Last year, I launched the three-year, €54 million Grassland Sheep Scheme, availing of the unused Single Payment funds. During the CAP Health Check negotiations, I had as one of my high priorities getting access to these CAP funds and, immediately it became clear this had been achieved, I identified the sheep sector as one that was vulnerable and in need of specific supports. I am confident that this Scheme, which focuses on those flocks with breeding ewes, will maintain the breeding flock and will act as a real incentive to farmers anxious to maintain their production levels, which are essential for the future of a viable sheep industry in this country .
The supply of lambs is a key and fundamental element underpinning the sheep and lamb processing industry. This is a hugely valuable export-orientated part of the Irish agri-food sector, supplying a high-value product to consumer markets throughout Europe. The industry is worth around €250 million to the Irish economy and over two thirds of the product is exported.
Irish sheep farmers are facing significant production and demand pressures at present, though Ireland is not alone in this regard. To maintain a viable industry, we must arrest the decline in reducing flock numbers, income pressures and producers leaving the sector. I believe that this Grassland Sheep Scheme will achieve these aims and will provide a much needed and very valuable income support to an important and vulnerable sector . This is a new stream of income which, I am satisfied, will be of immense benefit to this very important and valuable sector.
While it had been my intention that payments under the Scheme would commence in December, as the EU Commission raised some technical questions regarding payments to sheep farmers under EU Pillar I and Pillar II Schemes, including the Grassland Sheep Scheme, it has not yet been possible to do so. My officials have responded in detail to the Commission and there are ongoing discussions between both parties. I am pressing for an early conclusion to these discussions, with the intention of payments under the Scheme issuing as soon as possible thereafter.