Wednesday, 6 February 2019

Questions (160)

Bernard Durkan


160. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which profitability in the cereal industry remains positive; and if he will make a statement on the matter. [5921/19]

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Written answers (Question to Agriculture)

Tillage is an integral component of our Agrifood industry, making a significant contribution to overall agricultural output. Crops including horticulture, contribute approximately €700m annually to agricultural output at farm gate prices.

The cereals sector is a major contributor of high quality grain to the feed industry, provides grain for the food and drinks industry and a key source of seed production. Cereals are therefore a significant stakeholder in our agrifood industry from a supply/food safety and sustainability viewpoint and an efficient and viable tillage sector in Ireland is vital.

I acknowledge that cereal production has experienced difficult challenges in recent times. In relation to cereal markets, Ireland accounts for approximately 1% of EU production, however grain prices are affected by global market price shifts and particularly events such as last summer’s drought. It is not possible to predict the price of grain for the 2019 harvest at this early stage.

My Department continues to provide significant supports to the sector. In 2017, I introduced the €150m Agriculture Cashflow Support Loan Scheme including the tillage and horticulture sectors. As a further support, the Tillage Capital Investment Scheme under TAMS II covers specific areas of investment with over €7.3 million distributed to tillage farmers to date. Early last year I announced that the EU Protein Aid Scheme was extended for 2018, resulting in over €2.8m being paid to growers to date.

In August 2018 I announced a €2.75 million fodder production incentive measure for tillage farmers to encourage growers to participate in the fodder market. I am pleased to say that there was very positive engagement from growers with over 19,600ha of catch crops grown.

My Department also provides a high quality official crop seed certification scheme to the industry, in addition to an extensive national crop variety evaluation programme, which provides invaluable information to growers on the latest varieties available.

The agrifood sector is exploring the development of novel markets for cereal products seeking to improve competitiveness and sustainability with Irish malting barley demand increasing with growth in demand for Irish whiskey.

I am committed to this important sector which plays a key role in the development of the wider agrifood industry.