculture, Food and Rural Development the plans, if any, he has to improve the lot of pig farmers; the number of pig farmers who have gone out of business over the past 18 months; and if he will make a statement on the matter. [21481/99]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

Pig producers in Ireland and throughout the EU have experienced difficulties in the past year or so mainly due to overproduction following a classical swine fever outbreak in Europe. Other contributory factors were the underperformance of traditional pigmeat markets in Japan and Russia. All of these events combined, led to lower prices for pig producers.

Despite the difficulties in pig production, information available to my Department indicates that only a very small number of pig farmers have actually gone out of business. These were in the category of less than 100 sows.

To alleviate the difficulties being experienced by Irish pig producers, I took a number of important initiatives. Together with my colleagues in the Council of Agriculture Ministers, I sought and obtained generous increases in export refunds from the EU Commission on a number of occasions in 1998 and in 1999, and the introduction of an aids to private storage scheme for pigmeat. This scheme, which recently concluded, removed over 420,000 tonnes of pigmeat from the EU market. The Commisssion also introduced a food aid programme for Russia which included 100,000 tonnes of pigmeat. To date 50,000 tonnes of pigmeat have been exported from the EU under the programme to Russia.

While the above measures have improved market prices since the beginning of this year, there is still a need for further improvement. In that regard, last week I wrote to the EU Commission urgently seeking the restoration of high refund rates to Russia and the speedy conclusion of the food aid programme. I also requested the Commission to introduce proposals for long-term measures to assist the pigmeat sector, such as supply control, something which the Commission was asked by Council to do.

Recently, a meeting was held between my Department and the major pig processors to discuss the market situation. The processors were urged to do everything possible to improve the prices currently being paid to their producers. My Department has also met with representatives from Enterprise Ireland and has asked them to examine the issue of slaughtering capacity and whether there were other aspects of the industry requiring attention and possible investment. An Bord Bia recently launched the autumn campaign of its quality assured bacon scheme. This will no doubt lead to an increase in consumption and thus help market prices to rise.

The outlook for the pigmeat market is good. The EU Commission is forecasting a drop in supplies in the last quarter of this year, and this coupled with increased demand for the Christmas period should help to give pig producers a much needed boost in prices. I will continue to use every means at my disposal to ensure that everything possible is done at EU level to bring this about in a way which improves the situation for pig producers.