Bernard J. Durkan
Question:106 Mr. Durkan asked the Minister for Agriculture and Food his proposals to enhance the prospects for beef, lamb, dairy and cereal producers; and if he will make a statement on the matter. [9414/03]
Written Answers - Agriculture Industry.
Measures to facilitate the development of the meat sector are set out in the agri-food plan of action. The strategy for the development of the beef and lamb sectors aims to ensure that they achieve their full potential, thereby maximising their contribution to the national economy. Action will be taken on a range of fronts to address competitiveness at production and processing levels and to adopt a comprehensive strategic marketing focus. The main marketing focus for beef involves moving up the value chain at EU level, through increased penetration at retail level in the UK, increasing exports to other core continental markets, targeting growth in European developing markets and developing niche opportunities. An important element of the marketing strategy is to broaden the spread of third country markets.
In the context of broadening markets, improve ment in the quality of cattle will be encouraged through the introduction by the processing industry of appropriate price differentials to reward producers for quality production. My Department will progress the introduction of mechanical classification in order to facilitate the introduction of a differentiated pricing structure. Better breeding will also be encouraged through the activities of the Irish Cattle Breeding Federation and Teagasc. At the processing stage, increased production of value-added products and efficiencies and modernisation of the processing structures can only be to the long-term benefit of primary producers.
A revision of the sheepmeat regime has seen the introduction of a fixed-rate premium, which has helped to underpin returns to producers. Better breeding practices have resulted in an improvement in the quality of sheep production. The national sheep identification and tracing system provides a modern and comprehensive traceability system for the sector. These developments will underpin producer returns and broaden market opportunities. An Bord Bia, which has primary responsibility for the promotion of beef and lamb, continues to assist the industry in its efforts to seek new markets and maximise returns from existing markets.
In the case of the cereals sector, my Department operates a range of services aimed at improving the efficiency, quality and viability of cereal production, including the seed certification, seed testing, the recommended lists of varieties, etc. This is apart from the advisory, training, research and development services provided by Teagasc. All these services provide a valuable contribution to the improvement of efficiency and competitiveness and have ensured that Irish cereal producers have consistently achieved some of the highest yields in the world. An important part of cereal producers' incomes is represented by the EU arable aid payments. My Department continually strives to ensure that these payments are issued promptly and over 90% of them are issued within one week of the commencement date for payment date laid down in EU regulations. In 2002, in recognition of the difficulties experienced by cereal producers due to the persistent wet weather conditions, I secured EU approval to pay 50% of these payments in advance.
In order to improve the quality and safety of grain and to relieve pressure at commercial intake points at harvest time, I made provision under the national development plan for grants for the development of grain storage on farms. These are just some examples which demonstrate the commitment which my Department has and will continue to have to the development of the cereals sector.
At production level, the many changes I have introduced to the milk quota regime have been extremely successful in achieving my overall objective of putting milk quota definitively in the hands of active producers at the lowest possible cost. Due largely to these changes, in the last three years about 460 million litres, 105 million gallons, of quota have been redistributed under milk quota restructuring schemes. In addition to improving access to quota, I also addressed the issue of cost and the need to allow all producers the opportunity to develop their businesses. The maximum price of milk quota has been reduced by almost 30% since 1999 and is now at a level that is attractive to those considering leaving production and affordable and economically viable for those who wish to expand. In combination with a lower price, it has been possible to significantly reduce the real cost of restructured quota to producers by the introduction, through the agreement by the Minister for Finance, Deputy McCreevy, on tax concessions on the purchase of quota.
The benefits of this policy are evident in the industry's structure. I intend to continue it to further improve that structure and to allow the industry to remain competitive. This year, I have added another initiative to the restructuring scheme to allow a young farmer who is farming on the same holding as a parent in a partnership arrangement to be eligible to apply for quota under the priority category that exists for new entrants. I commissioned a study of the processing sector in conjunction with Enterprise Ireland and the industry. The objectives of the study were to examine the existing structure of the Irish dairy processing sector; identify market opportunities for dairy products; assess product options to exploit those opportunities and make recommendations on actions to improve the efficiency and long-term competitiveness of the industry. The study was presented on 19 March and its findings have been positively received. The report highlights the need for the industry to transform itself and deliver on key strategies. It makes extensive recommendations as to the best course of action available to the industry and it quantifies the benefits and costs of doing so. While much of the action to be taken will be for the industry itself, my Department and I will do what is necessary to assist in driving forward the recommendations of the report.
Bernard J. Durkan
Question:107 Mr. Durkan asked the Minister for Agriculture and Food the short, medium and long-term prospects for Irish agriculture; and if he will make a statement on the matter. [9415/03]
Bernard J. Durkan
Question:109 Mr. Durkan asked the Minister for Agriculture and Food if he is satisfied with the prospects for Irish agriculture in the future; and if he will make a statement on the matter. [9417/03]
I propose to take Questions Nos. 107 and 109 together.
Arising from my concerns about the medium and long-term future of the agri-food sector, I formed the Agri Food 2010 committee to report on how best the sector can adapt to the changes brought about by the Agenda 2000 agreement, taking into account all relevant factors. Subsequently, I published the Agri-Food 2010 plan of action, to address the issues raised in the agri-food committee's report and to bring about the visions set forth in it. The plan of action and the Department's statement of strategy, 2001-04, contain a commitment to regularly monitor the implementation of the plan. The most immediate concerns are the mid-term review of the CAP and the current round of WTO talks, which will have a major bearing on Irish agriculture in the decade ahead.
The main proposals of the mid-term review are for the decoupling of direct payments, reducing direct payments above a €5,000 threshold to fund rural developments, modulation, and funding future CAP financing need, degression, changes to certain commodity sectors and enhanced rural development measures. The WTO negotiations cover market access, domestic supports and export support. Both sets of negotiations are closely inter-related. I have indicated my overall opposition to the Commission's proposals in Council. I have also strongly opposed the WTO proposals on modalities in the WTO negotiations, which would involve substantial cuts in the levels of domestic supports and export refunds while increasing access to the EU market for third country exporters. My objective in both sets of negotiations will be to preserve the benefits to Irish agriculture and to rural communities achieved under the Agenda 2000 agreement.