Dáil Éireann Debate, Tuesday - 7 December 2021
667. Deputy Holly Cairns asked the Minister for Agriculture, Food and the Marine his response to a report finding (details supplied) that 26% of sheep farms were defined as economically viable as of 2020; and if he will make a statement on the matter. [60184/21]
View answerThe sheep sector is a key part of our €14bn agri-food industry. Sheep farmers play an enormous role in driving a balanced regional economy. It is for this reason that supporting this sector remains a key aim of me and my Department.
Results from the Teagasc National Farm Survey shows that in 2020 family farm incomes on sheep farms increased by 24% on 2019 levels driven by improved market conditions and decreased production costs.
Pricewise, the strong performance of the sector in 2020 has continued into 2021 and I am pleased that farmers are being rewarded from the market for their hard work and dedication to excellence. Strong market performance, supported by increased productive and environmental efficiency, will help support the efficiency and viability of sheep farming enterprises in the future. This is the overarching aim of policy and interventions development in the Department.
Reductions in production globally and increased demand are expected to support continued strong performance throughout 2021. The current average price is €6.93 per kg, which is 33% above the same period last year.
In the context of the next CAP, and in line with our commitment in the Programme for Government, enhanced administrative support for the establishment of recognised producer organisations is proposed as part of the sectoral interventions. Both the beef and sheep sector will be eligible for this support, for which funding of €1.5 million has been provided.
Recognised producer organisations have the advantage of a derogation under competition law which enables them to legally collectively negotiate on the price of their outputs.
There is also a proposal for a new Sheep Improvement Scheme worth €100 million to sheep farmers in the next CAP, in addition to the range of general supports in the new CAP which sheep farmers can avail of. This scheme is based on the previous Sheep Welfare Scheme which has been extended in 2021 and 2022 as part of the transition arrangements prior to the next CAP.
