Dáil Éireann Debate, Thursday - 20 May 2021
11. Deputy Sorca Clarke asked the Minister for Agriculture, Food and the Marine if he has considered amending the sheep welfare scheme in the interests of ensuring animal welfare as a result of the continued depression in wool prices. [26927/21]
View answerOn behalf of Deputy Clarke, I ask the Minister if he has considered amending the sheep welfare scheme in the interests of ensuring animal welfare standards and also in recognition of the continued depression in wool prices. Is there a way we can support our sheep farmers?
I thank Deputies Carthy and Clarke for tabling the question.
With sheep meat, it is good to see weekly prices since the start of 2021 are running consistently higher than the same period in both 2019 and 2020, with prices in early May at €7.45 per kg, a 38% increase on the same week in 2020. The year-to-date national average price is almost 30% up on the same period in 2020. The outlook for Irish and EU lamb prices for the remainder of 2021 is positive, with global sheep meat prices projected to remain good. It is a tremendous source of relief for sheep farmers across the country to see prices where they would like them to be always in order to ensure a good return for the work they put in.
With regard to opportunities in the wool sector, following the allocation of the significant amount of €100,000 in the budget for the review of the potential demand in international markets for wool-based products, such as insulation and fertilisers, I initiated a consultation to determine the terms of reference for such a review. Details of the proposed terms of reference to implement this review were published on the Department's website on 11 March 2021 and include the identification of market opportunities domestically and internationally for wool-based products; the carrying out of economic feasibility and cost-benefit analysis on proposed market opportunities; the determination of mechanisms that could be used to support industry initiatives; and the identification of potential research projects applicable to supporting the identified market opportunities. Interested parties were invited to submit comments on the proposed terms of reference or submissions on the potential market opportunities for wool products on the domestic and international markets. The closing date for submissions was 2 April 2021 and we received 38 submissions.
The sheep welfare scheme is an EU-funded animal welfare scheme targeted at breeding ewes. It was introduced in December 2016 by way of an amendment to Ireland's rural development plan. The scheme was designed to be renewable every year over four years, with the final year of the scheme commencing in February 2020. Existing sheep farmers who wished to join the scheme were required to apply to participate in the scheme in year one. There is a facility for new entrants to sheep farming, as defined in the terms and conditions of the scheme, to apply to participate in the scheme in subsequent years.
I thank the Minister for the response. I acknowledge that sheep meat prices have increased and are at a more favourable level than before. We can agree that we hope that will continue for a long time. I welcome the work done on the review of the wool sector and it is baffling in many ways that we do not have an indigenous wool sector in the country. We are all united in seeing that develop.
What is the next step for the review? The Minister indicated that approximately 30 submissions were received. I hope some of those will outline ways in which we can develop an indigenous sector and ensure we have a sustained wool industry here, with other uses for wool. This would mean we are not dependent on markets like China, which can be extremely volatile. Will the Minister outline the next steps and the timeline for those steps?
The funding of €100,000 is there for research to develop opportunities and potential for domestic use and income from wool.
We will be very much guided by the submissions we receive and we will reflect on the suggestions coming out of that to see how we can best utilise that funding to try to ensure there are new opportunities. If any opportunities present, we will look to develop them. It has been a very challenging space for farmers over the last years where wool prices have not been able to cover the cost of clipping. It is certainly a long way from where it used to be. It is a tremendous product and it can have other uses. The Minister of State, Senator Hackett, is very committed to developing this also. If there is anything we can do to try to identify new uses and sources for such a sustainable product and to deliver an income for farmers, that is what we will do as we identify the ideas and suggestions that will come through the consultation.
I thank the Minister for that response. I was speaking with a farmer in the Minister's constituency who told me he was offered €20 for one dozen bags of wool. This tells us how stark the problem is. He indicated that he was relieved not to be charged for having the wool removed. It is very important that this work continues.
On the sheep welfare scheme, I thought it was a simple enough process to amend that scheme to include clipping sheep as an additional measure that would bring even a small income to farmers and would be in the interest of animal welfare. Has the Minister given such a measure any consideration as a feasible option? As with beef and any other sector, we need to try to ensure there is stability as well as sustainability in prices and markets. No sector wants a situation of extreme price volatility one way or another. That does not allow farmers to plan. All of these things need to be taken in the round.
We would first look to explore the options for developing markets so there would be a price for wool that can actually deliver a profit for farmers and ensure the cost associated with clipping was also covered.
The sheep welfare scheme has been an important scheme for farmers and it has been extended this year. I have also updated the reference years to ensure the maximum number of farmers take part in it and that the number of sheep they have is reflected in the payments they receive. We will be looking at the sheep welfare scheme in the context of a new CAP and how it will be structured. All ideas will be considered as part of the public consultation around that. Farmers will have a chance to input into this also.
