Dáil Éireann Debate, Wednesday - 10 May 2023
146. Deputy Holly Cairns asked the Minister for Agriculture, Food and the Marine the steps he is taking examine the impact of Brexit on the Irish sheep sector and the resultant eligibility for sheep farmers to access support through the Brexit Adjustment Reserve fund; and if he will make a statement on the matter. [21916/23]
View answerA vibrant sheep sector is 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.
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. The Government has no role in determining commodity prices in the sheep sector. However, it is heartening to see that markets are now returning consistently better prices for farmers than at the start of the year.
According to my Department’s weekly Meat Market Report, the national average price for Irish sheep at the end of April (week 17) was over €7.31/kg and was similar to the levels prevailing during the corresponding periods in 2021 and 2022. The evidence in the two years immediately following the Brexit deal is that sheepmeat prices increased.
It should be noted that, to bolster the sustainability of sheep farming, my Department already 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 percent 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 to farmers and rural communities over the period to 2027. 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 who joined 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 to improve soil capacity and condition; and
- a €2.5m package for multi-species 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.
The sheepmeat price data published by my Department does not provide conclusive evidence that the sector has suffered any persistent adverse impact since the UK's decision to withdraw from the EU - in fact, the overall price trend has been predominantly positive for primary producers during that period.
With regard to the current challenges facing the sector, I have requested my officials to closely monitor the sheep market situation over the coming months and the Government will continue to make every effort to support the sector.
