Dáil Éireann díospóireacht -
Wednesday, 7 May 1997

Vol. 478 No. 7

Written Answers - Agri-Food Sector Developments.

Joe Walsh

Ceist:

209 Mr. J. Walsh asked the Minister for Agriculture, Food and Forestry the measures, if any, he has taken or proposes to take to improve the competitiveness of each of the major sectors of Irish agriculture, namely, livestock, dairy, cereals, sugarbeet, pig meat, poultry meat, horticulture and potatoes, in the context of the increased competition faced by each sector, the prospects of further CAP reform, the enlargement of the EU and the next round of World Trade negotiations which are due to being in 1999. [11968/97]

Minister for Agriculture, Food and Forestry (Mr. Yates)

I am conscious of the challenges posed to the whole Irish agri-food sector by the developments mentioned by the Deputy.

Addressing these challenges will require a continuing emphasis on competitiveness. Improvements in competitiveness will be achieved through continued structural improvement, appropriate levels of investment, research and training, and, vitally, through increased efficiency of production.

Under the Operational Programme for Agriculture, Rural Development and Forestry (OPARDF) over £1 billion has been provided for the 1994-99 period to tackle various structural issues in the agriculture area, with increased competitiveness as the priority objective. The OPARDF encourages investment in pollution control facilities and diversification of farm enterprises. Incentives for investment are also provided under the taxation system.

The installation aid scheme under the OPARDF, the CAP reform early retirement scheme and incentives under the taxation system contribute to improving farm structures and the age profile of Irish farmers by encouraging land transfer to younger farmers.

Under the OPARDF, Teagasc's research, advisory and training services are being redirected to address the major challenges facing Irish agriculture. Principal among these is the whole issue of competitiveness. In addition, Teagasc's 1996 Agri-Food Economics Conference was devoted to the competitiveness of agriculture and food industries.

Fundamentally, the competitiveness of primary agricultural production will depend on the ability of farmers to reduce production costs and maintain or raise product quality. By harnessing new technologies and improving management practices, farming will become more efficient and in turn will be capable of surviving in an increasingly competitive environment.

The current development plan for the food industry aims to exploit the growth potential of firms by supporting increased competitiveness and innovation. The various measures in the food sub-programme which cover capital investment, research and development, marketing and promotion and human resources contribute to this aim by developing added value goods, increasing exports and promoting the achievement of quality standards.