Dáil Éireann Debate, Tuesday - 13 February 2018
506. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which the mushroom industry here can be assisted or improved in view of the impact of Brexit; and if he will make a statement on the matter. [7453/18]
View answerI am committed to working with the mushroom sector to assist it in adjusting to the challenges that lie ahead. The UK is a very important market for Irish mushrooms accounting for approx 85% of our annual production.
Access arrangements to the UK market post-Brexit will depend on the outcome of the UK’s Brexit negotiations with the EU. However, during this period the Irish Government’s position will continue to be to minimise the impact of Brexit on existing trade for all our food exports including mushrooms. My Department and its State Agencies are currently providing supports on a number of fronts.
Budget 2018 provided for a new “Brexit Loan Scheme” which will provide affordable, flexible finance to Irish businesses that are either currently impacted by Brexit or who will be in the future. The new Brexit Loan Scheme will make up to €300 million of working capital finance available to SMEs and mid-cap businesses (up to 499 employees). This will give Brexit-impacted businesses, including potentially a number of mushroom exporters, time and space to adapt and to grow into the future. I am also considering the development of a potential Brexit response loan scheme for farmers, fishermen and for longer-term capital financing for food businesses; for which my Department has secured €25 million of funding in 2018.
The EU Producer Organisation (PO) scheme is also a vital support, with around 80% of Irish mushroom growers in a producer organisation at present. This scheme provides an important mechanism for growers to achieve greater bargaining power in the marketplace by becoming part of a larger supply base. This scheme is funding a number of initiatives to improve competitiveness, including Lean Training for mushroom growers. In addition, the National Strategy for Sustainable Operational Programmes 2017-2022 for Producer Organisations in the Fruit and Vegetables sector provides aid for crisis prevention and management measures to assist with market volatility, including training and exchange of best practice measures.
For the wider horticultural sector the Scheme of Investment Aid for the Development of the Commercial Horticulture Sector continues to be the main support for individual growers in the horticulture industry who wish to make capital investments in specialised equipment or buildings. Budget 2018 allocated €5m in funding again for the Scheme in 2018, further reflecting this Government's commitment to ongoing support for the sector. The competitive nature of this scheme combined with its flexibility and ability to react to evolving situations are two key strengths in supporting this highly dynamic sector.
I can also confirm that An Bord Bia has commenced a 3-year mushroom promotion campaign on the Irish and UK markets. This campaign is co-funded by the industry and the European Commission. It is important to emphasise that the overall market for mushrooms in the UK and Ireland remains strong, showing good potential for further growth. This new promotion campaign will build on the success of previous similar initiatives and develop that growth in potential to increase exports.
