Dáil Éireann Debate, Wednesday - 18 April 2012
1141 Deputy Tom Fleming asked the Minister for Agriculture, Food and the Marine his plans to develop the lamb sector here, increase exports and create new jobs; and if he will make a statement on the matter. [19146/12]
View answerI very much welcome the fact that the declining trend in numbers in our national flock is showing signs of reversal and our sheep numbers are now increasing. This reflects a growing sense of confidence amongst sheep farmers in terms of rebuilding breeding stock numbers which will ultimately lead to an increase in through-put. Whilst it is still too early to provide an accurate estimate for the 2012 lamb crop, it is estimated that it will be up in the order of 1-2%. The market performance of the sheep sector, in common with other agricultural sectors, is a function of supply and demand. The long-term future of the sector will depend on its ability to satisfy the market and in order to do this well it must focus on competitiveness, innovation and the demands of the consumer.
The Food Harvest 2020 Strategy includes specific recommendations for the sheep sector. It envisages that over the coming years, demand for sheepmeat on the European market will outstrip production levels, which could provide opportunities for exporting countries such as Ireland. This should provide the potential for better returns, provided the industry can continue the market and product diversification which has been evident in recent years. At producer level there is likely to be improved price prospects, provided an increased focus on production, efficiency and product quality is evident. Based on a renewed commercial focus by the sheep sector, building consumption on the domestic market and through the implementation of the recommendations of Food Harvest 2020, the industry has targeted a growth in output value of 20% by 2020.
The recommendations of the report focus on farm competitiveness and the processing sector. On the farm side, they emphasise the importance of the continuance of the application of on-farm labour efficiencies and new technologies, breed improvement and the production of a quality product. On the processing side, the focus is on efficiencies, innovation and improved product range.
There has been significant public investment in the sheep sector in recent years. Key supports for this sector include €7 million from the 2009 Single Farm Payment National Reserve under the Uplands Sheep Payment Scheme and €54 million for the three-year Grassland Sheep Scheme which commenced in 2010. The grassland Sheep Scheme is proving to be a valuable support mechanism in terms of improving income and confidence in the sector. The sheep fencing/mobile handling equipment scheme, one of five Targeted Agricultural Modernisation Schemes (TAMS), which was re-opened to applications last December, will enable many farmers in the sheep sector to complete the necessary investment works in order to maintain competitiveness and introduce increased efficiencies on their farm and so secure the future of their enterprises. All of the supports I have outlined have provided a significant incentive to farmers to maintain their production levels, which is vital for the future of a viable sheep industry in Ireland. Teagasc has also allocated almost €1.5 million for sheep research for 2012.
In addition, Bord Bia will also spend over €1.1 million this year on a promotional strategy for the Irish sheep sector which addresses the issue of safeguarding the future of the sector in the following ways:
By encouraging Irish consumers to buy more Quality Assured lamb.
By collaborating with its French and English counterparts in a campaign to reverse the decline in consumption of lamb on the French market, which accounts for over 50% of our exports.
By working with individual exporters to increase the amount of exports to higher value markets such as Germany and Scandinavia and thereby reduce Ireland's dependency on the French market.
On another positive note, sheep meat exports to International markets almost doubled to 600 tonnes during the course of 2011. This generates a great confidence boost for Irish exporters. While almost 99% of our lamb exports are to the EU, it is always beneficial to have a wide range of outlets available and to this end my Department, together with Bord Bia and the Department of Foreign Affairs and Trade continues to work to secure access to more third country outlets for Irish lamb. There is strong demand for all meats globally at present and my Department and I remain committed in our efforts to ensure that the Irish sheep sector is able to take full advantage of all of the opportunities that will arise as a result of this demand.
