I welcome the Minister for Agriculture, Food and the Marine, Deputy McConalogue, to the Chamber.
Sheep Sector: Statements
I thank the Members for this opportunity to discuss this important issue today. It is something that has been raised on the floor of this House by colleagues from all sides. I welcome the representatives of farming organisations who are present in the Visitors Gallery.
We all recognise the challenges faced by our sheep farmers over the past winter. I have spoken previously about the significant contribution sheep farming makes to rural Ireland. Beef and sheep farming account for most farm enterprises, and they are very much at the heart of social and economic sustainability in rural areas where other economic activity can often be more limited. They are also the systems most reliant on direct payments and where economic viability is often challenging. Sheep production is a vital source of income for many farmers and provides the raw material for the export of more than 66,000 tonnes of meat worth €453 million last year.
Whether one is a part-time or full-time farmer, and regardless of the size or scale of their holding, no one can question the commitment, dedication, resilience and importance of sheep farmers to our country. From lambing ewes to keeping the flock healthy, it is hard work often done in inclement weather on tough terrain. As any sheep farmer will tell you, it is a labour-intensive job and help can often be difficult to source as it is only available at certain times of the year or week. Overall, though, the sheep sector is a rewarding one, and the demand for Irish product in many overseas markets highlights the importance of what is done inside the farm gate. A viable sheep sector is an integral element of a balanced regional economy. I know this first hand from growing up on my own family farm in the part of Donegal where I come from. The best evidence of the sector’s importance is not in a farm census or export data but in our rural towns, villages and parishes across the country. Whether it is mart day in Carndonagh, Carrigallen or Tullow, these towns and others like them all benefit from a vibrant sheep sector. The money spent by farmers stays in the local economy and generates multiples in economic activity.
Whether it is upland or lowland farming, I am committed to ensuring our sheep sector is protected for current and future generations. In the medium to long term, we need a sector that is an attractive proposition for young people. The maintenance of current hill and mountain landscapes is important from an environmental sustainability perspective, as well as from rural community and tourism perspectives. It is acknowledged that hill and mountain sheep farming can contribute significantly to maintaining high-quality habitats and species-rich diversity.
Food Vision 2030 is our shared strategy for the sustainable development of the agrifood sector until the end of the decade. Farmers are central to that strategy. The economic viability of our sheep farmers is crucial, not just in terms of their ability to earn a decent livelihood and return on their hard work but also in helping to deliver on environmental and social sustainability. With that in mind, the Food Vision 2030 strategy focuses on the areas that offer the best tools for improving economic viability and resilience, areas that are within the control of primary producers themselves. It also provides an overarching framework for policies, approaches and technologies that farmers and others in the agrifood chain can implement to improve their overall economic standing.
As regards exports, we exported sheepmeat to more than 30 markets last year, which is a mark of the world-class product produced on our farms. I recognise that margins in sheep farming have been under pressure, particularly over recent months, as a result of increased input costs as well as lower prices which are below the record levels achieved in recent years. As we all know, market prices are a commercial matter and not set by the Government, and the Government does not have a role in determining commodity prices in the sheep sector or in any other sector. However, it is heartening to see that the live and finished trades have improved somewhat in recent weeks in terms of the prices, and I am closely monitoring the market situation.
Approximately 15% of the lamb produced in Ireland is consumed domestically, with the balance being exported. I have requested Bord Bia to intensify its marketing and promotion of Irish lamb this year through its activities in domestic and export markets. Bord Bia has just finished an additional lamb campaign in the domestic market, which focused in particular on attracting younger consumers to eating lamb. Television advertising campaigns will also run in June and from September to October to coincide with peak supply months ahead. However, we must continue to look at the global picture, with sheep export markets remaining critical to us. Over the past decade, the Department has agreed bilateral sheepmeat export certificates for many international markets, more recently with Japan in 2019 and the US in 2022.
If we want to maintain flock numbers, we need continued targeting of farm income supports while increasing the return from the marketplace. What every farmer wants is a fair price for their product. We play our part in that by delivering more export opportunities for sheep farmers, like we did in Japan in 2019 and in the US last year, where we have some more work to do in times ahead in developing the potential of that market.
The basis on which we grow the value of our sheepmeat exports, like we have done in each of the past three years, is by continuing to promote Irish grass-fed lamb as a premium product nationally and internationally and targeting high-value markets. Our success in gaining and retaining access to international markets is directly related to our excellent reputation for food safety and a high-quality product. That, of course, is one side of the equation. The other side is ensuring these gains are passed back to the farm gate. Alongside creating the office of openness and transparency, which will be the new regulatory office, we are also advanced in drafting legislation to give legal recognition to sheep producer organisations, which can strengthen farmers’ positions in the food supply chain. This will bring benefits around collectively negotiating on price and inputs as well as payments of €3,000 to cover set-up costs and €30,000 over three years to help with administration fees.
Teagasc estimates that, although output increased by 7% in 2022, the increase in output and price was not sufficient to negate an increase in input costs of approximately 40%. The rapid escalation of costs last year dramatically reduced the margins per hectare and per ewe. Over the course of the past year, I have moved to support livestock and sheep farmers in dealing with increased costs through various measures, such as the €56 million investment into the fodder incentive scheme, which Senators will be aware provided last year and will provide again this year up to €1,000 per sheep farm. This is to cover the additional costs involved in making fodder, especially around fertiliser prices. I also recently launched an €8 million national liming programme, which is aimed at all farmers who want to reduce their fertiliser bills. I also provided €2.5 million to grant towards a multi-species sward.
Teagasc forecasts that the 2023 income outlook on predominantly sheep enterprises is likely to be in line with what 2022 levels were. Its forecast in relation to that does not take into account, for example, the higher payment rates under many schemes I have introduced under the new Common Agricultural Policy, CAP, strategic plan, which will start this year. These include the organics scheme and the agri-climate rural environment scheme, ACRES, which has had a very high uptake among the sheep sector. I worked hard over the past couple of months to make sure every sheep farmer that has applied for ACRES will get access to it and a payment from it. It is estimated that there will be approximately €5,500, with a maximum of €7,000 for the general ACRES scheme. The certainty that sheep farmers have achieved from that in the past month or so that will be available to them is very important.
Also this year, we have received 19,000 applications for the new sheep improvement scheme, which will pay at a rate of €12 per ewe. The Common Agricultural Policy will provide almost €10 billion in supports for up to five years from now. Sheep farmers are eligible for many schemes within that.
That is important. This is the first year of the new CAP. While there are differentials in each sector, the sheep sector will see the most improvement under the new CAP's supports and payments in light of convergence, front-loading, environmental schemes, organic schemes and so forth.
Regarding wool production, the Minister of State, Senator Hackett, and I have allocated funding for the establishment of a stakeholder forum to develop and promote the industry. An independent review of the wool market was published in July. It contained multiple findings and recommendations, including potential funding streams and market opportunities for wool, and identified areas for further research and development. With the establishment of the wool council, we will continue working closely with farm representatives on trying to identify new markets and add value. I have been closely monitoring the market situation. The significant improvement in it in recent weeks, particularly this past week, is welcome. According to the market reports for hoggets, we have seen increases of up to 60 cent at some factories in the past week. There has also been an improvement in the spring lamb rates, with hoggets crossing the €7 per kilo mark and spring lamb crossing the €8 per kilo mark. I hope we will see more improvements. It is important that the market is returning to farmers and fully justifies their work and recognises their need for profit. I will continue to monitor the situation closely as we proceed in implementing the schemes, ensuring that sheep farmers can avail of them fully. I will do all I can to ensure that we underpin a successful and strong sheep sector.
Before calling Senator Paul Daly, I welcome the students from Coláiste Pobail Osraí in Kilkenny. I understand the school's Dáil na nÓg group is with us today. They are joined by their principal and teacher, Ms Cathnia Ó Muircheartaigh and Ms Aisling de Faoite, respectively. We hope they enjoy and get a lot from the debate.
I also welcome members of the sheep sector, some of whom I know to see and converse with.
I wish to be associated with welcoming the young members of Dáil na nÓg and the perhaps older members of the farm representative bodies in the sheep sector.
I thank the Minister for attending this welcome debate. I was one of those who led the call for it. I hope that, on the back of it, we can see some developments in the sector, which has a long history. As the Minister rightly stated, it is the second largest sector in Irish agriculture. While people might argue for bacon and cabbage, Irish lamb stew is Ireland's traditional meal. This in itself shows how far back our relationship with sheep goes, not only as a farming community, but as a nation.
As the Minister highlighted, this sector is under pressure and it warrants our help in getting through the current crisis and improving its viability going forward. While I welcome the €1.5 billion for ACRES, the €30 million for the fodder support scheme, the €37 million for the organic farming scheme and the funding for the sheep improvement scheme under the new CAP, much of that is environment-based money as opposed to production-based money. While it might help the farm family to get from A to B with a little more ease, it is not particularly targeted at, and will not help the survival of, the sheep sector, and this debate is about the sheep sector within the agriculture sector. Sheep have many advantages from an environmental point of view. They emit fewer greenhouse gases than other livestock equivalents. By virtue of the fact that they can graze on poorer quality land, they help our environmental objectives.
I welcome the wool feasibility study and the formation of the Irish-grown wool council. Wool is an annual crop, for want of a better word. It is renewable and has great potential. While I welcome the council's foundation and work, as well as the Minister's investment in the council, I hope to see progress from it. That shearing a sheep is a net loss for a farmer is a terrible indictment. It costs more to shear a sheep than the farmer gets for the wool. In a world where every debate, regardless of sector, is about renewables, wool is one of the most renewable and environmentally friendly products we could have. It is used for clothing, but its great potential in terms of insulation has not yet been explored to its full extent. I welcome the investment and the meeting of the council, but we want to see hard results coming from it. We want to see wool becoming a profitable product again.
I welcome the funding for schemes. There has been a great deal of debate about them. Depending on who one talks to, for example, the €12 per ewe under the sheep improvement scheme does not go far enough. It is an improvement, though. Ultimately, it is also a welfare scheme, in that the money goes towards the enhancement of animal welfare. Animal welfare is also a major debate. It is important that some of the actions and conditions relating to the achievement of that money improve animal welfare.
On that subject, and product price and margins aside, the next largest issue – it is an even larger issue if you happen to be someone affected by it – affecting the sheep sector is that of dog controls. I welcome the initiatives being taken by the Minister and his ministerial colleague, Deputy Humphreys, but we need action. While the legislation, microchipping and so forth need to be improved, many laws are not being enforced. We need to see more enforcement of the current dog laws. From speaking with people out there, they have an image in their heads of savage dogs attacking sheep, but it can be the smallest, friendliest Poodle. It is called "sheep worrying", not "sheep attacking". Imagine heavily pregnant ewes in a field and a little poodle that loves a chase. Even if the poodle never kills or even bites them, it is the chase that can be detrimental in terms of lamb loss. People need to be made aware of that. It is terrible when sheep are viciously attacked and pulled apart, but the worrying and chasing can do every bit as much damage, if not more. We cannot stress that point enough.
Recently, the agriculture committee met the directors of Sheep Milk Ireland, the Crosse brothers from Cashel. They put across a brilliant picture to us of a sheep milk sector. They studied the matter a great deal. Apparently, the sector is large in New Zealand. Going by their presentation, there is a high margin. Sheep milk accounts for 1.5% of dairy production. It contains 50% more protein than cow's milk and sheep milk cheese is in demand. The project they started is importing sheep milk to complement their own sheep milk in order to get the product off the ground and build markets. I raised this matter with Bord Bia when its representatives appeared before the committee two weeks later. Bord Bia showed great interest. Its representatives said it had met the Crosse brothers and was looking into some potential developments in future. I plead with the Minister to take this matter on board, perhaps with his colleagues in the Department of Enterprise, Trade and Employment. Growing a primary industry is expensive, but this has the potential for a long-term consolidation of the sheep sector.
Rather than looking for or giving handouts as a sticking-plaster solution in respect of the crisis that exists, whether it is because of the input costs, the war, inflation or whatever, if a potential lifeline for the sheep sector could be the sheep milk market, then that is a nettle the Minister should grasp. He should leave no stone unturned because it is an ideal scenario.
The ewe rears the lamb for 30 days and is then milked commercially for six months. You will still be producing sheepmeat and there is the added income from the dairy side.
I have a question on which I am seeking clarification. There is much debate about the Windsor Framework and cross-Border sheep transportation. What number of sheep are coming into our market from the North?
I welcome the Minister. We would expect nothing less from a Minister from Donegal with great knowledge and experience of sheep to be a great advocate of the sheep industry. I want to acknowledge that.
When the Minister spoke about Carndonagh and the mart there and about Carrigallen in the lovely county of Leitrim, I was reminded of the great excitement, trading and the conversation about sheep, the sheep industry and its potential. He paints a very good picture. I have visited both places and experienced the trade that goes on there. I genuinely thank the Minister for his amazing concern and commitment. Again, I would expect nothing less from him because he has such experience of agriculture. That is why I presume he was picked to serve as Minister. My experience of engaging with him on the agriculture committee has been exemplary. I thank him for and acknowledge that. It is not always easy coming to cross-party engagement with questions and answers in the committee rooms but he is always respectful and professional in the manner in which he deals with agriculture.
I want to welcome the people in the Public Gallery. It is an important day. I will not spend too much time talking about the sheepmeat sector per se. I am a member of the Joint Committee on Agriculture, Food and the Marine, as are others here, so I have many opportunities to speak there. However, I would like to acknowledge the important work that the Irish Cattle and Sheep Farmer Association, ICSA, and the Irish Natura and Hill Farmers Association, INHFA, do in respect of the sheep sector. They are two organisations that we may not always hear enough about. They are very active and supportive and I acknowledge the very professional manner in which they represent their members. Sometimes they get lost in the bigger picture involving other agricultural representative groups.
Back in March I travelled to Leitrim to the ICSA for the sheep sector crisis meeting. It was interesting to meet sheep farmers there and talk with them about their concerns and the big issues. One focus was on sheep wool, a matter on which I will focus. I thank the Minister, who was instrumental in getting the new Irish wool council up and running. He referred to a funding commitment of €30,000. It is a start, but more may be needed. I hope that he will be open to that, based on the council's hoped-for success. I know that is an initial set-up cost but it is not a lot of money in the bigger scheme of promoting wool on the international market. The ICSA and the INHFA have representatives on the new council. That is important because if it is to be successful, the council must be made up of a broad range of people involved in the wool sector. It includes farmer representatives, shearers, merchants, crafters, representatives from industry, from textile manufacturing, as well as those engaged in research and education. They come from all around the wool sector. That is the broad brief of the council. The broad range of skills of the people who are directly involved with the council will stand to it. I am confident that this new wool council – we had one before – will breathe new life into the wool sector and will focus on increasing return for sheep farmers and their wool.
Irish wool has been underappreciated and undervalued for far too long. Think of the huge opportunities for wool in fashion, household wares and insulation. There is always new research on it. There have been trials in relation to a mix of wool in mushroom production. I do not think it has been very successful but at least it has been tried. We see it in horticultural matting and mulching. It is used in fertilisers where it is used as a mix and ground in to fertiliser to assist in spreading them. Wool is fully biodegradable given time.
My principal request to the Minister is that he would include an action relating to wool in the new sheep improvement scheme. That has not yet happened. The Minister will be aware that the ICSA is seeking a payment for shearing and presenting clean, dry wool for onward use. The payment rate under the sheep improvement scheme needs to be increased significantly. A wool action should form part of that process. I would ask the Minister to give that some consideration. It has much merit. If we are going to sustain the sheep sector and particularly the sheep wool sector, we know we will need to improve this. Historically, most of it went to Bradford. The curing of wool is a challenge for us in Ireland. We need to look at opportunities on the island of Ireland in terms of the all-Ireland agricultural policy. Maybe there are synergies on the island in this regard. A payment such as that to which I refer would also provide a solid foundation for everything the wool council is trying to achieve. As a result, the Minister’s support is critical. Sheep, the environment and the wool sector would be all the better for it.
While I am on my feet, I wish to acknowledge Coleman Keane wool merchant in Gort, County Galway, with whom I have engaged for many years. I understand that his company has ceased trading in wool, for which he has been a great advocate, because there is virtually no market for it. One cannot give the stuff away, and that is a challenge.
The Minster, Senators and I know that wool has a value. It is important, therefore, that it is used and exploited. Through the new wool council, we have a pathway to breathe life back into the Irish wool industry which is important for sheep farmers.
We have to keep working with Bord Bia to channel new markets internally and externally. Are any trade missions planned in the coming months for meat generally but also with a focus on lamb? Representatives from Bord Bia were before the joint committee. They spoke about Bord Bia's market research and how it is providing recipes and information to promote better ways to cook lamb at home. Many people will be aware of the recipes that are published online every month. Bord Bia is engaging with new ideas. People are interested. There is still a huge market for meat despite the detractors in general and those in the political establishment who think that we should only be eating plant-based food. There is a real market for meat in this country and internationally. Why would there not be when we have such a high standard of meat and are meat producers? Let us keep working with Bord Bia and expand the market. Can the Minister share his plans for external trade, engagement and the missions he hopes to undertake in the coming months to promote meat in general and lamb and mutton in particular?
This is a really important debate. We are talking about an amazing industry that has many strong links to every parish in rural Ireland.
There are nearly 50,000 sheep farmers in Ireland, which means that 50,000 families are involved in the sector. It is a massive entity and a huge industry, with many layers that need to be considered. I acknowledge the work of the Minister and the IFA and the ICSA, members of which are in the Chamber to listen to the debate. The latter shows the interest among the farming public in this key issue.
The sheep sector is in a crisis situation in regard to prices. Colleagues have referred to the new Irish-grown wool council and various trade missions. The real issue for sheep farmers is what is happening at present. I am a farmer but not in the sheep sector. I know there is exceptional financial pressure on these families at this time. The figures we were given at the committee a few weeks ago were frightening, with reference to a profit of €7 per ewe. The majority of these holdings have fewer than 100 ewes, which means a profit of approximately €700. That is a tiny amount on which families must survive.
The key is what happens in the next few weeks and months. There are initiatives to increase our local consumption from 15% upwards, international trade missions and changes to the CAP. These are all really important but the key is what we do in the short time from now until next June and July. As the Minister knows, the industry has been subject to a double-barrel effect. We had a scenario in which prices collapsed. They have increased in the past few weeks but they went down dramatically before then. The other big issue is the input costs for these poor farmers, which have been just crazy. Unlike other sectors, including beef and dairy, commodity prices went the other way when costs went up. While prices for beef and milk increased, it was the exact opposite for the sheep industry. It was a bizarre phenomenon and it put the sector in a financial crisis straight away because of the double-whammy effect. The key issue is how to deal with that in the short time that is available to address it.
I am genuinely concerned about how we are going to ensure the industry survives the next few months. There must be a pathway to ensuring that by next September and October, the majority of these 50,000 farmers are still in the industry. We need a viable sheep industry. Traditionally, sheep farming took place in areas where there was poorer land. There could be land abandonment if we do not have a sheep industry to protect the environment. We often talk about environmentally friendly farming. The sheep industry is exactly the type of environmentally friendly farming we are seeking to promote. In addition, the spend from these farmers into rural communities is significant. The real driver must be to find a way to keep that entire circle going. As I said, I am genuinely concerned about where this is going. The big question is how to move it forward.
Other speakers mentioned the Irish-grown wool council and the potential for milking sheep, which was a really good proposal that was brought to the committee. There are significant challenges with both and there probably is merit in both arguments on the long-term footing. Wool, unfortunately, is nearly worthless. Sheep must be sheared at least once a year but the value of their wool is as good as nil at this stage. Shearing is probably now a cost on the industry. The question of how we deal with that will be an issue for the long term.
On the proposal for a milking industry based around sheep, the reality is that some if not all sheep farmers are part-time and have other jobs. They might not have the capability or time to engage in milking into the future. The main consideration must be how we can protect these part-time operations in order that they have enough farm income to make them viable.
As the Minister is aware, there was a significant issue this time last year within the pig industry. I acknowledge that he moved quite swiftly to put in place a substantial package to address it. Slowly but surely, that industry has turned a corner. The Minister acted to ensure its viability. A package like that is required to ensure the viability of the sheep sector in the short term. The Minister's intervention in the pig industry ensured that industry is still alive today. We need something similar to ensure our sheep industry has the same capability. This is an issue that must be taken to the Cabinet very soon. The input costs over the past three month have left these farmers with significant merchant debt. They are not getting the price for their carcases that they deserve and the knock-on implication is that they will be in a negative scenario by the time they pay interest and everything else.
This is a ball that is rolling down the hill. The significant issue is how we deal with it. This debate is really important because it gives public representatives the opportunity to express their views on how we can move the situation forward. I hope we can get movement and an all-of-government approach to ensure the funding mechanisms that are required are put in place in order that the industry can get over the unfortunate situation it is in, which is a perfect storm of low commodity prices and high input costs. This is unique in the agricultural sector. How we deal with it in the next few weeks will determine the survival of the sheep industry into the future.
Curim fáilte roimh an Aire. I was delighted to see the exciting development in the Irish wool industry of the launch of the Irish-grown wool council, which is set to bring together industry representatives to build on the potential of the sector. As colleagues have noted, this all-island council will seek to improve the quality of Irish-farmed wool and facilitate collaboration in product and market research. The council's formation is a critical step in implementing the wool feasibility study's key recommendations, which were published last year. The Irish wool industry has been undervalued for far too long. The new council will provide research, innovation and technical expertise to support the development of wool as a key industry across the island. Irish wool has a wide range of uses. The establishment of the council is an opportunity to develop the sector domestically and internationally. It is a positive step forward.
It is crucial that we ensure a fair return for sheep farmers on their wool and produce. The establishment of the council presents an opportunity to set the tone in this regard. It is a significant milestone. Wool prices have been falling for years. Reports have suggested that farmers are willing to give away their wool because the price they have been receiving does not even cover the cost of a shear. Wool used to be a very valuable commodity from which farmers could earn an additional income. Now it is an additional cost.
Wool has an incredible range of uses. It is not just a sustainable material for clothing. Its use in insulation in the building sector is important and, as we heard from Senator Boyhan, it also has a role in the development of pathways in soft peatland. We need the State to lead and develop public procurement policies that facilitate the use of wool in insulation. The climate committee has heard about issues around the certification of insulation products such as wool, which are preventing people from using it, particularly for heritage buildings. We need a cross-departmental approach to developing the market for wool, not just for clothing but also for attic insulation and insulation of heritage buildings.
Sheep farmers, like people in many other sectors, have faced unprecedented challenges over the past couple of years, including the pandemic, Brexit, the collapse in wool prices and rising input costs. More than 40,000 sheep farmers in the State are under incredible pressure. It was disappointing and a surprise that the Minister and Minister of State did not provide new supports for sheep farmers, despite a previous announcement that officials in the Department were examining the potential introduction of such supports.
The sheep welfare scheme, which provides an additional €12 per eligible ewe, does not even cover the level of inflation farmers have faced. What is required is a scheme to the tune of €20 per ewe, such as that which Sinn Féin has advocated, to help sheep farmers to deal with the challenges they face.
Another opportunity for sheep farmers is the transition to organics. As it stands, many sheep farmers are very close to being organic farmers, but the reason they are not moving towards converting is that there is no market yet for organic sheep product. They need to know that there would be a financial benefit if they were to make that leap. The Minister has continuously failed to act on Sinn Féin's call for Bord Bia to have a ring-fenced budget for organic produce. It is simply not good enough to say continuously that the Government has no role in the market. We know there are reasons that countries are storming ahead with state intervention when it comes to this issue. Denmark is the gold standard when we look at developing the organic market. Denmark mandated its supermarkets to stock a percentage of organic produce. It created the market for farmers. It assured them they would have a market if they invested in going organic. We need to see that level of ambition from our Government to foster that agrifood system with built-in resilience to help absorb the economic blows during more challenging times. In the interim, I encourage anybody who eats meat, if they can afford to buy in bulk, to go directly to farmers because the product is far superior. It also means the farmers get real prices for the product they produce and do not have to be price takers from the large supermarkets.
I will conclude on an issue I think Senator Paul Daly brought up as well, that is, dog attacks. It is horrific to see sheep kills, 70 or 80 lambs and sheep killed by dogs, but we know also that there is the lower level issue of sheep worrying. It is welcome that the review of the dog control legislation has now concluded. I am very disappointed that the animal welfare organisations were excluded from that review process and siloed off into a separate review with which they had been engaging for a number of years. Also, it is deeply worrying that there were no dog behaviour experts involved in that review because we have heard at the agriculture committee that we need people who know and understand dog behaviour. The use of the terminology "dangerous dog breeds" is counterproductive. It lulls people into a false sense that their dogs that are not on that list are completely harmless, when we know that lots of very small dogs can be. Even as recently as today, a French bulldog was involved in an attack on a child. They are tiny dogs. Therefore, we need to be very careful as to how we approach this and the language we use. I would say "restricted breeds" but I ask people not to use the term "dangerous dog breeds" because it is counterproductive.
There needs to be greater accountability on the part of dog owners, and we need proper enforcement of dog control legislation and repercussions for irresponsible dog owners, but we also need microchipping to be enforced. Microchipping is not only the best way for an owner to be reunited with his or her dog but also the best way, if we find dogs that are responsible for sheep worrying, that we can then hold their owners to account. I therefore call on the Minister to roll out a public awareness campaign on microchipping and informing dog owners of their obligations under the law to have their dogs microchipped, to have that information updated regularly and to inform the microchip databases when a dog passes on. I will also make a call to the farming organisations. The Irish Farmers Association and the ICSA have come before the committee and have talked about the real harms being done through sheep worrying and dog attacks, but I ask them to reach out to their members and to ensure that they inform their members to get their dogs microchipped. The likelihood is that the dogs are coming from within the community, so we need everybody putting out that very public message that if you are a dog owner, you have responsibilities, and one of those responsibilities is to microchip.
I really appreciate the opportunity to speak to the Minister today. I am from the west of Ireland. I absolutely recognise the challenges that are there for sheep farmers. It is very important to note that prices have increased since the Minister was requested by this Chamber to be here. That is very welcome.
I will speak first about the findings of the wool feasibility study. It is not true to say the Government is not doing anything. It is responding to the wool feasibility study, for a start, and I know that the Minister, Deputy McConalogue, has put funding behind the wool council, and that is very welcome. We need to get that message out there to farmers because, ultimately, we need to find a market, and it is not just about the market for meat but also about the market for wool itself. That is what I will predominantly concentrate my comments on.
From a green point of view, wool is a natural product and has been used for centuries by humans as a warm insulation material, in clothing, bedding and housing. That recognition has kind of fallen off in recent decades, but we need to get back to looking at what those properties are and developing a market for wool. Across the world, natural fibres are receiving attention now for their sustainability as we are right in the middle of a climate crisis and a biodiversity crisis. I think that wool can play a really significant role. It has unique natural properties. Sheep's wool is one of these natural fibres and its renewable resources are widely used in a range of applications, as I have mentioned, insulation being one. That is not to say that it does not have an environmental or carbon footprint, but it is part of nature's shorter term cycle than, for example, fossil fuel-based products, so it cannot be put into the same category, and it is important to recognise that. When we look at the sheep industry in the round, the most environmental thing we can do is to find an outlet for each part in the product life cycle. It is obvious that current wool pricing is not making it an economic activity in itself and that only large, dedicated thin-fibre flock herds such as those in Australia justify sheep farming dedicated just to the production of wool. I know there are very few people who concentrate just on sheep farming, particularly in the west. Elsewhere, including Ireland, it is therefore a byproduct, as I have said. We must then present wool that is about maintaining quality, avoiding dampness and separating the low-quality elements and contaminants. That can further reduce its value, and that needs to be recognised.
There are different kinds of wool all over the planet. We know that Irish wool is not of the grade that is used predominantly in clothing, even though in some parts of the west of Ireland it is used in clothing. It has been used particularly as carpet: 75% carpet, 10% textiles, 10% waste and only 5% craft yarn. That craft yarn, I think, is an area we could really expand on. I see small producers in Galway, Mayo and Clare producing craft wool. That, I think, is something we can sell, not just for itself but also for tourism.
I wanted to take this opportunity to speak to the Minister because it is really important that there is always a Green Party Member to speak about anything to do with agriculture. Sometimes people are inclined to think that the Green Party is not supportive of agriculture, and that is absolutely not the case. What we really have to do is be responsible and say that there should not be byproducts that are not used and that we do not get any economic activity out of. If we rear sheep, every part of the sheep has to be used, including wool. We committed in the programme for Government that we would support the industry. That is what the Minister and the Minister of State, Senator Hackett, have been doing. Of course, we are starting on a road now that is not at its conclusion. Sheep farmers need an awful lot more, but I know the engagement is there and I am certainly willing to play my part, and the Green Party is willing to play its part, to ensure there is a proper income for farmers, regardless of the type of farming in which they are involved.
The Minister is very welcome to the House. I have asked for this debate for a long time, and I have had the Minister in here several mornings for Commencement matters. We know that we need far more supports for the sheep sector. Sheep are synonymous with our landscape, our heritage and our tourism.
It must be stated that only 4% of our sheep farmers are under 35. The average sheep farmer is 56 years of age. We are not encouraging new young farmers to get into a really important agricultural sector. We know there are significant difficulties in the sheep farming sector. We have been talking about it for months. Low prices have been a long-standing issue. There is some talk of a small increase in price but it is not enough and the Minister knows it. It does not compensate for the hardship caused. It has been compounded by factors like the increased competition from overseas producers, pressures from retailers and the saturation of the domestic market. These factors all make it increasingly difficult for sheep farmers to compete on price and remain profitable. In 2022, we exported sheepmeat to 35 countries. A total of €476 million worth of sheep was exported to factories, yet the net return for sheep farmers fell by 81%.
Another challenge facing the sector is the increasing cost of inputs such as feed, fertiliser and veterinary medicines. All costs continue to increase. We see this every week. The issue is being compounded by climate change. We have heard so much talk about the establishment of the wool council. I put down a Commencement Matter on the importance of establishing that council, but where are the actions? Where is the market expansion? Why are we not pushing this high-quality product all around the world? It is a real disappointment at this stage. I should not have to tell the Minister about the quality and the incredible product wool is, but for the record, it is one of the most regenerative and sustainable products known to us. Fleece grows every year and we have to cut it off because it is a sheep welfare issue. It can act as a fertiliser. It releases nutrients back into the soil. It needs to be utilised. I have such belief in the sector. We need to be quick and smart and come up with action on it.
There is a very short-term solution to this. Sheep farmers could be supported by providing additional payments to the new sheep improvement scheme, which was opened by the Department a few months back. It could assist farmers with the costs associated with shearing and handling wool - sorting out the dagging and bagging of wool to be cleaned in the right way, which must be done by the wool merchant. We could be helping farmers effectively now. It is a really important opportunity to assist them.
I also wish to highlight a significant prejudice against sheep farmers in the CAP, an issue I have highlighted in this House. Fifteen cows equal 100 sheep in a livestock unit. We have really good schemes for the suckler. The Minister has worked hard to get that per cow price up to €200. Farmers are only getting €12 per sheep when they could get €200 for cattle. This is prejudice against sheep. A farmer will get €3,000 for 15 cows while a sheep farmer will only get €1,200 for 400 sheep. This is not fair. This is not to begrudge any farmer. My father is one and my brother is a sheep farmer. However, we must have equity in the system.
Sheep farming is intensive and is practised by older people. Traditional farming methods have been used for generations and it will not change too much in the future. Dipping, dagging, dosing and clipping are hugely important and the farmer has to do a lot of manual work. The sheep welfare scheme needs to be increased by at least €30. I could talk about this issue at length and I have done so many times, but we need action and support because farmers cannot continue producing high-quality sheep and not getting any money for it.
I welcome the representatives from the ICSA and the IFA to the Visitors Gallery today. I thank the Minister for his very lengthy statement setting out the situation regarding the current offering of the Government and the State to our sheep farmers. However, it is clear from listening to them that sheep farmers are in crisis and the financial supports we have given to them are not enough.
It is very obvious to say that profit margins continue to fall when all the costs of these farmers continue to rise. We see sheep farmers struggle to cover even the basic costs of production. All they are looking for is to be paid a fair and decent price. The buyers are not taking into account the massive inflation we have seen over recent months - a year in fact. I know it is not our job to compensate for inflation but we have done an enormous amount for every household in this country with the cost of living and the supports the State has provided, and we need to do more for our sheep farmers. There are thousands of sheep farmers and they make a significant contribution to our economy, but right now, it is fair for them to say they are finding it very difficult to make a living let alone break even. This includes farmers in my constituency in Ballyboughal and Balbriggan in my constituency in Dublin, who I know are really struggling at the moment.
With this crisis, we have seen young farmers choosing to go into another sector and not remain in what is, as other colleagues have said, an integral part of society, heritage and culture. There is not one bit of our landscape where sheep cannot be seen grazing, but if we do not do something, these farmers do not see a future in this sector and there will not be a future for this sector if we do not continue to have it re-energised and younger people entering the sector.
We replaced the sheep welfare scheme and there are about 12,000 applicants for the sheep improvement scheme this year. I have no doubt it is a financial support where €12 per breeding ewe is much needed, but I agree with the members of the sheep farming community that it is not enough. It does not even allow them to break even let alone make a profit, and I do not know any businessman or woman in this country who is in business to lose money. Everybody is in business for the good of the economy and the sector, grá for the land and the value of what they provide, but ultimately they need to make money, which is not happening. Given the dire situation of sheep farmers, I am asking whether serious consideration has been or will be given by the Department to an emergency package for these farmers. When I say "emergency", I mean now; not in six or seven months' time when we get around to having a budget for next year. I mean now, recognising the current situation.
We have heard about the hardship suffered by these farmers. Brexit has undoubtedly been a factor putting them under financial pressure. We have seen Irish farmers facing even more competition from the UK and across the European market, so when the negative impact of Brexit is seen, I am asking whether the Department utilised the Brexit adjustment reserve fund to alleviate some of the hardship farmers are going through.
The Minister may be aware that Fine Gael held a conference on the future of farming in February that was enormously successful and well attended. It laid out the challenges that face the entire farming community. I know Fianna Fáil and Fine Gael are parties that strongly support the farming industry, but right now, if we are to be the Government that supports the sheep sector, it needs financial support and it needs it now. We need to do more and we need to do better, so on behalf of the guests who have come here, I ask for more and immediate engagement to recognise that the 50,000 sheep farmers constitute an integral part of our offering as a country in our agricultural supports systems. We need to do better and do more, so I am asking for further engagement and action.
I welcome all the representatives of the sheep farming community throughout the country. I think I see one man I know is from the trade. I was wrestling with a bad knee injury and he offered me his seat but I did not take it up. I heard him say "96 ewes and eight hoggets". Was that right? Little did I think I would meet him here today because I did not know he was coming here today, but he was obviously getting somebody to count the sheep. I welcome him along with Kevin Comiskey, Eddie Punch and the rest of the people here. I also acknowledge Michael Dillon in Roscommon, who has been in contact with me about the future of the business because that is what we are talking about today. As the Minister is aware, Roscommon has a lot of sheep. We have probably the third largest number of sheep in the country on lowland. I welcome the fact, regardless of whether it is lowland or highland, the Minister is a very good supporter of the business.
There has been a lot of talk in the debate about the wool business, but in the short term, the wool business is not going to solve the problems.
The problem we have to solve is trying to get more money. I acknowledge that the Minister engages regularly with our party, the agricultural group in our party and with others but it is a matter of getting more money for the product. I accept there has been an increase in the price of lamb over recent weeks but the price had fallen significantly. As was mentioned, costs have gone through the roof. There are major challenges in that regard. In counties like Roscommon, where there are 2,000 flocks and approximately 200,000 sheep and Galway, part of which I also represent, there are more than 300,000 sheep. It is a major part of our industry. It is not just the farmer on the ground and sheep farmers supporting the local economy, it is factories and the jobs in places like Kepak in Athleague. There are a lot of jobs in that factory. It is the marts, the agri-contractors and the merchants, all of whom have been well supported locally by sheep farmers. It is important that when we talk about sheep farming, we realise that, if that business goes down or does not improve to the extent we would like it to, there will be a knock-on consequence not alone for the sheep-farming community but for many other people throughout the farming sector.
Over the next few weeks, in particular, we must keep a close eye on the business. I say to the Minister that if there is any fallback in prices or the necessary recovery does not occur, there must be some type of intervention. I know the Minister will do that and I know he is committed to the sector. We must also admit that the amount of sheepmeat consumed at home is low. It is 15%, I think. It is worth almost €500 million in total to our economy. The Minister has spent a lot of time with his officials and Bord Bia selling Irish meat products throughout the world. I know that because when I arrive very early in town, I have seen him go into his office very early in the morning to deal with other countries across the world to sell our meat products. He works very hard on this matter. The point is we need to do more on marketing at home. We need new ideas, ways, food products and recipes. I would like to see a better push on that. They are there but we could do better. It is a good wholesome meal and it is important. I wish to offer my full support. We engage regularly with the Minister in our party. We know the challenges he faces. If the challenge at the moment and prices do not improve or if there is any fallback in prices, we must examine that particular payment of €12 being increased. Regarding wool, perhaps one could examine the payment of so much for wool through the sheep improvement scheme, SIS, which I think Mr. Comiskey said. It may be worth examining if there is a crisis. Generally, whatever we do with wool, it will not solve the crisis in the short term. More supports are needed than are currently available.
I welcome the Minister. I spoke on this matter a few weeks ago and called for a debate, so I welcome his attendance and interest in the sector. I also welcome the representatives from farming organisations. The INHFA, the IFA, and the ICSA have called for some time for additional supports to compensate for rising inputs and lower prices, notwithstanding the improvement in the last few weeks. I reiterate that call. There was a lot in the Minster's speech but he did not say there will be additional supports provided specifically for the sheep sector. I welcome the fact that 46,000 farmers will be in the ACRES, which will benefit many sheep farmers, as well as the improvement in the sheep scheme. Organics also has seen a huge increase in the budget. Regarding this specific sector and the challenges it faces this year, there is a need for an increase in support and whatever mechanism is needed for direct payment to sheep farmers across the country. I call for that again. I welcome the Minister's comment about Bord Bia campaigns and the development of new markets. There was success in the US markets recently. The Minister of State, Deputy Heydon, whose responsibility is the development of new markets, will, I understand, be visiting Washington next month to build on those relationships between customers and distributors.
The Minister said he wants to see the sheep sector protected for current and future generations and be an attractive proposition for young people. Profitability is a key component of that. For many, farming has been a vocation but perhaps for younger people it is more of a business and it is therefore important that business is viable. If one looks at many parts of my region, the hill farms in Connemara, for example, it is quite a specific skill. If you put a lowland farmer up on the hills with a dog, the dog would get confused and the farmer would also get confused even bringing sheep down from the hills. Shepherding in particular is a skill on hills and hefting is a skill passed down from generation to generation. The worry, particularly on smaller hill farms, is that those people will not come through in the future in a sector that is not profitable. I spoke to a farmer in Connemara recently who is looking into sheep breeds that do not have wool and do not require shearing, of which there are a small number of breeds, because of poor returns, the cost of shearing and the fact that dagging would be unnecessary, along with the risk of maggots that goes with having wool. These are responses to the challenges farmers in those areas face.
I welcome the initiatives in relation to the wool council. There is huge potential in the use of wool. I hope the new council can examine the potential for fertiliser pellets, wool pellets and matting and sheep wool logs for biomass to biochar initiatives. There is great potential in that area that will come in over time but the most important thing the sheep sector needs now is a cash stimulus as soon as possible. I ask that the Minister continue to raise this matter in his Department and with his Government colleagues.
I welcome the Minister to the Seanad. Like others, I called for this a few weeks ago. I thank the Minister for coming to the House. In this House, as many Senators know, we call for many Ministers to come in but they do not or we cannot find them, or Ministers of State come in from other Departments. In fairness to the Minster, he always comes in any time we ask and he takes this seriously. I thank him personally for that.
I welcome the members of farming organisations. They are familiar faces who gave a dire outlook on the sector when they met our parliamentary party a few weeks ago. I come from a tillage background, which had bad years in the past. It is good at the moment but I understand when farming can be very tough. For sheep farmers, it is more dire now than for any other sector, to be honest. I often look at this as something related to business rather than just farming. When people who do not understand farming or sheep farming look at it as just farming, they do not see it as a business and what it actually brings to the economy and society. Over the last few years, this Government supported businesses from one crisis to the next, whether that was Brexit, Covid or the cost of living. It has done everything to save as many businesses as possible through schemes brought in in very quick timeframes. For some reason, we seem to be leaving sheep farmers behind, as if they are not a sector that needs to be protected and saved. When I go back to Country Tipperary, it is very simple. People said to me yesterday that there is a €16 billion surplus expected this year and yet we cannot find money to save sheep farmers. We must be realistic. The country is in a pretty good place in terms of tax returns and this is a sector that is really struggling, needs our support and will have a bright future if it receives support from the Government and the Department. The sheep farmers I speak to are asking for that support so they can continue with their livelihoods, make them viable and, hopefully, entice a newer generation to come forward.
You will never make big money from it but you can have a wonderful lifestyle in sheep farming. We need to give people the opportunity to do it. I know the Minister takes it seriously but I ask that we look at this from an emergency point of view in the same way we have looked at other issues in recent years. We would benefit on the back of it. We must look at the markets we can open up across the world to sell this product. One of the biggest things we need to do is to sell this product as a high quality product, especially in the US. Like everything else at the weekend, how can we give lamb to President Biden in Dublin Castle but we cannot sell it as a high quality product to people in the US? That is what we need to do. That is the future of the sector. It is welcome that we are having the debate. It is good that we are having a serious discussion about it, but it is all for nothing if we do not take it in the serious manner it needs to be taken in, as an emergency situation. We have looked after other sectors before. There is no reason we cannot look after sheep farmers. I ask that it be done quickly.
That concludes the contributions from Members. I thank them for their contributions. I welcome the representatives of the farming organisations who are attending today in the Public Gallery. I ask the Minister for Agriculture, Food and the Marine to respond. I thank the Minister, Deputy McConalogue, for his work, not only domestically but also in the critical foreign markets in ensuring that Irish produce, including meat products are spread globally. We thank him for his work in that respect.
I thank the Acting Chairperson, Senator Cassells, and the many Senators who contributed to the discussion today including Senators Paul Daly, Boyhan, Lombard, Pauline O'Reilly, Boylan, McGreehan, Doherty, Murphy, Kyne and Ahearn. Many contributions showed a strong commitment to the sheep sector and many good suggestions were made. One of the lessons I will be taking away is that the next time I am on a train and Senator Murphy is there, he certainly has a good memory. He remembered Sean McNamara, the ICSA sheep chairman and president for next year. He knows almost better than Mr. McNamara knows himself how many sheep and hoggets he has. It is highly impressive. I acknowledge the presence here today of the IFA and ICSA, the representatives of the farming organisations who have been strong advocates in the past weeks and short number of months about the challenge the sheep sector has been facing.
It was without doubt a challenging winter. Fortunately, the past two, three or four years have been decent or good years for sheep. Prices have been much strong than they were historically. That was welcome. I grew up on a sheep and suckler farm. It has been a suckler farm for the past few years but it was a sheep farm for the vast majority of the time I was growing up on it. I remember drafting lambs every week. I remember the prices and losing money on them and how challenging it was. It was good to see in recent years that the prices had once again become stronger. However, recent months and especially last winter were challenging. The increased cost of grain coincided with the fact that we saw a reduction in the price, which meant it was a challenging winter especially from the point of view of finishers. Generally, in winter finishing and the store trade, there can be good and bad years. The store trade tends to be like that. The past year certainly was a challenging one. Coming into the spring, prices were under pressure and costs were still high. I was aware of it, was monitoring it closely and was sensitive to it. It is welcome that in recent months, we have seen improved prices, which is necessary for farmers. When this debate was originally sought, the price was approximately €6.05 or €6.10 for hoggets and it was good to see it break through the €7 barrier in the past week or so. It is approximately €7.10 now. We have seen an almost €1 per kilogram increase since the debate was called, which on a 22 kg or 23 kg carcase is an increase of approximately €20 or €23 per lamb. It is very much needed. There has been life in the market in recent weeks, which is important. I hope we will see that continue and maintained. It has helped to relieve some of the pressure and bring it back into a situation where farmers who are selling now are making a margin again. I will monitor it closely as it goes through the year. In the weeks and months ahead, we will be getting back on to grass-based production, as this year's lamb comes to dominate the market. I hope we will see a good, strong market for sheep that reflects the work sheep farmers put in and the absolute necessity of a strong income and reward for that work for sheep farmers.
I think it was Senator Ahearn who mentioned that lamb was served at Dublin Castle when President Biden was here. It was great to have Secretary of State Vilsack, President Biden's minister for agriculture, attend as part of his delegation. We had good engagement with him on several occasions over the course of the week. On the night President Biden spoke in Ballina, Secretary of State Vilsack led a delegation of President Biden's travelling delegation to a reception which was hosted by the Tánaiste and Minister for Foreign Affairs, Deputy Micheál Martin. Again lamb was part of the menu that evening and it was top class on both occasions, as it is as a product. When I met President Biden, the first thing he said was to thank me for all the food Ireland produces and sends to so many parts of the world. That was the first thing he said to me when he met me as Minister for Agriculture, Food and the Marine. He said it was something he felt deeply and believed strongly. It was good to hear that recognition and appreciation from him, not only for the quality of the food we produce but also the fact that despite being a small country, we contribute significantly in producing and providing food to many countries in the world. That is the case for our lamb and sheep sector, given that 85% of its produce is exported.
I am working closely with Bord Bia on ensuring it is supported to market lamb internationally and domestically. It has run additional campaigns in recent weeks. Campaigns are planned for the year ahead, which will also be important in trying to maximise the markets and the value. We will also continue the work in the US. When I led a trade delegation there last year, in early 2022, we secured sheepmeat access again for the first time in more than 20 years. Much work is going on now on developing that market and trying to tie it down and make it significant. People do not eat as much sheepmeat in the US as people do here or at European level but it is a big market of 330 million people. Most of the sheepmeat in the US comes from New Zealand and Australia, especially Australia, but there is an opportunity for us to grow that as a potential market. As I stated earlier, the market returns are important. They are the most important issue. However, from a policy and income point of view, especially stepping out CAP in the next five years, I travelled the country to make sure all sectors in all parts of the country were part of the CAP formation process.
With respect to how the CAP is structured, I accept what people say, that the sheep welfare scheme and the new sheep incentive scheme did not receive the same large percentage increase as the suckler beef scheme. Despite that, with regard to the structure of the CAP, the sheep sector is the sector that will benefit most from the changes we have made in CAP, both in Pillar 1, in respect of entitlements, front-loading and the convergence that is happening, which will most of all benefit the sheep sector, as well as in Pillar 2.
In particular, the ACRES, which is the most significant scheme in Pillar 2, really has the highest uptake among sheep farmers. As I said earlier in the year when there were calls for putting funding towards the sheep incentive scheme, if we were to apply €10 of our CAP money to the sheep incentive scheme, that would provide €1,000 for a 100-ewe flock, for example. We had significant numbers of applications from sheep farmers for ACRES. In many counties, up to half of them would have been excluded and would not have been in ACRES if we had not been able to find the extra money and the capacity to include all. The most significant contribution I could make was making sure we got all of those sheep farmers who applied into ACRES this year because that brings them into payments of €5,000, €5,500 and potentially up to €7,000. They all now have that certainty that they are in that ACRES scheme. Any sheep farmer who applied, and the vast majority would have, is now in ACRES this year. That is a big level of confidence and certainty for them.
Last year and again this year, I have been and am working in particular to address the challenges around the Ukrainian cost challenge. Last year, I moved to introduce the fodder incentive scheme delivering €1,000 per farm to make fodder and to address the increased cost of fertiliser. That €1,000 was paid to sheep farmers last year. It is in place again this year and I forward-paid it as well last November and December, so that farmers will have the money in advance to be able to pay and prepare for this year, again to address the cost challenges that exist.
I want to see a strong sheep sector and want to see it develop, as do all Senators, which is clear from all the contributions today. We all have been concerned by the recent challenges. I will continue to monitor the situation closely and as this evolves, as has been the case this year in terms of many of the steps to support the sheep sector through the CAP, I will seek to make improvements. I would like to be able to do more. Obviously I have to work with the budget I have but I want to work to make sure that budget supports the sector. Hopefully we can look forward to seeing the market continue to perform more strongly than it did, to see a return. Certainly as a Minister working at Government level and listening to what I am hearing here today, I will avail of any opportunity I can to continue to support the sector in the time ahead as we step into next year's budget and looking ahead to build on the supports we already have in place. I thank the Cathaoirleach and Seanadóirí for their contributions today and thank the farm representatives for their time also.
Cuireadh an Seanad ar fionraí ar 2.13 p.m. agus cuireadh tús leis arís ar 2.34 p.m.
Sitting suspended at 2.13 p.m. and resumed at 2.34 p.m.