Written Answers Nos. 578-587
580. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine 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. [14905/16]
View answerThe artisan and speciality food sector in Ireland was valued at c €632 million in 2014 including €462 million in this jurisdiction, with over 350 producers employing more than 3,000 people. Evidence suggests that the sector can have a significant impact on local economies as businesses are typically owner managed and may be closely linked to local farms.
The FoodWise 2025 strategy recognises the value of this sector and its potential for development and employment. It recommends actions to help the artisan sector to realise its potential, including festival markets, a pipeline for new entrants to the Artisan Food Market at Bloom, promoting meet the buyer opportunities, delivery of small business specific consumer and market insights and programmes to assist producers to extend their business reach. Bloom 2016 is taking place over a 5 day period from Thursday 2nd to Monday 6th June. The Food Markets are an established feature. With over 100 artisan and fresh food producers involved, it is a true showcase for the finest local foods Ireland has to offer. The market stalls are run by the producers, which provides a unique opportunity for visitors to learn first-hand about the products on offer and how best to prepare them.
A number of artisan businesses have to date participated in successful programmes such as Food Academy (developed by Bord Bia, Local Enterprise Offices and Musgraves/Supervalu) and Food Works (developed by Bord Bia, Teagasc and Enterprise Ireland) which have generated new business.
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 €33m without requiring significant additional capital expenditure.
My Department is also supporting the UCC Diploma in Speciality Food Production, a food science and food business course for food producers, potential start-ups and those interested in developing businesses and/or promoting the artisan sector. More than 180 students have graduated to date, many of whom are successfully running small businesses in the artisan and speciality food sector in Ireland. My Department will be continuing to provide bursaries for the Diploma students over the next 4 years.
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.
581. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the steps he proposes to take in conjunction with his EU colleagues to protect the concept of the viability of the family farm enterprise throughout Europe; and if he will make a statement on the matter. [14906/16]
View answerThe need to protect the viability of the family farm is an imperative that informs all discussions with my counterparts at European level, and I am fully satisfied that farm families in Ireland will continue to benefit in a fair and equitable manner from the ongoing reform of the Common Agricultural Policy. These twin imperatives informed Ireland’s approach to the negotiations in 2012 and 2013, and they continue to inform the process by which the various elements of CAP reform are now being delivered. Taking the direct payments system as an example, the Deputy may recall that Ireland proposed an alternative approach to the redistribution of direct payments than that originally advocated by the European Commission, precisely because we wanted to ensure that the direct payments system could be made fairer and more equitable while at the same time ensuring that the level of transfer of payments between farmers was not of a scale that might jeopardise our objectives for the development of the sector. We now have a system which satisfies these two requirements. Last year’s payments under the Basic Payment and other schemes represented the start of a process that, by 2019, will see a considerable shift in the balance of payments from those previously receiving very high rates per hectare to those previously receiving much lower rates of payment. I believe that this not only makes the direct payments system fairer, but also ensures that it continues to provide support and income stability that will allow farmers to respond to the demands of the market. As such, it also provides a vital tool to help us achieve the objectives outlined in the Food Wise 2025 strategy.
Significant steps have also been taken to encourage the participation of young farmers in agriculture, which is vital in terms of securing the critical role that farm families play in the development of the sector. In addition to receiving a top-up of direct payments, young farmers are prioritised in the allocation of payment entitlements from the national reserve. These direct payments measures are further complemented by supports under the 2014-2020 Rural Development Programme where, for example, enhanced support for capital investment by young farmers has been made available under the TAMS schemes.
More generally under Pillar 2 of the CAP, I am focussed on the socio-economic development of our farms and of our rural areas so that all farm families have an opportunity to realise their potential. Schemes for improving sustainability (such as GLAS and the Beef Data and Genomics Programme) and competitiveness (such as TAMS) are complemented by continued strong support for disadvantaged areas (now known as Areas of Natural Constraint). I believe this combination provides a vital range of supports that will allow farm families to continue to benefit from the CAP in an equitable manner while supporting their development over the coming years.
582. Deputy Timmy Dooley asked the Minister for Agriculture, Food and the Marine when he will issue a decision to a person (details supplied) with regard to a 2015 basic payment; and if he will make a statement on the matter. [14956/16]
View answerAn application under the 2013 Single Farm Payment Scheme was received from the person named on 13 May 2013. During processing of this application dual claim errors arose involving 3 of the parcels declared, which are the subject of legal proceedings. An official from my Department will be in direct contact with the person named to clarify the current position. The processing of the 2015 application can only be progressed once the 2013 issue is finalised.
583. Deputy Brendan Griffin asked the Minister for Agriculture, Food and the Marine to review and increase the level of funding available to an organisation (details supplied) in County Kerry to assist its vital role in communities; and if he will make a statement on the matter. [15013/16]
View answerMy Department has provided funding to organisations involved in animal welfare since 1995 in order to enable these organisations provide a valuable service in the area of animal welfare. Applications for funding from animal welfare organisations are assessed by my Department and awards made on the basis of certain criteria, including the level and type of assistance provided by the organisation in the delivery of care and welfare services to animals and the level of funding raised by organisations from other sources to support welfare activities. I accept that organisations in the voluntary sector face challenges in raising funds and many rely on support of volunteers to assist in the delivery of services. This is one of the reasons why financial assistance is being provided by my Department. Since December 2010, the organisation in question has been awarded funding amounting to almost €42,000, including €10,000 allocated in December last to support its work over the coming year. I am satisfied that this represents a reasonable level of support having regard to the current budgetary constraints.
Payments of this kind by my Department are made on an ex gratia basis and it is not possible for the Department to increase the funding already provided last December. It is therefore imperative that the organisation concerned seeks to maximise funding from other sources to support their welfare activities and should not develop an expectation of, or reliance upon, repeat funding from this Department in order to sustain its activities into the future.
The scheme for 2017 will be advertised shortly and an application form will be forwarded to the organisation concerned in due course.
584. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine the number of representations he has received from Members of the Oireachtas and the number of these to which he had not issued a substantive reply by 31 May 2016 by month of initial receipt, from 1 January 2015 to 30 April 2016; and if he will make a statement on the matter. [15030/16]
View answerWritten Reps Received
January 2015 71
February 2015 82
March 2015 110
April 2015 77
May 2015 86
June 2015 58
July 2015 81
August 2015 50
September 2015 83
October 2015 71
November 2015 118
December 2015 87
January 2016 57
February 2016 75
March 2016 98
April 2016 61
Total 1265.
Of the above total, there are currently 92 representations outstanding.
In response to the significant increase in queries received I have established a new Oireachtas liaison unit in my Department. Members may contact 076 1064460 or oireachtas@agriculture.gov.ie with queries relating to payments due to constituents under schemes administered by my Department.
585. Deputy Michael Healy-Rae asked the Minister for Agriculture, Food and the Marine the status of an application by a person (details supplied) under the targeted agricultural modernisation scheme; and if he will make a statement on the matter. [15058/16]
View answerThe applicant in question has applied under the Animal Welfare, Safety and Nutrient Storage Scheme of TAMS II. The application has passed the administrative checks and has been ranked and selected. Subject to final checks on the technical aspects of the application approval should be issuing in a matter of days.
586. Deputy James Browne asked the Minister for Agriculture, Food and the Marine the steps he will take to ease the financial burden dairy farmers are currently experiencing due to the low price of milk, given the European Commission's refusal to facilitate a further deferral of superlevy payments. [15071/16]
View answerI am fully aware of the pressures on dairy farmers right now and I am committed to working with all players in the sector to address these issues and ensure that we have a sustainable dairy sector going forward. As one of the proposers of the Dairy Forum my goal is to ensure that it continues to work constructively as a vehicle for addressing issues of concern to farmers and others in the sector. The Forum has come forward with some good initiatives for farmers already, including an initiative on improving cashflow planning at farm level, which will be rolled out shortly.
The price of milk and dairy commodities is determined by a range of factors, including supply and demand at international level. Food commodity markets including dairy markets have been characterised by significant levels of volatility for a number of years and this trend has continued throughout 2015 and into 2016. Factors contributing to this global price volatility include the Russian Ban and the softening of Chinese demand on one side, coupled with increased production among key global producers, including the EU on the supply side. The longer term demographic and demand perspectives remain positive, but there is no doubt that 2016 will continue to be a challenging year.
Dealing with price volatility is a major challenge for the sector. The Single Farm Payment provides some measure of income stability, and EU market support measures will have a role to play. These measures are not enough on their own, however. The sector needs to look at measures to reduce costs on farms, and at the development of new tools, including fixed price contracts, futures markets and more flexible financing arrangements for farmers. I expect all of the stakeholders in the sector, including processors and banks, to play an active role in the development of such instruments.
I very much welcome the EU Presidency conclusions on a package of support measures to address challenges in the dairy and pigmeat sectors agreed in Brussels at Council in March. This follows on from an earlier package of measures agreed in September of last year and takes account of the ongoing difficulties in the sector.
In relation to Direct Payments I have asked the Commission to make the maximum possible provision for advance payment of the €1.2 billion in direct payments to Irish farmers. I believe that this would be a particularly useful measure to improve cash flow for farm families at this time.
I also believe that we should seek EU funding for further direct targeted aid for dairy farmers. I acknowledge that finding these funds within the EU budget will be a real challenge but in the very difficult circumstances in which our farm families now find themselves I am determined to exert the maximum pressure on this point.
The package previously announced includes a number of proposals by Ireland to the Commission in advance of Council, in particular the doubling of the intervention ceiling for skimmed milk powder and butter. This extra allocation has been utilised in the interim and recently Commissioner Hogan has indicated the Commission’s willingness to further increase this threshold to 350,000 tonnes. SMP intervention is the key EU support tool for dairy markets and helps to put a floor under prices in this extended period of downward price volatility. This extension will be particularly welcomed by Irish producers in the context of Irish dairy production patterns in the dairy sector which peak during the current period.
In terms of input costs at farm level, Ireland has called on the Commission to consider temporarily suspending EU import tariffs on fertilisers. I understand that the Commission is examining this request at present. At national level, I will continue to support the work of Teagasc, the Irish Cattle Breeding Federation and Animal Health Ireland to increase on farm efficiency and reduce input costs. The EU Presidency conclusions also refer to the possibility of advance payments under CAP, as was done in 2015. In addition my Department recently paid €26.4m in direct aid to dairy farmers, co-funded by the exchequer and the EU, to assist with liquidity and cash-flow issues on dairy farms.
I also welcome the proposal for the European Investment Bank (EIB) and member states to work together with the Commission on the feasibility of an EU export credit tool. My Department will continue to engage with the Irish banking system to ensure there is a full appreciation of the temporary impact of downward price volatility on farm enterprises which are financially sound in the medium term.
It remains clear that we need to deal urgently and effectively with this temporary problem. We must ensure that EU farmers are protected from the worst impacts of low commodity prices in an appropriate way, but remain well placed to avail of emerging opportunities when markets recover. Ireland is strongly positioned as a competitive producer of dairy, and while conditions are extremely difficult at present, Irish dairy farmers will be well placed to avail of the opportunity presented by market recovery in due course.
587. Deputy James Browne asked the Minister for Agriculture, Food and the Marine the steps he will take to address the current access to credit crisis that some farmers are experiencing; and if he will make a statement on the matter. [15072/16]
View answerPrimary responsibility for banking policy lies with the Minister for Finance. However my Department liaises with the main banks on access to finance for the agri-food sector and, in cooperation with other State bodies, continues to explore new and more competitive sources of funding for the sector. For example, the Strategic Banking Corporation of Ireland introduced an ‘Agriculture Investment Loans’ product last year, which has been very well subscribed. Also, my Department is currently preparing to procure an ex-ante evaluation for the introduction of ‘Financial Instruments’ under the Rural Development Programme. All of the banks consider the sector to be vitally important and have specialised offerings to farmers and there continues to be a significant take-up of these funds. Data from the Central Bank shows that the ‘primary industries’ sector (consisting of primary agriculture, forestry and fishing) continues to be a significant component of new Small and Medium Enterprise (SME) lending, accounting for €734m or 21% of all new loans in 2015. Primary agriculture accounted for €649m or 19% of the total.
In context of current market difficulties, it is envisaged that some farmers will experience cash flow problems in the short to medium term. One of the initiatives recently agreed by the Dairy Forum (comprising farm organisations, co-ops and processors, the Department and its agencies, as well as the banking sector) is a programme of cash flow and financial management training and advice for dairy farmers. In collaboration with Teagasc, my Department has agreed a three part programme:
- The publication of a booklet entitled ‘Cash Flow & Financial Management on Dairy Farms’, which will issue to all dairy farmers shortly.
- Cash flow training to be incorporated in an upcoming programme of dairy farm walks in each of the Teagasc regions, where advisors will be on hand for one-to-one consultations and referrals.
- The development of a standardised 15-20 minute cash flow training module that can be delivered to dairy farmers at any stakeholder meetings held by Dairy Forum participants.
This programme will run in conjunction with the existing Teagasc ‘Get Farm Financially Fit’ engagement.
In addition I have scheduled a programme of meetings with the CEOs of the main banks to discuss liquidity and access to credit issues later this month and intend to engage with them on their plans for dealing with the current difficulties over the short to medium term.
My Department is also discussing with various stakeholders, including the farm organisations, any other options there may be to assist liquidity problems. I also welcome other innovative initiatives in this regard such as those introduced by Glanbia recently.
I am fully aware of the pressures on farmers right now and I am committed to working with all players in the sector, both at national and EU level, to address these issues.
