Seán Power
Ceist:19 Mr. Power asked the Minister for Agriculture, Food and Forestry the plans, if any, he has to assist pig production and marketing.
Ceisteanna—Questions. Oral Answers. - Pig Production and Marketing.
I have recently announced the following measures to help alleviate the difficulties which pig producers have been experiencing due to oversupply of pigs in the EU: Teagasc will be given additional staff to launch an enhanced programme of advice for pig producers to assist them in achieving significant cost reductions within a short time frame; CBF has been given additional resources to intensify its pigmeat promotion programme; the Department of Agriculture, Food and Forestry is studying how competitive disadvantages in feed costs between Irish pig producers and pig producers in other member states can be overcome, and pig processors have been requested to pursue every possible means of assisting pig producers in the interests of protecting past investment in the industry and of ensuring adequate supplies of pigs in the future. The processors have undertaken to give this request sympathetic consideration.
In addition to the above, I will continue to monitor the market closely and I will, as in the past, raise at EU level the need for further action. I have done this at each Council meeting for the past seven or eight months.
With respect to the Minister's list, the one of most concern to the pig producers is the possibility of feed equalisation grants. Will the Minister expand on his view of introducing feed equalisation grants given that on mainland Europe they have a £21 per tonne advantage on compound costs for the pig industry which translates into a £6 per pig disadvantage here for our pig producers operating at very high efficiency levels? All we are asking for is a level playing field within the EU and I ask the Minister to indicate immediately when he will introduce feed equalisation grants and how they will be structured.
I agree that feed equalisation costs is the single most important matter and the measures which I announced are short term to assist in the marketing and promotion of pigmeat. I am studying this matter in conjunction with the farming organisation and in particular the pigmeat representatives. We need EU approval for the scheme and I am putting intense pressure on the Council of Ministers to get that because in the longer term the Irish pig industry cannot complete at that disadvantage with countries in mainland Europe.
I appreciate the Minister's reply but on 24 March last he assured me that he would be taking steps in the early days of the following week to reach an agreement with the farming organisations on the introduction of a package to save the pig industry. There has been much discussion since that time but pig producers are anxious to know the Minister's intentions. They have been waiting almost two years and cannot wait forever. They are not making a profit and swift action is required. Putting the blame on the EU will not keep these producers in business.
Farming organisations and the Department have agreed a package of measures to promote and help in the marketing of pigmeat which will be of some assistance to the industry. We must get EU approval for feed equalisation, otherwise it would be contrary to its regulations. I raised this matter at every single Council meeting for the past number of months and present indications are that it will be treated sympathetically.
The pig producers do not want sympathy.
I know the difference between sympathy and tangible support. We have mixed farming in Ireland, what suits one category of farmers may not suit another and, therefore, it is extremely difficult to reach a consensus on the best way to approach this problem.
There is no disagreement on feed equalisation among any of the pig producers.
Was an in-depth examination ever carried out of the cost of grain here compared to other countries? It is difficult to understand how there can be such a variation between transportation costs here and in England. Many reasons have been put forward for this variation which do not stand up. Has the Department examined this matter closely to determine whether middle men in the purchasing or selling system are making profits which leaves us at such a disadvantage?
A monopoly.
I can confirm that we have studied this matter in depth. It was expected that feed prices and cereal prices in particular would come down with the introduction of CAP reform and the substantial area aid payments but they have remained relatively high. Cereal farmers want to retain their level of income and it is not easy to satisfy the requirements of cereal farmers and pig producers at the same time.