In 1990 a company called Galtee Deer Care Limited, which has its registered office at Ballinwillin, in Mitchelstown, County Cork, promoted deer farming on a massive scale on the understanding that the potential for venison in the home market and for export was extensive. The directors of the company are Ms Miriam Mulcahy, Mr. Patrick Mulcahy and Mr. Ray MacSharry.
Adjournment Matters. - Venison Marketing.
It is not in order for the Senator to name names in that fashion.
It is significant that Charles Haughey lent his name to the promotion by attending and speaking at public functions in Mitchelstown. An auction is purported to have taken place at which large sums of money changed hands. The venture also has the public support of Teagasc which promoted deer farming as an alternative enterprise. It is reported that as much as £5 million in EU funding was made available for the promotion and development of deer farming.
The agreements reached by the company with farmers who undertook deer rearing never came to maturity. There was an assurance that the price to be paid would be breeding stock prices for five years. In fact, the price paid was far below that agreed and the company charged a 20 per cent commission on the transaction. It made a contract with people to raise deer guaranteeing purchase at breeding stock prices, but this never happened. I am aware of a herd owner who reared deer for sale independently of this operation. When he wanted to dispose of stock he could not find anyone to purchase it. A County Limerick factory kept putting him off.
The operation is a matter of public interest because of the extent of the issues involved. Expectations which were raised were never realised and farmers have been left at a great loss which could affect their future livelihoods.
In view of the close link between the business and the Department of Agriculture, Food and Forestry, I appeal to the Minister to investigate the matter fully. The investigation should be undertaken by whichever Department is appropriate with regard to company law or by the Director of Consumer Affairs. The contracted profits were not realised and the complexities of the issue were never really addressed. I urge the Minister to have the matter investigated, even if that means calling in the Garda fraud squad, which would be a justified and appropriate step to take in the circumstances.
It falls to me to outline the role of the Department of Agriculture, Food and Forestry and An Bord Bia in the promotion and marketing of venison. The reply to the matter notified to the Department does not specifically address Galtee Deer Care Limited, because the Adjournment Matter notified did not indicate that the Senator intended to deal with the company. However, in view of what the Senator said, I will urge the Minister to fully investigate the Galtee Deer Care Limited, operation and he may respond directly to the Senator.
Deer farming is a comparatively recent development in Ireland, having expanded from a base of three farms in 1983 to 530 in 1995, with a present breeding population of approximately 23,000. It is a viable alternative farming activity which is free of any restrictions imposed by CAP reform on the more traditional forms of livestock production. It is not labour intensive and so offers land owners with off-farm employment or low labour resources an opportunity of supplementing their income without incurring high wage bills.
Various grant-aid schemes have contributed to the growth of deer farming by providing funds at the crucial startup stage when establishment costs are high. Chief among these is the alternative enterprise scheme which is operated by the Department's farm development service offices. Grant aid is payable on investments of up to £20,000 for deer handling and fencing at a rate of 40 per cent or 50 per cent in less favoured areas.
Under the alternative enterprise scheme the Department has supported 441 deer farmers involving the payment of £1.329 million in the period 1988-93. Under the current programme, 541 approvals have issued in respect of planned investment of £5.7 million, for which grant assistance of £2.2 million has been approved. These figures demonstrate the positive level of response the scheme has attracted so far. Aid is also payable to farmers in respect of increases in breeding numbers. The aid is £160 for red deer and £80 for sika and fallow deer subject to a maximum of £4,000 in grant aid.
The profile of the industry is one which comprises approximately 530 producers representing 23,000 breeding female animals. There are four producer groups, three export abattoirs and four export processors and about 8,000 animals were slaughtered last year. The industry is in its infancy and characterised by small farms and small herds. It has advantages however, principally in its healthy grass finished feeding system and the fact that there are no production quotas so that the industry has significant growth potential.
In addition, producer groups are grant-aided under the live farmed deer producer group scheme. Under this scheme individual deer farmers come together and form a producer group as a co-operative or as a company under the Companies Acts prior to applying for official recognition as a producer group from the Department. The overall objective of the scheme is to encourage individual producers to adapt their production to meet market requirements through the implementation of a unified production, quality and marketing strategy.
An Bord Bia has statutory responsibility for the promotion and marketing of Irish food and livestock. While acknowledging that venison is a fledgling industry, it has recognised the market opportunities for the product and is actively seeking ways in which to exploit them. One of the board's senior executives has been assigned as product manager of the venison sector. In addition, the board has completed a study of the sector in consultation with the industry and the results of this are currently being evaluated. A closed seminar with the industry next week will devise a strategy to exploit market opportunities. This strategy will build on the success of the industry in 1995 which recorded output of £2.3 million involving the production of some 400 tonnes of venison, of which 65 per cent was exported. The principal markets are Germany and France where An Bord Bia, through its local office network, is building on the current level of market penetration.
Venison is included in An Bord Bia's promotion campaign for the home and export market. On the home market it will include partnership retail promotions, recipe leaflets, cook book inclusion, regional food fairs and demonstrations. In the export market, An Bord Bia will assist marketing plans for export companies and marketing information and venison products will be included at trade fairs. Companies producing deer products are also eligible for grant assistance from the board through its marketing improvement assistance programme and its strategic market development programme.
The board will act as a catalyst for such companies but ultimately it is for the companies themselves to secure and consolidate new markets and to assist in the growth of a vibrant venison industry in Ireland.
Last year 8,000 animals were slaughtered. Is the Minister of State aware of where that slaughtering took place?
No.
Will she attempt to discover where it occurred?
Yes.