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Wednesday, 18 Feb 2015

Written Answers Nos. 88-95

Climate Change Policy

Questions (88)

Bernard Durkan

Question:

88. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine to set out the extent to which he expects to be in a position to reduce carbon emissions throughout the agri-food and fishing industries without damage to the sectors and keeping in mind the future development needs of both industries; and if he will make a statement on the matter. [7247/15]

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Written answers

My Department is aware of the need to identify cost effective abatement measures that can reduce carbon emissions while at the same time improve farm profitability. The Food Harvest 2020 Environmental Analysis Report found that the adoption and use of high technology and best production methodologies at farm production level will yield the best environmental outcomes and result in the most effective mitigation measures.

The draft Rural Development Programme (RDP) 2014-2020 has been informed by the findings and recommendations in the above mentioned report and the 'Marginal Abatement Cost Curve for Irish Agriculture' (September 2012 prepared by Teagasc), which identified a number of measures for the abatement of greenhouse gases.

The draft RDP 2014-2020 has been designed to support the smart green growth message of Food Harvest 2020 and encompasses the themes of technology, efficiency and sustainability. The main elements of the programme include:

- a substantial new agri-environment/climate scheme (GLAS), which will build on the progress made under REPS and AEOS;

- incentives for on-farm capital investment, which will incorporate support for investments with clear sustainability benefits;

- knowledge transfer and innovation measures including support for the European Innovation Partnership, which are aimed at underpinning farm viability, sustainability and growth through the adoption of best practice and innovative solutions;

- a new beef data and genomics programme will have a range of benefits in terms of sustainability, profitability, animal health and welfare, quality assurance, and herd quality; and

- other supports aimed at collaborative farming, artisan producers and organic farming.

My Department chairs an Agriculture Climate Change Committee, under the auspices of the Food Harvest High Level Implementation Committee which undertakes work on important and urgent issues in the development of national and EU policy on agriculture and climate change. The Committee comprises representatives of Teagasc, Bord Bia and the Environmental Protection Agency, and has helped to inform the development of A discussion document on the potential for Greenhouse Gas (GHG) mitigation within the Agriculture and Forestry sector. This document is currently open for public consultation and submissions received will be considered by my Department in the formation of the agriculture and forestry sector mitigation plan.

My Department is also preparing a sectoral adaptation plan which will also be open to public consultation.

Under the Climate Action and Low Carbon Development Bill 2015, which was published in January, National Mitigation and Adaptation Plans are to be developed. The sectoral adaptation and mitigation plans will form an important part of this work. The plans will specify the policy measures to be undertaken for both mitigation and adaption and will be fundamental pillars of future national policy.

In addition, my Department is currently preparing a national strategy for the agri-food sector up to 2025 which will outline the key actions required to ensure that the agri-food sector (primary agriculture, the food and beverage industry, fisheries and fish processing, forestry and forestry processing) maximises its contribution to overall economic growth, job creation and environmental sustainability over the coming decade and builds upon the progress achieved under Food Harvest 2020. This Strategy, like its predecessor, will be developed by a Committee of leading figures from the agri-food sector.

Independent consultants are being engaged to carry out a full Environmental Assessment of the 2025 strategy to include both a SEA and AA, which when completed will inform future policy development.

Food Industry Development

Questions (89)

Bernard Durkan

Question:

89. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine to outline the extent to which he sees scope for further development in the food ingredient sector; and if he will make a statement on the matter. [7248/15]

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Written answers

Long term global trends - population increases, urbanisation, a growing middle class and increasingly affluent new markets, particularly China and India and other Asian countries – are placing huge demands on world food resources and provide opportunities for food ingredients. Global trends in health and wellness, 'naturalness', nutritional awareness and convenience are also driving sophistication in recipe development and ingredient selection.

Ireland is well placed as we produce high quality, safe and sustainable ingredients. The dairy sector is gearing up to increase production by 50% by 2020 and value added ingredients can provide a market with less price volatility than commodity production. One major opportunity is supplying dairy ingredients to infant formula manufacturers. Exports of infant formula have increased by over 55% since 2010 to c. €920m and there is further potential for growth as infant formula manufacturers increase their Irish manufacturing footprint. Market opportunities are also expanding for dairy powders and proteins, butter and cheese ingredients which are used in a very broad range of functional foods, clinical, paediatric and sports nutrition products.

The prepared consumer foods sector is a major market for meat and dairy ingredients and there is a positive trend in demand for particular products and export markets. The Irish food industry includes suppliers of ingredients such as micronutrient premixes, seasonings, brine and cure ingredients, prepared sauces, stocks, and marinades, baking aids, Individually Quick Frozen (IQF) meat and vegetable ingredients. These suppliers are developing new business in European and Middle Eastern markets.

Ireland has also significant opportunity to develop new marine ingredient industries. There is strong demand from international companies for sustainable, high quality marine ingredients such as oils, calcium and proteins as well as fish oil for direct human consumption. New supplies of marine ingredients may be found in underutilised species such as krill and boarfish.

Market insight, manufacturing and R&D capability will be key to growth. The development agencies and research bodies are working closely with food companies to facilitate this. On the market side, Bord Bia research into end users of dairy ingredients in world markets has provided insights for Irish companies seeking to expand their export footprint exporters. Promotion of Ireland as a leading source of sustainable dairy ingredients has increased awareness of what we have to offer. Companies may avail of Bord Bia market insight services across sectors and also attend trade fairs such as Food Ingredients Europe which is taking place in Paris in December.

Teagasc Moorepark provides world class support in the dairy research area to companies exporting worldwide. In strengthening their technical and product development capability, companies can and do leverage the capabilities of Teagasc and the Universities.

Sustained growth requires targeted investment. Capital investment under the Dairy Fund, administered by Enterprise Ireland on behalf of my Department, has been followed by further major investments in manufacturing capacity and capability, in many cases supported by Enterprise Ireland. Food for Health Ireland (FHI) and the Dairy Processing Technology Centre (DPTC), both supported by Enterprise Ireland, are focused on developing next generation dairy ingredients. The investment by Kerry Group in its Global Technology and Innovation Centre at Naas and R&D initiatives by other food companies, highlight the potential for dairy ingredients. Initiatives in other sectors are under consideration.

In summary, there is considerable scope for further development in the food ingredient area.

Artisan Food Sector

Questions (90)

Bernard Durkan

Question:

90. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine to outline the extent to which he sees further scope for development and employment in the artisan food sector; and if he will make a statement on the matter. [7249/15]

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Written answers

The artisan or speciality food sector in Ireland was valued at c €615 million in 2012, with some 350 producers employing more than 3,000 people. Evidence suggests that the sector can have a significant impact on local economies. The emergence of Ireland's artisan food sector, supported by growing consumer demand for niche products and a strong entrepreneurial spirit, has generated many new small food companies. Most are owner managed, frequently have a farming basis, and produce diverse products, demonstrating high potential for innovation. Artisan food also has potential to attract visitors and tourists as evidenced at Bloom and many food festivals.

The Food Harvest 2020 strategy has stimulated the development of innovative programmes for the sector. These include Food Academy, a programme developed by Bord Bia, the Local Enterprise Offices and Musgraves/Supervalu to support small producers to build businesses, which has been particularly successful in generating sales and employment. Food Works, an initiative of Bord Bia, Teagasc and Enterprise Ireland, has also been successful.

Within the artisan sector, the farmhouse cheese sector includes over 50 cheese-makers producing more than 150 types of cheese valued at over €12 million per annum at farm gate level. My Department is supporting a three year programme managed by Bord Bia under the EU Promotion Scheme to promote and increase awareness of farmhouse cheese. It is projected that with the overall increase in milk production following the abolition of milk quotas, farmhouse and specialty cheese output could increase to just over 4,500 tonnes per annum worth around €33 m without requiring significant additional capital expenditure.

Growth prospects for the sector are positive overall, driven by increased consumer interest in the provenance of food, environmental concerns, health and a desire to support the local economy.

Common Agricultural Policy Reform

Questions (91)

Bernard Durkan

Question:

91. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine to set out the extent to which he has achieved consensus with the various farming organisations on farm supports in the wake of Common Agricultural Policy reform; and if he will make a statement on the matter. [7250/15]

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Written answers

Following the agreement on the CAP Reform in June 2013 reached during the Irish Presidency of the EU, I initiated a comprehensive public consultation process with all of the relevant stakeholders including the farming organisations. Following the completion of the consultation process, I decided on the detailed rules for the implementation of the various measures in Ireland. Consultations and discussions with all of the stakeholders including the farming organisations have continued since then on the exact requirements of each.

My overall objective has been to implement the measures in a way that farmers can comply with them efficiently and effectively while at the same time ensuring the requirements of the EU Regulation and the overall objectives of the Schemes are met. At this stage, I think that there is a good degree of consensus that the approach taken is the most appropriate one from the point of view of the agricultural sector in Ireland. Over the coming days, my Department will be launching a considerable number of new schemes such as the Basic Payment Scheme, the Greening Payment and GLAS.

Installation Aid Scheme Applications

Questions (92)

Michael Lowry

Question:

92. Deputy Michael Lowry asked the Minister for Agriculture, Food and the Marine if he will review the position of the hardship cases that were affected by the abrupt closure of the young farmer installation aid scheme in 2008; the steps he will take to assist those affected, in view of the fact that a commitment had been provided by a previous Minister to allow applications that were in the pipeline to be completed and to allow eligible young farmers who were under 35 years of age to apply for the scheme when it re-opened; and if he will make a statement on the matter. [7251/15]

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Written answers

I am aware that there is a group of young farmers who established their holdings in 2008 and 2009 and who missed out on the Installation Aid scheme which closed to applications in 2008. I intend to prioritise their applications under the Targeted Agricultural Modernisation scheme (TAMS), with grant-aid payable at 40%, being introduced under the new RDP.  EU Commission approval is awaited on the proposed schemes under TAMS.

Under Pillar 1 the Regulation provides that young farmers and new entrants are priority categories under the National Reserve. It also provides scope to include an optional provision whereby Member States may use the National Reserve to allocate new entitlements or give a top-up on the value of existing entitlements for persons who suffer from a 'Specific Disadvantage'.

With regard to the group of young farmers who established their holding in 2008 and 2009, but who missed out on both the Young Farmer Installation Scheme which closed to applications in 2008 and the Young Farmer priority category under the National Reserve which includes young farmers who commenced since 2010.

I am glad to say that this category can be considered as a 'group suffering from specific disadvantage'.  The positive result of this development is that these young farmers will be eligible to apply under the 2nd phase of the National Reserve to be given new entitlements or be given a top-up on the value of existing entitlements. Applications will be made available in early April 2015. This is a very welcome outcome that I feel will address an anomaly in the system and allow for fair and equal treatment for this particular category of young active farmers.

Milk Quota

Questions (93)

Regina Doherty

Question:

93. Deputy Regina Doherty asked the Minister for Agriculture, Food and the Marine to set down the taxation position with regard to milk quota purchased but not depreciated when they will be abolished later this year. [7267/15]

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Written answers

Taxation policy is primarily the responsibility of the Minister for Finance. However I have on-going contact with the Minister to ensure that taxation policy reflects the Government's commitment to agriculture, as evidenced by our cooperation on the recently published 'Agri-taxation Review'.

On this specific question, the Minister informs me that he has been advised by the Revenue Commissioners that where a person has unused qualifying expenditure relating to a milk quota for which a writing down allowance has not been claimed, that person may be entitled to claim a balancing allowance for that expenditure. I am also advised that the abolition of quotas will not have any other tax implications.

Sheep Fencing-Mobile Equipment Scheme Applications

Questions (94)

Michael Healy-Rae

Question:

94. Deputy Michael Healy-Rae asked the Minister for Agriculture, Food and the Marine to outline the position regarding a grant for fencing of a farm in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [7268/15]

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Written answers

The application form submitted by the applicant concerned to join the Sheep Fencing/Mobile Handling Equipment Scheme (SHS) was queried with the applicant in September 2014 and again in November 2014. When all outstanding queries have been resolved to the satisfaction of my Department, processing of the application can re-commence.

Sheep Fencing-Mobile Equipment Scheme Applications

Questions (95)

Michael Healy-Rae

Question:

95. Deputy Michael Healy-Rae asked the Minister for Agriculture, Food and the Marine to set out the position regarding a grant for fencing in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [7270/15]

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Written answers

The application form for the applicant concerned to join the Sheep Fencing/Mobile Handling Equipment Scheme (SHS) was queried with the applicant in October 2014 and again in December 2014. When all outstanding queries have been resolved to the satisfaction of m y Department, processing of the application can re-commence.

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