Denis Naughten
Question:13. Deputy Denis Naughten asked the Minister for Agriculture, Food and the Marine the steps he is taking to support the sheep industry; and if he will make a statement on the matter. [25914/14]
View answerThursday, 19 June 2014
Questions (13)
Written answers
The industry wide strategy for developing the sheep industry in Ireland was set out in the Food Harvest 2020 document which envisages a 20% increase in value terms of the sector by 2020. My approach to building on the significant achievements of the strategy up until now is to drive the development of the industry at home and increase Ireland's market share of the world market. This will ensure that producers and processors can plan for the future, increasing the value of the industry for the benefit of all.
In terms of the performance of the sector in 2013, I am pleased to note that for the third consecutive year Irish sheep throughput grew, reaching 2.61 million head, a rise of 8%. These developments led to sheepmeat production rising by around 3% to stand just over 55,000 tonnes. The total value of Irish sheepmeat exports is estimated to have increased by over 4% in 2013 to reach €220m. The market outlook for Irish sheepmeat in 2014 looks reasonably stable as a result of ongoing tight EU sheep supplies and a reduced presence of New Zealand lamb. Average prices to date this year are almost 6% ahead of 2013.
At producer level I continue to put in place incentives to ensure that producers see a viable future in the sector. Earlier this year I announced the extension of the Sheep Technology Adoption Programme (STAP) for a further year. In committing funding of €3m to the programme in 2014 I am acknowledging the success of the 2013 scheme in which 4,000 producers participated. Support for the sheep sector also comes from the sheep grassland Scheme for which I have prioritised funding over the last four years. This scheme delivered €68 million directly to the incomes of Irish sheep farmers and I am very pleased that the scheme will operate again in 2014, with an increased budget of €15 million.
In addition to the budget for the 2014 Scheme being increased from €14 million to €15 million, there is the additional benefit to participating farmers in that payments under the Scheme will not be liable to Modulation, which previously applied at varying rates up to a maximum of 10%. The Modulation deductions made in respect of payments under the 2013 Scheme represent 7.5%. While it is envisaged that the payment rates will be increased under the 2014 Scheme, allowance must be taken of increased sheep numbers but overall I expect that an additional €2 million will be paid to sheep farmers in 2014 under the scheme.
As you are aware I am proposing under the new CAP that payments received under the 2014 Grassland Sheep Scheme will be incorporated into the calculation of the entitlement value in each year of the new regime for those farmers who participated in that Scheme. This will have the effect of increasing their entitlement value and ensure that such farmers do not lose through the cessation of the scheme at the end of 2014. This will include the additional €2 million payable in 2014 and will mean that enhanced funding will be available to sheep farmers under the new regime.
Under the new Rural Development Programme (RDP) I have made provision for improving efficiency and profitability in sheep production under the knowledge transfer measure and the lessons learned from STAP will inform the development of this measure. The RDP programme will provide support to farmers by means of a range of measures across a number of priorities, including environmental objectives. The new agri-environment scheme, GLAS (Green Low-carbon Agri-environment Scheme) will support, among others, extensive and hill farmers, who have shown themselves to be careful custodians of the countryside in previous agri-environment schemes. GLAS intends giving priority to those commonage farmers who reach a collective agreement on the management of these valuable landscapes. It also includes a menu of environmental actions, many of which will be suitable for all sheep farmers.
On the export front I intend to drive further the search for new markets. My Department in consultation with the meat industry and in co-operation with Bord Bia and the Irish Embassies abroad is constantly pushing for new markets and opportunities. The usefulness of alternative markets as a buffer against market volatility was obvious in the sheep export statistics for 2013. Because of the economic downturn in the UK and France our exports to those markets dipped but we were able to offset this loss with increased exports to Belgium, Germany and Sweden thereby showing a positive net result for the sector at the end of the year.
This week I met with Mr. Liu Yunshan the 5th ranking member of the Chinese Communist Party Politburo Standing Committee and First Secretary of the Central Secretariat of the CPC. I informed him of the progress Ireland has made in our efforts to gain access to the Chinese market and thanked him for the agreement of the Chinese authorities to initiate access procedures for sheepmeat from Ireland.