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Thursday, 14 Nov 2013

Written Answers Nos. 170-177

Common Agricultural Policy Reform

Questions (172)

Bernard Durkan

Question:

172. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the likely potential for expansion in the beef, lamb, pig meat and poultry sectors in this country and throughout the EU in the aftermath of Common Agricultural Policy reform agreement; and if he will make a statement on the matter. [48765/13]

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Written answers

Achieving political agreement on CAP reform was a major success for the Irish Presidency of the EU Council. The CAP reform deal that I negotiated is a well-balanced package of measures that provide policy certainty for our largest indigenous industry up to 2020 and is consistent with the smart, green, growth path laid out in Food Harvest (FH) 2020.

Member States are afforded a considerable measure of flexibility in how they implement the new regime. My Department is at present deliberating on the options, following a public consultation on the matter, with a view to finalising the key elements before year end.

However, the political agreement on the basic share of the direct payment and rural development reforms, which will take effect in 2015, secures the production base of the Irish meat and livestock sectors. As a result, I am confident that operators in the sectors referred to by the Deputy are now better positioned to meet the competitive challenges of the international marketplace.

Common Fisheries Policy Reform

Questions (173)

Bernard Durkan

Question:

173. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine arising from agreements entered into in the context of the Common Fisheries Policy, the extent to which the Irish fishing industry is likely to develop in the future; and if he will make a statement on the matter. [48766/13]

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Written answers

The new Common Fisheries Policy puts fishermen at the core in developing technical and conservation measures to protect juvenile fish and vulnerable fish species with a completely new regionalised decision making approach. This is a significant change as up to now fisheries decision making was centred in Brussels. The new CFP has moved away from the old system of EU wide development and application of the rules (a one size fits all approach). Instead, the new policy provides for the development of measures appropriate for each region by the Member States, in consultation with the stakeholders through the new Advisory Councils to devise and implement measures that work for the types of fisheries in the region. A first meeting of Member States from the North West region was hosted by Ireland earlier this week.

A practical and phased discards policy is being introduced where in early years of implementation, TACs and quotas will be set to take account of current levels of discards, which should see quotas increase over time. This means that fishermen will have time to adjust and implement changes that will allow for the avoidance of non target species where there are particular problems with the relevant by-catch (such as that the stock is overfished and needs to be allowed to rebuild). In that context, I have established a national Discards Implementation Group to advise on the issues arising in the effective implementation of the new policy and to recommend practical solutions and arrangements that take into account the situation of the Irish industry.

Another key element of the new CFP is the setting of fishing levels on the basis of the MSY Principle (Maximum Sustainable Yield). This should lead to healthy fish stocks and to higher quotas for Irish fishermen and more sustainable fishing patterns.

Technical measures will also be introduced to avoid and minimise catches of juvenile fish and the reforms contain a commitment to continue and further strengthen conservation measures in the biologically sensitive area off the South and West coast of Ireland (new Irish box). The commitment to develop and strengthen biologically sensitive areas, with spawning grounds and high populations of juvenile fish will also protect the livelihoods of coastal communities by ensuring that fish are allowed to grow to maturity, are more plentiful and fished in a environmentally responsible manner.

Finally, and crucially from an Irish perspective, the Hague Preferences have been maintained and given increased reference in this agreement. The Hague Preferences have traditionally given Ireland an increased share of traditional whitefish stocks such as cod, haddock and whiting in the waters off our coast when stock levels are decreasing. It is important to bear in mind that other Member States receive reduced quota as a result of their allocation to Ireland and to the UK and there was no support from other Member States for a specific provision that would have made the application of Hague Preferences a mandatory provision of the CFP. In that context, having an increased reference to the Hagues in the recitals of the new CFP Regulation is significant as it can be seen by other Member States as a clear signal of the intent of the Council and the Parliament.

From the outset of the Common Fisheries Policy revision process, Ireland’s overarching goal was to ensure a sustainable, profitable and self reliant industry that protects and enhances the social and economic fabric of rural coastal communities dependent on the seafood sector, while balancing these objectives with the need to ensure that fish stocks would be protected for future generations. I strongly believe that the new CFP will achieve that goal.

Beef Industry Issues

Questions (174)

Bernard Durkan

Question:

174. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which the beef industry is likely to be safeguarded in the future in view of the likelihood of substantial expansion in the dairy sector; and if he will make a statement on the matter. [48767/13]

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Written answers

Given the high export dependence of the beef and dairy sectors, their future prospects will be determined in the first instance by demand and supply developments in the marketplace. The dairy industry in Ireland has been constrained by the milk quota system which was introduced in 1984. A Teagasc analysis of the post-quota situation anticipates an extra yield per cow and an increase in dairy cow numbers with most of the surplus dairy calves produced going into the beef production chain. The Draft Environmental Analysis of Food Harvest 2020 published by my Department in September 2013 envisages that, even allowing for some substitution of beef cows for dairy cows, the strength of the suckler cow herd will remain relatively stable with numbers exceeding the one million head mark throughout the forecast period.

A Teagasc Sectoral Road Map for suckler beef forecasts that a 40% increase in the output value of the sector by 2020 should be achievable with increased efficiency in the suckler herd and an increase in the number of dairy beef calves. In particular, it points to a number of actions that will enhance the competitiveness of suckler beef farms:

- Greater adoption of best grazing management practices at farm level;

- An increased rate of genetic progress in the national herd;

- Reduced calving interval and more compact seasonal spring calving pattern; &

- Greater output of liveweight per hectare combined with reduced costs per livewight gain.

My Department is working, including through the relevant State agencies, to improve efficiency and profitability in the beef sector. Though its research and advisory services and the ‘BETTER’ Beef Farm Programme, Teagasc is working to communicate these messages at primary producer level. In addition, the sectoral supports delivered by my Department, including the Beef Technology Adoption Programme, are designed to complement these activities by incentivising farmers to adopt the latest technologies and best practices that will improve the physical and financial performance of their beef enterprises.

I am confident that the package of budget measures that I announced on 15 October will lay a solid foundation for securing the future of the beef sector following the abolition of the quota system. The €40m funding allocation available for 2014 is comprised of €23m for a new Beef Genomic Scheme, the operational details of which have yet to be finalised; €10m for the Beef Data Programme; €5m for the continuation of the Beef Technology Adoption Programme; plus €2m to meet residual payments under the Suckler Cow Welfare Scheme.

Cereal Sector

Questions (175)

Bernard Durkan

Question:

175. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which the cereal harvest for 2013 is up to expectation; his expectations in this regard in the future; and if he will make a statement on the matter. [48768/13]

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Written answers

The maintenance of an efficient and viable cereals sector in Ireland is clearly very important to the well being of the agri-food industry. Indigenous production of cereals is of course, an important part of primary agriculture production. In addition to generating an income for our tillage farmers, the cereals sector is a key source of grain for the milling and malting industry and feeding stuffs for the livestock sector. Annual cereals production in Ireland has fluctuated around 2 million tonnes in recent years and it is desirable to try and sustain this level of production in order to avoid over dependence on imported cereals.

The most recent Teagasc estimate of total grain production for the 2013 harvest is in the region of 2.45 million tonnes, well above the long-term average production of 2 million tonnes and is 16% higher than last year. Despite the dismal start to the growing season, the good summer resulted in excellent yields in wheat and barley. Yields for winter and spring wheat are estimated at 9.3 tonnes and 7.7 tonnes per hectare, respectively, while winter and spring barley are estimated at a record 9.7 tonnes and 7 tonnes per hectare, respectively.

Since Ireland is a deficit market for cereals, prices here are greatly affected by world prices and supplies. Grain prices for 2013 have been falling steadily from the peak of 2012 as world harvest estimates for cereals, and especially maize in the USA, are showing an increased level of output over previous years. Volatility in prices is likely to become a constant feature of Irish cereal prices in future and grain producers should factor such fluctuations into their planning and marketing strategies.

My Department operates a range of services aimed at improving the efficiency of, quality and viability of cereal production. These services include seed certification, seed testing and recommended list of varieties, research funding through the ‘Stimulus’ programme and funding for the quality assurance scheme. In addition, Teagasc provides research, training and advisory services for cereal producers. The value of all these support services is reflected in the fact that Irish cereals producers have consistently achieved some of the highest yields in the world.

Food Harvest 2020 outlined a number of challenges facing the cereal sector in the coming years including price volatility, climatic and disease issues, high input prices, small and fragmented holdings and the cost of rented land. However, the report also pointed to positive projections for cereal prices as markets are relatively well-balanced and world cereal prices are projected to be higher than in the last decade. It is known that global grain production is struggling to meet the increasing demand for food, feed and industrial uses. In addition to a rising global population creating a bigger demand for cereals, an increasing demand for meat is disproportionately increasing grain demand even further. It is predicted that global demand for cereals will reach 3 billion tonnes by 2025 compared with 2.3 billion tonnes currently.

The primary growth in requirement for Irish cereals in the years ahead is likely to be for animal feed, given the targets for increased livestock output proposed in Food Harvest 2020. However, considerable potential also exists in grains for the drink industry such as malting barley and recent significant investments by the large brewing and distilling companies here in Ireland are proof of such potential. Further, it is envisaged that there will be increased demand for Irish oats milled for human food for the home and export markets and in this context, the success of the Agribusiness sector in securing, long-term contracts with US-based Foods companies to supply milled Irish oats to a premium Irish oatmeal brand in the US market, is particularly welcome.

Animal Welfare Issues

Questions (176)

Bernard Durkan

Question:

176. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine if animal welfare requirements in respect of extensions to farm buildings have been facilitated to the extent necessary by the relevant statutory authorities; and if he will make a statement on the matter. [48769/13]

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Written answers

The new EU animal welfare requirements for the poultry and pig sectors entered into force on 1 January 2012 and 1 January 2013 respectively. My Department maintains regular contact with the relevant local authorities regarding issues which arise in relation to planning permission for the construction of animal housing which is required in order to comply with the new EU animal welfare standards concerned.

In relation to compliance with welfare requirements for sow housing, my Department has extended the deadline for the completion of works for the purposes of securing grant assistance on a number of occasions, most recently, and for the last time until Friday 28th February 2014.

Farm Household Incomes

Questions (177)

Bernard Durkan

Question:

177. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he is satisfied regarding the future viability of the family farm enterprise, with particular reference to the need to ensure an adequate return in respect of time and investment regardless of the size of the enterprise; and if he will make a statement on the matter. [48770/13]

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Written answers

Teagasc’s National Farm Survey 2012, which represents 79,000 farms, estimated that:

- 38% of farms were economically viable. An economically viable farm is defined as one that has the capacity to pay family labour at the average agricultural wage, and also to provide a 5% return on non-land assets.

- 29% of farms were sustainable. A sustainable farm is not economically viable but it is sustainable due to the presence of off-farm income.

- The remaining 33% of farms were classified as ‘vulnerable’.

Around 60,000 farms are excluded from the National Farm Survey because their standard output is less than €8,000. Most of these farms are small, but many may be sustainable due to off-farm sources of income.

A major focus of Food Harvest 2020 is to improve competitiveness and productivity and initiatives such as the BETTER farm programmes, Dairy Efficiency and the Beef and Sheep Technology Adoption Programmes are helping to increase efficiency and capacity at farm level.

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