Dáil Éireann Debate, Tuesday - 6 November 2012
894. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he continues to monitor the development and future growth prospects of the lamb industry; the areas in respect of which he anticipates particular or specific opportunities to arise while controlling costs insofar as is possible; and if he will make a statement on the matter. [47932/12]
View answerI am committed to supporting the sheep industry, which makes a valuable contribution to the overall agri-food sector. In this regard I very much welcome the fact that the declining trend in numbers in our national flock has been reversed and that our sheep numbers are now increasing. This reflects a growing sense of confidence amongst our sheep farmers in terms of rebuilding breeding stock numbers which will ultimately lead to an increase in through-put. So far this year through-put has increased by over 182,000 compared to last year. However I am aware that market conditions for Irish sheepmeat, particularly for light lambs, are proving more difficult than in 2012 mainly because of the recession in Spain and Portugal. As with other agricultural sectors the market performance of the sheep sector, 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 continuing to apply on-farm 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 included €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 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. 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 exporter 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.
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.
On a positive note, sheepmeat 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. I announced the opening of the Singaporean and South African markets to Irish lamb over the summer. 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.
