Written Answers Nos. 72-79
72. Deputy John O'Mahony asked the Minister for Agriculture, Food and the Marine when a person (details supplied) in County Mayo will receive their agri-environment options scheme payment for 2014; and if he will make a statement on the matter. [7273/15]
View answerThe person named is an applicant under the Agri-Environment Options Scheme 2010. A Department review of the non-productive capital investment claims submitted by applicants was undertaken in 2014. This review identified irregularities with documentation submitted for reimbursement in some of these claims. A full Department investigation is now underway into this matter and the application of the person named is included in this investigation.
Further payments to AEOS participants included in this review are being withheld for the time being. My Department wrote to each of the applicants concerned on 28 January to explain the situation. Decisions on any future payment cannot be taken until the findings of the investigation are to hand.
73. Deputy Paul J. Connaughton asked the Minister for Agriculture, Food and the Marine the reason payment has not issued in respect of a person (details supplied) in County Galway for the beef genomic scheme for 2013 and 2014; and if he will make a statement on the matter. [7222/15]
View answerThe Beef Genomics Scheme was launched in 2014. The person named submitted an application under this Scheme on 19 March 2014. The validation of this application has recently been finalised and any outstanding payment will issue to the applicant as soon as possible.
74. Deputy Paul J. Connaughton asked the Minister for Agriculture, Food and the Marine the position regarding payment in respect of a person (details supplied) in County Galway; and if he will make a statement on the matter. [7223/15]
View answerThe Beef Genomics Scheme was launched in 2014. The person named submitted an application under this Scheme on 19 March 2014. The validation of this application has recently been finalised and any outstanding payment will issue to the applicant as soon as possible.
75. Deputy Paul J. Connaughton asked the Minister for Agriculture, Food and the Marine the reason deductions were made from a single farm payment in respect of a person (details supplied) in County Galway; and if he will make a statement on the matter. [7224/15]
View answerAn application under the 2014 Single Payment/Disadvantage Area Scheme was received from the person named on 8 April 2014 with a declared area of 15.30 hectares in respect of the 17.90 entitlements held. The 50% advance payment under the Single Farm Payment issued on 16 October 2014 and the balancing payment issued on 1 December 2014, without any deductions, to the nominated bank account of the person named.
76. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he expects the beef industry to benefit from the recently re-opened market in the United States of America over the next three years; and if he will make a statement on the matter. [7235/15]
View answerThe recent announcement of Irish beef gaining re-admittance to the US market was the result of significant political, technical and diplomatic efforts by my Department, Bord Bia and Irish Embassy in Washington DC. It was a collaborative effort which has borne fruit, with Ireland being the first European country to regain access to the biggest beef market in the world.
The US beef market is potentially lucrative, with consumption at 11 million metric tonnes annually, which makes this new market such an exciting one for Irish producers. While grass fed is a small volume category compared to conventional or grain fed beef, currently accounting for approximately 10% of total volume, it is estimated to be growing at approximately 20%+ per annum. Consumers in this segment of the market will be a key target in the marketing efforts to promote Irish beef.
Last week I visited the US to launch the arrival of Irish beef there and hosted launch events in New York, Washington and Boston. All of the major Irish beef exporters that accompanied me reported strong interest from US buyers and distributors, which I am sure will lead to further collaboration in the future. I also had the opportunity to meet with many buyers and distributors and it was clear the superior taste and quality of Irish beef allied to the sustainability of its production clearly resonated with the US audience.
In addition, last week Bord Bia unveiled their marketing strategy for Irish beef in the US having been actively preparing the groundwork for market entry. Having this first-mover advantage as the first and only EU MS to achieve access to date is significant. One of the key announcements last week was the launch of a dedicated website highlighting the qualities of Irish beef to US beef consumers and buyers.
Currently just 2% of Irish beef exports go outside the EU each year and further diversifying the available markets has been a key element of my strategy for the beef sector for some time. This is a key element in ensuring more sustainable returns to beef farmers and ensuring that an over-reliance on particular markets does not harm the long term prospects of the sector. I am very confident that the opening of the US market is a major step forward in ensuring the long term viability of the beef sector.
77. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the number of new beef markets identified, or deemed suitable, for further development, excluding the recently re-opened beef market in the United States of America; and if he will make a statement on the matter. [7236/15]
View answer2014 was undoubtedly a very challenging year for the beef sector but despite the difficult market environment, the value of overall beef exports rose slightly to €2.27 billion. The volume of beef available for export was approximately 530,000 tonnes whilst average prices fell by around 11%. The volume of beef destined for the UK (up 9%), Continental Europe (especially Italy, Scandinavia and Germany) (up 17%), and international markets (up 10%) increased in 2014.
In so far as exports to third country markets have been concerned, I have been very active in building and expanding relationships in potential markets in order to raise the profile of Ireland and build the kind of confidence in Irish production and control systems that provide a platform for long-term trading relationships in the future. In the last year, I have lead trade and political missions to China and the US as these have been identified as key priority markets. I was delighted to be in the US last week to launch the arrival of Irish beef for the first time there in 16 years and I can report very strong interest from US buyers and distributors in Irish beef.
In the last year agreements have been reached with Japan, Lebanon, Philippines, Namibia and New Caledonia for the export of Irish beef. Work is currently ongoing with Korea, and significant progress has been made on securing market access to the Chinese market. My Department continues to engage with industry and Bord Bia to identify markets which may present market opportunities and be lucrative for Irish beef and will pursue these opportunities as a priority.
78. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he and his Department continue to monitor the development of the beef industry, with a view to minimising peaks and valleys, and offering producers a reasonable return on their investment; and if he will make a statement on the matter. [7237/15]
View answerPrice volatility has been a significant feature of agricultural commodity markets including beef in recent years. In Ireland, average prices rose steadily from €3.22 a kilo at the start of January 2011 to an unprecedented peak of over €4.40 per kilo in June of 2013. They subsequently declined to €3.51 in September of 2014 before recovering to the current price with tightened supplies of €4.05 excluding VAT. Prices are a function of normal supply and demand factors which are in turn influenced by the seasonality of production, the length of the production lifecycle, and market conditions such as retail promotions, consumer confidence, competition with other meats, exchange rates and the overall macroeconomic situation. Last year Irish processors slaughtered nearly 10% more animals than in 2013 and over 17% more than in 2012, while there has been a drop in beef consumption throughout Europe.
There are structures in place to help to alleviate the impact of these price changes, and to help farmers to reduce production costs and increase efficiencies. Successive reforms of the Common Agricultural Policy have involved a shift in emphasis from market supports to direct payments to farmers. The €1.2 billion per year secured in direct payments each year forms a constant and secure income for farmers, and this is a particularly important buffer as prices fluctuate. In addition, the need to ensure a viable future for the beef sector has been central to the draft €4 billion Rural Development Plan submitted to the EU Commission in July.
The RDP includes a number of elements which will be of benefit to beef farmers throughout the country, including the Beef Data and Genomics Programme which will be worth around €300 million over a 6 year period and should bring about long term improvements to the sector though improving the genetic quality of the beef herd. Also, the continued support under the new agri-environment scheme GLAS and the €195 million per year support for disadvantaged areas will be of significant benefit to beef farmers.
Reducing input costs and improving efficiencies on farms has also been a key focus, and in this regard the funding by my Department to Teagasc, ICBF and Animal Health Ireland is critically important. I have also been active in developing new market opportunities for Irish beef and in recent years markets such as, Japan, Singapore, Egypt and Iran have been opened. In addition, I launched Irish beef on the lucrative US market last week and I am confident of further success in the coming months.
Finally, it should be noted that prices for R3 steers in Ireland have risen by 54 cents per kilo since the beginning of September. This is an increase of over 15 % during this period and Irish prices are now at 105 % of the EU15 average price.
79. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he remains satisfied regarding the attainment, or the surpassing, of targets set out in Food Harvest 2020; the areas in respect of which he expects the better performance; the areas needing further attention in this regard; and if he will make a statement on the matter. [7238/15]
View answerI am confident that the industry developed targets set out in Food Harvest 2020 are attainable and can be met. As the Deputy is aware, the main targets in the Food Harvest report are by 2020 to increase the value of:
- Primary output in the agriculture, fisheries and forestry sector by 33%;
- Value added production by 40%;
- Agriculture, food (including seafood) and drink exports by 42%;
In addition, a 50% increase in milk production following the abolition of the milk quotas and a 78% increase in the volume of aquaculture production is envisaged.
Progress on these targets and on the 215 recommendations in the Food Harvest report are monitored and reviewed on an ongoing basis. The fourth annual report “ Milestones for Success 2014 ”, published last September, showed that the sector had achieved very significant progress on these targets. Four and a half years into a 10 year strategy, the value of primary production has almost reached its target and export s have grown by 27% compared to its 2020 target of 42% growth. That report, link attached, also used case studies to illustrate the manner in which the Food Harvest 2020 vision of 'smart, green, growth' is being attained.
http://www.agriculture.gov.ie/media/migration/agri-foodindustry/foodharvest2020/Milestones201415ArtFINALLayout1170914.pdf
The CSO trade statistics for 2014, which were published last week show that the value of primary production has grown by 30%, value-added has increased by 23% and exports have grown by 27%, compared to the Food Harvest 2020 baseline period.
Based on these statistics, all targets are currently well on track but notwithstanding same, I regard it as opportune to continually review the internal and external environment so that we will continue to maximise the opportunities available to this indigenous sector. To that end, I have appointed a 2025 Agri-Food Strategy Committee to report back to me by end June with any key recommendations and actions they consider necessary to achieve this objective.
