Dáil Éireann Debate, Wednesday - 20 April 2016
187. Deputy Brendan Smith asked the Minister for Agriculture, Food and the Marine the outcome of discussions at the recent European Union Agriculture Council in relation to the serious problems facing the pigmeat sector; the proposals there are to provide additional assistance at European level; and if he will make a statement on the matter. [7688/16]
View answerThe development of a viable pigmeat sector is a priority for me given the crucial role which the industry plays in supporting approximately 7,000 jobs including production, slaughter, processing, feed manufacture and services. In 2015 export volumes increased by approximately 8%, with growth to the UK, Continental Europe and International markets. Export values at €570 million, fell marginally by 2% during 2015 due to lower pig prices. Pigmeat prices tend to be cyclical in nature with periods of lower prices followed by a supply response and/or a recovery in demand. My Department carefully monitors developments in the pig sector, both domestically and internationally.
I am conscious of the fact that prices have come under pressure over the last year and a half and the difficulties that this is causing for producers. This is not an exclusively Irish phenomenon, and Irish prices have actually remained ahead of the EU average for the last five months. However I would also add that like any other EU Minister I do not have a role in the setting of prices. This is a function of the market.
At the March meeting of the Council of Agriculture Ministers in Brussels, I put forward a number of measures for the pigmeat and dairy sectors which I believe were needed immediately to help producers through their current difficulties. On pigmeat my priority was to secure the re-opening of the Pigmeat Private Storage Aid Scheme as I believe its closure did not appear justified by the current state of the EU and global pigmeat market. Given that the sector does not enjoy direct EU supports, market tools available in times of extreme price volatility must be deployed when necessary. I am pleased to note that the Commission has agreed to the re-opening of this scheme in 2016. At the April meeting I reiterated the need to move quickly on the proposals agreed in order to bring about the desired stabilising effects.
In relation to the Russian pigmeat ban, the adverse effects of the effective closure of this market are still being felt by farmers. Ireland has requested the Commission to continue and intensify its political, technical and diplomatic efforts to unlock the Russian market for EU pigmeat. We proposed that the Commission reengage and secure access for products outside the scope of the Presidential decree, such as pig fats and offals.
In the interim, a direct aid package payment will issue in the coming week to all pig farmers in Ireland with a minimum level of supply of 200 pigs slaughtered in 2015. This means a flat rate payment of over €3,000 to each farmer. This will ensure that the payment is directed to those farmers most affected by price volatility, thus meeting the requirements of the EU Regulations providing the funding. Furthermore, Commissioner Hogan has reiterated his determination to promote the EU’s interests and open up new markets for EU products, with a specific €30 million envelope for dairy and pigmeat available under the EU Promotion Scheme to reflect the market disturbances in those sectors. Ireland, through Bord Bia, will be making an application for a proportion of this funding in the very near future.
