Vol. 567 No. 3
3 Mr. J. Breen asked the Minister for Agriculture and Food the actions he intends taking in view of the crisis in the agriculture industry, the poor prices obtaining in the factories for cattle and the ongoing strikes in various parts of the country; and if he will make a statement on the matter. [14071/03]
Last year was a difficult one for farming and it followed a number of relatively favourable years. Teagasc estimated that farm family income increased by 43% between 1999 and 2001.
The vision and long-term strategy for the development of the agriculture and food sector is set down in the Agri-Food 2010 Plan of Action. The current challenges confronting the sector were comprehensively addressed in the partnership agreement recently concluded with the social partners. The agriculture element of the partnership document is valued in excess of €300 million over the three year lifespan of the programme and it could be greater depending on the take-up on the agri-environment schemes. The document sets out agreed objectives with regard to agriculture, negotiating positions with regard to CAP reform and the WTO and commitments on the development of the beef, dairy and food sectors. There are significant provisions concerning the implementation of the nitrates directive and improvements to the REP, farm waste management and dairy hygiene schemes. There are reviews of the special areas of conservation and forestry schemes. The animal health provisions seek to reduce levels of TB, brucellosis and BSE in the national herd.
Does the Minister agree that farm incomes dropped by 8% in 2002? What other sector would put up with that? The poor quality of soil in 2002, coupled with the weather this year, makes one wonder if circumstances will be the same this year. I hope this will not happen. If it does, has the Minister plans to address the problem?
I am thankful that there is an increase in cattle prices this week, which have been bad. When the sheds were full with cattle for the past two months there was no indication that the Government had intended to do anything about it. The strike in the agricultural offices is causing hardship for farmers. The Minister said he regrets the strike but that is no good to a farmer depending on headage payments and premium payments, who has a big family and needs money for children going to school. It is not good that such a farmer cannot get his blue cards back.
Has the Minister any news on his application to the EU for the over-50 premiums? Will the Government be opting for full decoupling or partial decoupling? Why was there such a delay in the appeals system concerning the milk quota? If farmers want to plan ahead, there is no point in telling them in March or April that they will not get an extra milk quota if they submitted an application last September? How can they plan ahead in such circumstances?
I complimented the Minister on his stand on foot and mouth disease. He did a great job but I cannot compliment him on the way he has handled the agricultural brief in the past 12 months.
Last year was difficult for a number of reasons. As the Deputy said, the weather was extremely poor and caused great difficulty for farmers. The market returns, especially for dairying, came under pressure for the first time in many years. The estimated drop in aggregate income was approximately 8.6% but that was after a number of good years, particularly the previous year, in which farmers' incomes were up very substantially in spite of the problems associated with BSE and foot and mouth disease. That was not the case in some other sectors of the economy, which fared very badly.
I am thankful that the weather was much better this spring. Markets appear to be a bit more balanced than they were last year. As the Deputy knows, An Bord Bainne produced its results in recent days, which were very good, and it looks forward to a better balance in international dairy markets.
Weanling and store prices are very firm and the live trade has improved considerably. It is up by approximately 139% when one compares the first five months of this year with the first five months of last year. There is a very strong trade for weanlings going to continental Europe and for adult cattle going to the Lebanon. That is creating competition in the market, which is helpful. If the weather continues to be good, I expect a substantial improvement in the agriculture industry in the autumn. Farmers and their co-operatives have a responsibility to ensure that they get the best return from the marketplace and that they have the most efficient operation possible.
In dairy, for example, some farmers can produce milk for 40 to 45 cent per gallon, but for others the cost is 75 to 80 cent per gallon, so neither they nor Deputy Breen can blame the Minister of the day for all the problems in farming and in agriculture. I regret that farmers have withdrawn from processing in the beef industry. They were substantially involved up to a decade ago and they have withdrawn one after the other and left the private operators to undertake beef processing. Oganisations such as Kerry Co-op, Golden Vale, Glanbia or Avonmore, as it was then, and Cork Marts IMP were all co-operative which were farmer controlled, but none of them is involved now. We need to be competitive and I expect that this year, not because of anything I do but because of the influence of the weather, will have a big impact on improving the position of farmers for the coming year.
