Dáil Éireann Debate, Thursday - 20 April 2023
331. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which efforts continue to protect the sheep farming industry, with particular reference to the need to ensure and protect the markets for Irish lamb as well as the viability of the sector; and if he will make a statement on the matter. [18881/23]
View answerA vibrant sheep sector is as an integral element of a balanced regional economy and I know that sheep farmers are committed to producing a world-class, safe and sustainable product. The sector is one extremely close to my heart.
Businesses in towns and villages across the country benefit from the activity of sheep farmers. The money spent by farmers stays in the local economy and generates multiples in economic activity. I want to see the sector grow, prosper and thrive.
Although there has been a solid and sustained increase in average sheep prices since the end of February, I recognise that sheep farmers are experiencing more difficult market conditions in 2023 compared to recent years. Market prices, however, are a commercial matter to be bargained between suppliers and buyers and Government has no role in determining commodity prices in the sheep sector.
However, with hoggets crossing €7/kg and lambs exceeding €8/kg, it is heartening to see markets returning better prices than at the start of the year.
To bolster the sustainability of sheep farming, my Department provides significant support to the sector under the new CAP Strategic Plan (CSP), both through a new targeted scheme for sheep farmers - the Sheep Improvement Scheme, which aims to improve sheep health and welfare - and through the broad range of schemes in the CSP.
My Department has received over 19,000 applications for the new Sheep Improvement Scheme, which has a 20% increase in the payment rate per ewe - from €10 to €12 - compared to the previous Sheep Welfare Scheme.
The CSP provides almost €10 billion in supports over the period to 2027 for farm families. Sheep farmers are eligible for several other CSP schemes, including the ACRES and Organics schemes, which are particularly suited to sheep enterprises or mixed beef and sheep enterprises, and which are likely to provide higher direct payments to sheep farmers this year.
I have secured places for all 46,000 farmers in ACRES which I am certain will also benefit many sheep farmers.
Furthermore, support for early-stage producer organisations, which will be introduced later this year, will strengthen the position of sheep farmers in the supply chain.
Additionally, over the last year I have supported livestock farmers in dealing with increased costs by introducing:
- a €56 million fodder incentive scheme;
- an innovative €8 million national liming programme; and
- a €2.5m package for multispecies swards and red clover to reduce reliance on chemical fertilisers.
While market returns have reduced for sheep farmers, mainly because of increased input costs, Teagasc forecasts suggest that family farm income for specialised sheep farms in 2023 will be €19,500, a reduction of 2% on 2022. This reflects the important role which direct payments play in supporting sheep farm incomes.
With regard to the current challenges facing the sector, I have requested my officials to maintain close monitoring of market trends over the coming months and the Government will continue to make every effort to support the sector.
With regard to the current challenges facing the sheep sector, I have requested my officials to closely monitor market trends over the coming months and the Government will continue to make every effort to support the sector, including ongoing efforts to boost promotion activities and enhance export outlets for Irish lamb through ministerial trade missions.
I can confirm that securing, developing and diversifying market access for Irish lamb remains a priority for my Department in accordance with the strategic objectives of Food Vision 2030. The sheep sector has been successful in accessing and developing new market opportunities abroad.
In 2022, total raw sheepmeat exports were worth €453m, increasing by 17% and 14% in value and volume terms respectively relative to 2021.
Having grown up on a suckler and sheep farm in Donegal, I am acutely aware of the skill and dedication of sheep farmers here. I want to ensure that there is a long-term and successful sector for this and subsequent generations of sheep farmers be a priority.
