Vol. 512 No. 5
46 Mr. Ferris asked the Minister for Agriculture, Food and Rural Development his Department's assessment in relation to the short to medium term prospects for sheep producers; and if he will make a statement on the matter. [26456/99]
I am aware of the difficulties being experienced by sheep producers at present. However, there has been a firmer trade in recent weeks during which prices have increase significantly, with the result that prices are now approximately 20% higher than the same time last year. This firmer market should be sustained by strengthening demand in the run-up to Christmas. Beyond that there are reasonable grounds for believing that market conditions in 2000 should be somewhat better than in 1999. While the sheepmeat market balance in the EU is expected to remain unchanged in 2000, the lower sheep numbers in this country and the elimination of intervention beef stocks should result in an increase in prices for red meat generally, including sheepmeat. A recovery in the Russian market for lambskins would also contribute to stronger lamb prices generally.
Looking further ahead I believe that, while it will continue to face challenges, the Irish sheepmeat industry has many advantages, particularly in its low cost production system and natural methods of production. There is much that can be achieved in partnership to improve the future prospects of the sector. To this end I established the sheepmeat forum to evaluate the future of the sheepmeat sector and to assess how the industry can best address the constraints and future challenges facing it. The forum, which was chaired by my Department and included members from all interests connected to the sheep sector, identified a wide range of issues on all areas of the sector and agreed a comprehensive series of recommendations which, if implemented, will enable the industry to prepare for the challenges ahead. I am anxious to ensure that these recommendations are implemented as soon as possible and for that reason I have set up a monitoring committee, chaired by Dr. Frank Crosby of UCD, to progress implementations of those recommendations in the area of efficiency and quality of production and the promotion and marketing of lamb. The committee, which is representative of the various interests in the industry, will work closely with my Department. The EU regime will, of course, have an important bearing on the future prospects of the sheep sector. I accept that the EU sheepmeat regime contains many deficiencies from the point of view of Irish sheep producers and I am committed to continue to seek adjustments to that regime to ensure it better reflects the needs of the Irish sheep sector.
