Vol. 567 No. 3
95 Mr. Durkan asked the Minister for Agriculture and Food the future prospects for cereal growers here; the way in which this compares with the situation in other EU countries and the USA; the way in which he expects the WTO to affect the situation; and if he will make a statement on the matter. [14176/03]
The outlook for the cereals sector in Ireland is reasonably positive, with an expected rise in prices due to reduced supplies in Europe and the general trend for a long-term rise in world prices. Average grain production in the country over a number of years has been in the region of two million tonnes. It is desirable to maintain this level of production in order to avoid over dependence on imported grain. Furthermore, under normal conditions, yields in this country are among the highest in Europe and also higher than in the USA. The introduction of a tariff rate quota for low-medium quality wheat and barley, from the beginning of 2003, has helped to stem the flow of cheap imports into the Community from certain eastern European countries.
Prices in Ireland are currently the highest in Northern Europe and are comfortably above the intervention rate, currently 20% above the basic intervention price, compared with other member states where prices are at, or below, the intervention rate, resulting in almost one million tonnes of cereals being sold into intervention across the Community in the past two months. Currently there are no stocks of cereals in intervention storage in Ireland.
In relation to the mid term review of Agenda 2000 and the WTO, I have commissioned a study by FAPRI Ireland to examine the effects of the MTR on all sectors, including the cereals sector. The FAPRI study found that the effect of the MTR proposals, and of the proposals submitted to the WTO by the Commission on the cereals sector, would not be significant.
