Dáil Éireann debate -
Thursday, 15 Feb 2001

Vol. 530 No. 5

Written Answers. - Organic Farming.

Emmet Stagg

Question:

34 Mr. Stagg asked the Minister for Agriculture, Food and Rural Development the steps being undertaken in his Department to increase the level of organic production, in view of a growing niche market for organic produce; if he has any targets for the level of organic production; and if he will make a statement on the matter. [4230/01]

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

I am conscious that the market for organic food, though it is still quite small, is one of the fastest growing segments of the European food market. In Ireland, the statistics show that the demand for organic produce outstrips supply and we rely heavily on imported produce. My Department, and the bodies under my Department's aegis, is conscious of the need to develop the sector in Ireland.

In March 2000, the report of the Agri-food 2010 committee identified the organic sector as an area with potential. It recommended that an organic development committee be established to draw up a coherent strategy for the development of the organic sector.

I accepted that recommendation and I gave the committee the following terms of reference: to recommend a coherent development strategy to achieve expansion in production, processing and marketing of Irish organic produce and to secure an increased share of the growing national and export markets; and to consider the broad actions necessary for the most advantageous long-term future development of the Irish organic sector while protecting its integrity.

The committee has representatives of the widest interests in the organic sector including those involved in production, marketing and distribution as well as in areas of research, training, advice and regulation. The farming organisations are represented on it, as are the Consumers Association and the Food Safety Authority.

The organic development committee met in November 2000 and again in January. Three sub-groups are also considering a number of specific issues. Interested parties who are not represented on the committee were invited to make submissions to it so that it can take account of the widest possible range of views. I have asked the committee to make its recommendations to me by the end of April 2001.

My Department is also providing financial supports for the organic sector through the national development plan and through the rural environment protection scheme. Under the national development plan, £6 million has been allocated for the development of the organic sector under the regional programmes for the Border, midland and western region and the south and east region. This funding will be used to provide grant assistance for both on-farm and off-farm investment in equipment and facilities for preparation, grading, packing, storage and distribution. I expect that details of grants available under the regional operational programmes will be available shortly.

The rural environmental protection scheme already provides strong support to the organic sector by way of direct grants to farmers. Under the previous REP scheme, organic farmers have received some £17 million on top of their basic REPS payments. The new REP scheme, which was introduced in November 2000, includes the same provisions and I am confident that payments to organic farmers will considerably surpass the £17 million that they have already received. Under these provisions an organic farmer can receive up to £5,702 a year on top of his or her basic REPS payment of up to £4,757 while a holding is in conversion to full organic status, and up to £2,867 extra thereafter.

My Department continues to liase with Bord Bia and Bord Glas in developing the market potential of the organic sector. Bord Bia, which carries out ongoing work in relation to surveying, investigating and developing markets and potential markets for food, believes that the Irish organic sector has the potential to become a significant niche within the overall food market. Substantial work is also being done by Teagasc to support the development of the organic sector through research projects, education and training.

While no specific targets have been set for the production of organic food, all the indications are that demand will continue to grow. I am confident that the continuing supports available through the REPS, the funding available under the national development plan and the work being done by Bord Glas, Bord Bia and Teagasc provide a solid platform for the development of the organic sector. At this stage I shall await the findings of the organic development committee before considering further steps to develop the sector.