I propose to take Questions Nos. 367 and 368 together.
The pig sector remains the third largest individual component of the agri-food sector, with production, prices and exports all growing significantly during 2011. Prices have continued to increase during 2012 and are currently at record levels, some 12.53% ahead year on year, or 18c per kilo higher. The industry faces a number of challenges in the short and medium term and my Department will continue to assist the sector to resolve these issues.
New EU Animal Welfare rules set down new standards in relation to the housing of sows and will come into force on 1 January 2013. A significant number of producers have undertaken the necessary work required in order to upgrade their facilities in order to comply with the new rules.
Notwithstanding this, my Department is aware of the scale of the challenge facing pig farmers in respect of the new requirements. To this end, the Department introduced a Targeted Agricultural Modernisation Scheme (TAMS) for Sow Welfare in June 2010, with a total of €13 million being set aside under this scheme. It follows two earlier schemes in 2005 and 2007 which made payments of €6.36 million to 64 applicants.
Following discussions with producers and the evidence of the initial stages of the scheme my Department modified and improved some elements of the scheme. Grant-aid is now available at a rate of 40% to eligible producers with a maximum investment ceiling of €500,000 for the first sow house, with further amounts of €300,000 for each of the next three houses. Applications from 47 producers with a value in grant terms of €4 million were received prior to the enhancement of the scheme. Since the revised scheme was launched a further 37 applications have been received with a grant value of €7.1 million. This latter number includes a small number of the initial 47 which were withdrawn and resubmitted under the more favourable terms. The penultimate tranche closed yesterday with a final closing date for applications of 31 October 2012.
I, together with officials from my Department met with the IFA during the summer to discuss a number of issues including the new animal welfare measures. My officials continue to engage with all relevant stakeholders with a view to ensuring Ireland’s compliance with the requirements by the January 2013 deadline. My Department is in regular contact with banking representatives and has encouraged them to discuss requirements with sectoral agri-food interests. It is of course important that those seeking credit present a suitable business case with detailed cash flow projections. In this context the Department also facilitated contacts between Teagasc and the Banking sector to encourage seminars and training in relation to credit application. Any farming enterprises that feel they have not been treated fairly in relation to access to credit can contact the Credit Review Office, who will review their case.
Improving access to credit is a priority on the business agenda and is an issue which the Government is addressing in a comprehensive and co-ordinated manner. To address the issue the Department of Jobs, Enterprise and Innovation will shortly launch both the Temporary Partial Credit Guarantee Scheme and a Microenterprise Loan Fund for small business. While primary production in agriculture, horticulture and fisheries are excluded from the scope of the Credit Guarantee Scheme in the light of particular restrictions under the De Minimis State Aid rules, these enterprises may be eligible under the Microenterprise Loan Fund provisions.
I am also working to improve access for Irish pigmeat to 3rd Country markets, and indeed in 2011, exports of Irish pigmeat to international (non-EU) markets increased by 25% to 43,000 tonnes. I can assure you that my Department and its agencies will continue to work closely with the industry to ensure that it can continue to develop and grow in accordance with the targets in the Food Harvest 2020 Report.
