Dáil Éireann Debate, Tuesday - 8 February 2005
100 Mr. Gilmore asked the Minister for Communications, Marine and Natural Resources his plans to tackle cheap Norwegian salmon imports which are contributing to a crisis in the fish farming industry here; his views on whether production of Irish farmed salmon has dropped in recent years; the efforts he will make to revive this important industry; and if he will make a statement on the matter. [3579/05]
View answerFollowing a decade of continuous expansion, the salmon farming industry has faced a number of difficulties over the past three years. The most significant of these has been a 30% drop in product prices as a result of distortion to the international market. Coinciding with this, Irish salmon farms have experienced exceptional mortality levels during 2003 and 2004.
At a national level, higher than average levels of pancreas disease have resulted in considerable losses, while in south Donegal exceptional salmon mortalities were experienced during 2003 which caused a total loss of production on three farms. These difficulties have led to significant financial losses for the industry. Annual production has fallen from a high of 23,313 tonnes in 2001 to its current level of 14,067 in 2004. The farmed salmon industry is worth about €59 million annually to the national economy. This is some 30% lower, however, than the value of the industry in 2001, prior to the difficulties outlined above. The international market for farmed salmon has suffered significant trading difficulties in 2003 and 2004. This was caused primarily by the impact of low price imports of Norwegian farmed salmon to the Community market.
The European Commission has accepted that there is a real problem which is undermining the market for Community producers. The Commission introduced provisional safeguard measures in August 2004 which lapsed on 6 December 2004, after they had been referred to the Council. I have worked closely with the authorities in UK and with industry representatives to press for strengthened safeguard measures. As a result of our combined efforts it is hoped that safeguard measures will be applied to the salmon market in the near future.
These measures will involve a minimum import price and a tariff quota. The introduction of safeguards should have a positive impact on EU price levels and subsequently the overall profitability of the Irish farmed salmon sector. These safeguard measures may be challenged at EU level over the coming months and, accordingly, further work may be necessary to ensure their retention.
In addition to seeking a level playing field for our salmon farmers in the EU marketplace, I have asked the Marine Institute to prioritise research into the possible causes and most effective treatment regimes for addressing the current pancreas disease problems which are affecting the industry. Under the national development plan, grant aid is available to support investment in aquaculture and this aid is available towards investment that increases the competitiveness of the Irish salmon farming sector through lowering the unit cost of production. The combination of these measures should, over time, result in an improvement in the position of the Irish industry vis-à-vis its international competitors.
BIM will also step up its marketing effort by pursuing a strategy of differentiating Irish farmed salmon in the home and international market, through the use of the world class product quality assurance scheme already in place, together with increased niche marketing of the unique Irish organic salmon.
