I propose to take Questions Nos. 25, 44 and 59 together.
The agri-food sector is contributing to the country's economic recovery through its significant role in adding value to the economy and its contribution to the export led recovery. CSO data shows that Ireland's agri-food exports increased by 11% in 2010, reaching almost €8 billion. This sector is continuing to improve in 2011 with current figures showing a 12% improvement in the first six months of 2011 vis a vis the same period in 2010 and final year projections are of the order of €8.9 billion.
The agri-food sector plays a particularly strong role in encouraging domestic expenditure. Analysis shows that more than 70% of its expenditure is on Irish goods and services. This, allied to its lower level of profit repatriation, means that its contribution to the Irish economy is significantly greater than that of other manufacturing industries.
The Deputy should also be aware of the embedded nature of this sector which according to the Census of Agricultural Production has
An annual turnover of €22billion, which is 20% of industries turnover
Accounts for 18% of Ireland's total industrial output and
Provides an outlet for produce from Ireland's 128,000 farms and is the main employment for circa 135,000 people
To ensure the continued development of the sector, I am personally leading the implementation of Food Harvest 2020 which sets out the industry’s strategic vision for the next decade and which contains over 200 recommendations designed to assist the industry achieve its key growth targets. Fuller details on plans to progress this report are available in my answer to Parliamentary Question 38927/11 of today’s date.
It is my view, broadly speaking, that the measures announced in Budget 2012 would encourage farming activity, incentivise greater productivity at farm level and so assist the achievement of the growth targets mentioned in Food Harvest 2020.