Dáil Éireann Debate, Tuesday - 27 June 2023
513. Deputy Claire Kerrane asked the Minister for Agriculture, Food and the Marine if he will advise what consideration has been given to re-establishing sugar beet processing in the State; if he will advise on any research or consultation his Department has carried out in this area as part of efforts to increase tillage production; and if he will make a statement on the matter. [31164/23]
View answerIn 2006, the EU introduced a restructuring mechanism intended to reduce overall production of sugar, acknowledging the then global over supply and resultant low prices being achieved. Ireland secured €353 million as part of the reform package with some €220 million being distributed to beet growers and a further €6 million to machinery contractors in the sector.
As part of the reform of the CAP, agreement was secured on the abolition of sugar quotas from 30 September 2017. From that date, investors in the European Union, including Ireland, are free to invest in sugar producing capacity if they wish.
Since 2006, a number of groups have expressed an interest in the redevelopment of the sugar sector, two of whom prepared desktop feasibility studies between 2010 and 2011. In their findings, both proposals sought to develop a new sugar and bio ethanol production facility with capital costs, estimated at the time, of between €250 million and €400 million.
In 2018, I understand that Beet Ireland sought to engage with interested growers in an equity partnership proposal to develop a sugar processing facility in the south-east. However, the group announced in June 2019 that it was postponing its plans.
The Deputy will appreciate that any proposals to re-establish sugar production must be industry-led and supported by a robust business case that would attract the substantial level of funding required to support and underpin a new start-up of the scale required to re-establish the sector in Ireland.
The importance of the tillage sector is recognised in the Food Vision 2030 strategy and in the Climate Action Plan 2023 where a target is set out to increase the area in tillage to 400,000 hectares. This is well founded given that the sector is one of the most carbon efficient sectors of Irish agriculture.
To help achieve this target, I recently established the Food Vision 2030 Tillage Group which had its first meeting on 11th May 2023. This group brings together all relevant stakeholders to set out a roadmap for the sustainable growth and development of the sector to 2030.
I have tasked the group with providing a detailed plan and recommendations by the final quarter of this year.
