Vol. 524 No. 6
93 Mr. J. O'Keeffe asked the Minister for Agriculture, Food and Rural Development his views on whether the demand for organic food is increasing; if there is adequate financial support to encourage the development of the organic sector; and if his attention has been drawn to the criticism of current proposals on the organisation and development of the sector. [23277/00]
Organic food is one of the fastest growing segments of the European food market, albeit from a small base. The principal factors driving the growth of organic foods are consumer concerns about health and safety, animal welfare and other environmental considerations. Irish consumers are driven by similar concerns and producers are reacting to these concerns with a view to supplying the demand that now exists for organic produce.
To date the organic market in Ireland has been relatively limited, but the retail chains are showing greater interest and this is expected to lead to an expansion in the market. Organic production has grown, with around 1,000 registered producers and some 30,000 hectares in organic production or conversion in 1999.
The total market for organic foods in Ireland is estimated to range between £20 million and £25 million or less than 1% of the total retail food market. Major opportunities now exist for Irish organic producers to significantly increase market share, both on domestic and export markets. It is anticipated that the quantity of organic food produced in Ireland will continue to grow.
I am committed to the development of the organic sector with substantial funding being made available in the national development plan to ensure continued support for organic farming. Some £1.6 billion earmarked for the new REP scheme in the period to 2006 will enable up to 70,000 farmers to participate. The facility to undertake Supplementary Measure 6 on organic farming for such a large number of farms could have a significant impact on the growth of the organic sector. The national development plan also includes funding of £6 million for the development of the organic sector under the regional programmes for the Border, midland and western region and the south and east region.
I am aware of concerns raised in relation to the livestock standards to apply in Ireland and my Department's proposal to streamline the inspection system. Standards for organic crop produce had been fixed since 1991 by EU Regulation 2092/91. When Regulation 1804/99 covering the livestock sector was introduced on 24 August, my Department had proposed to adopt standards for such produce in accordance with the regulation. Following further discussions on the issue with interested parties, including the three private organic bodies and other stakeholders in the organic sector, my Department has moved significantly to address a number of points of concern in relation to the origin of animals and the minimum conversion period. Other issues may be considered subsequently by the Organic Development Committee.
I am confident the standards now being set for the organic sector will provide every reassurance to retailers and consumers as to the quality and integrity of Irish organic produce, without compromising the competitiveness of Irish organic producers. My objective is to ensure the continuing growth of the organic sector as part of mainstream farming in Ireland.
The AgriFood 2010 report recommended that a credible regulatory system be put in place for the organic sector and that the existing confusion between competing inspection bodies be ended. In response I undertook to streamline the inspection arrangements. My objective is to ensure all organic farmers and processors have ready access to the most efficient, transparent and consistent arrangements for inspection and certification. My Department has recently put proposals to the three private bodies for a unified inspection and certification system which will achieve this objective while allowing the three bodies to continue to operate their own private arrangements where their own members are concerned as heretofore. I understand the three bodies are considering these proposals and I hope to receive a positive response.
Does the Minister of State accept that the Government made a disastrous mistake in adopting the lowest organic standards in Europe? Will he confirm that Ireland is the only European country to adopt and implement the EU minimum standard which is based on Regulation 2092/91 as amended by Regulation 1804/99 and operational from 24 August? Does he accept that in doing so we are effectively closing the door for Irish organic exports to EU countries which will be operating to a higher standard, in particular the United Kingdom?
This is not the only country to adopt this standard.
Minimum standard.
This is the minimum organic standard agreed after ten years of discussion in the European Union on the issue.
We are implementing the minimum level.
It is the right of any individual to apply this standard in Ireland, but I understand from individuals with knowledge of the organic sector that retail outlets will not apply it. We are allowing the three inspection bodies to operate a unified inspection system under which they will apply the minimum standard while continuing to operate their own arrangements in order to ensure there is one organic logo for the entire country. Only 6% of people recognise any of the three existing standards. This is an opportunity for the organic movement to move ahead and promote the sector in a much more dedicated marketing system.
What market research has been undertaken in relation to the demand for organic food? What is the projected market research for the next five years? What funding has been set aside for that and who has been commissioned to undertake it? What kind of research is being done on aspects such as soil quality, pest management and the other scientific factors that would impact on the quality and safety of organic food?
Those are specific questions that are not related to this issue. A sum of £1.6 billion has been allocated to the REP scheme, which will include some organic materials. A further £6 million has been allocated to the promotion of the organic system. We are prepared to fund a facilitator within the system to bring the three bodies together to agree on one system because of difficulties in the past when they disagreed. They all have different standards. Now that they have a plan agreed we are anxious that on 1 November they will come together with the facilitator we are prepared to pay for to operate the scheme. This would help their own organisations and make it cheaper for them to have an inspection done.
Does the Minister of State accept that a disastrous mistake has been made? He is working on the basis of the findings of the agri-food committee, none of whose members is an organic farmer, led by Pat O'Neill of Avonmore-Glanbia. We know what happened there.
Would the Minister of State not accept that the obvious way forward is to establish an organic development committee, to allow it to work out what is best for the future development of the organic sector, to defer changes until the committee has produced its findings and then to take action? Will he not be big enough to recognise – I believe he may be – that this disastrous mistake may do irreparable damage to the future of the country and that it is time to go back to first base, establish an organic development committee, await its findings and then proceed in a direction that is properly researched?
I am surprised that Deputy Jim O'Keeffe should say the report of the agri-food committee should be thrown out because he alleges there are no experts on the committee.
No organic food experts.
People in the food business are always experts in their own area. The bodies asked to join the organic development committee include the organic body Demeter Standards Limited, the Irish Organic Farmers and Growers Association, Organic Trust, the IFA, the ICMSA and Macra na Feirme – perhaps it should not be on the committee.
I am all for that.
The Deputy appears to be suggesting that nobody who is not directly involved in organic produce should be on the committee.
I ask the Minister of State to conclude his remarks. We have gone over the six minutes allocated to this.
Other bodies asked to join the committee include the Consumers' Association of Ireland, Enterprise Ireland, the Food Safety Authority of Ireland, Glanbia, IBEC, ICOS, the Irish Dairy Board, the ISME, RGDATA and SFADCo.
Let us have its report.
Not all of them are exclusively concerned with organic produce but they have expertise in their areas.
The Minister of State should defer changes until a report is produced.
The bodies referred to by the Minister of State should not be on the committee. He is allowed to consult with them in any event.
