Dáil Éireann Debate, Thursday - 27 January 2022
373. Deputy Paul Kehoe asked the Minister for Agriculture, Food and the Marine his plans to address the challenges faced by the pig industry particularly the gap between the cost of production and the amount that farmers are paid; if he is considering the ideas put forward arising from the emergency meeting held by representatives of the pig sector; and if he will make a statement on the matter. [4150/22]
View answerOur pig farmers have always been remarkably resilient but I am acutely aware of the challenges they are facing at present.
The average price paid for pigs in Ireland has fallen in recent months, in line with trends across the EU. The 2021 average price was 8.71% lower than that of 2020. As of 16th January, the average grade E pig price came in at 141.02 €/100kg, 9.15% lower than the same week last year. However, this is still well above the EU average price of 132.48€/100kg.
At the recent European Council of Agriculture Ministers, I clearly expressed my concerns in relation to the difficulties facing the Irish pigmeat sector, both in relation to the ongoing impact of increases in fuel, fertiliser, feed and energy prices over recent times which are putting farmer margins under significant pressure, and the sustained nature of the difficulties being experienced on the pigmeat market. I sought the rapid deployment of appropriate solutions on both issues.
I met with members of the IFA Pig Committee last week to discuss concerns. Following this, Minister Heydon and I then met with the main banks to discuss the current challenges in the pigmeat sector and the importance of their ongoing support.
At this meeting I emphasised the importance of the pig sector, its overall resilience and the importance of their support to their customers through the current downturn in the business cycle. The key message was that farmers experiencing cashflow difficulties should engage with the banks as soon as possible to discuss options and that the banks remain committed to supporting their customers in the period ahead.
Separately, Minister Heydon and I, met with the Strategic Banking Corporation of Ireland (SBCI) to discuss the Brexit Impact Loan Scheme and the COVID- 19 Credit Guarantee Scheme, both of which are financed by the Department of Agriculture, Food and the Marine in partnership with the Department of Enterprise, Trade and Employment. These finance schemes can be used for working capital finance and include features which address the current financial needs of pig farmers.
Minister Heydon chaired the Pig RoundTable this week and had a further detailed discussion with all stakeholders, including farm organisations and the processing industry, on the issues facing pig farmers. In terms of State supports Bord Bia outlined the significant efforts being made to promote quality assured Irish pigmeat on the domestic and export markets; and Teagasc outlined the dedicated advisory supports being provided to pig farmers.
My Department will continue to closely monitor the market situation and is examining possible measures to assist in supporting farmers through this significant market disturbance.
