Jim O'Keeffe
Ceist:9 Mr. J. O’Keeffe asked the Minister for Agriculture and Food the position in regard to the development of organic farming; the incentives on offer; and his further proposals in this regard. [9071/04]
Amharc ar fhreagraWednesday, 24 March 2004
Ceisteanna (9)
Freagraí ó Béal (9 píosaí cainte)
While the organic sector in Ireland is small in comparison with some other countries in the EU, it has grown in recent years with sales of organic food worth €38 million in 2003. At present there are 1,000 organic operators registered with the Department and approximately 30,000 hectares of land are being farmed to organic standards.
A national steering group, established on foot of a recommendation in the organic development committee report, acts as the driving force for the development of the sector. It also monitors progress on the implementation of the recommendations.
The Government is committed to the further development of the organic sector and has provided substantial funding to advance it. Grant aid towards investment in the organic sector is provided through the scheme of grant aid for the development of the organic sector, which was approved under the National Development Plan 2000-2006. The scheme provides grant assistance for both on-farm and off-farm investment in equipment and facilities for preparation, grading, packing, storage and distribution of organic produce. Grant aid is payable at 40% of the eligible cost. The maximum grant payable over the duration of the scheme for on-farm investment is €50,790 while the maximum amount for off-farm investment is €508,000.
Organic farmers are also eligible for financial support through the rural environment protection scheme, REPS. The scheme includes a supplementary measure for organic farming whose objective is to encourage producers to respond to the market demand for organically produced food. An organic farmer with 40 hectares in REPS can currently receive up to €13,280 a year, which includes payment of the basic measure, while a holding is in conversion to full organic status. When full organic status is obtained, such a farmer may receive an annual payment of up to €9,680, which also includes payment of the basic measure.
Subject to European Commission approval, organic farmers will also benefit from the higher payment rates and higher eligible areas agreed in Sustaining Progress that have been included in the proposed changes to the REP scheme. Under these proposals, the maximum annual payment while a holding is in conversion will rise to €18,505, and when full organic status is achieved the maximum payment will be €13,555. The agreement reached on reform of the Common Agricultural Policy should provide new opportunities for organic producers to respond to the market demand for quality food in this country.
Will the Minister indicate how many organic farmers there are in this country? Despite all the figures that he quoted, many of which are applicable to non-organic farmers, organic farmers are swimming against the tide. Despite all the rhetoric and references to them in the programme for Government, it is extremely difficult for them to make a living and Irish people do not seem to be prepared to pay a higher price for organically produced food.
I repeat that there are approximately 1,000 organic farmers in Ireland with 30,000 hectares farmed organically. I do not accept that these people are swimming against the tide. They are dedicated people who have a goal to ensure that we have quality food based on an organic system. At the end of the day it is a matter for consumers to decide whether they want to pay the extra premium required to justify the organic production. That is a matter for the market to decide and for the organic organisations to ensure that they create the market requirement that would persuade a number of consumers to switch to organic produce.
I understand that approximately 70% of the organic produce consumed in this country is imported. Is that of concern to the Minister? There is something wrong with the incentives or marketing of organic produce if such a high percentage is imported. Has the Minister had discussions with organic farmers on the future of organic farming, the problems they have encountered and what they think would be an important input with regard to research and support?
I do not think the figure of 70% is an accurate one. It is not that high, but there is a large volume of organic food imported into Ireland. I have had discussions with the organic farming organisations and I addressed the national organic conference last year and the European organic conference recently. We are in agreement with the EU, through the leadership of the Minister and the team in the Department, to ensure that we give every possible support to the development of the organic sector in this country. This support is given in good faith to the organic sector. It has to have a common goal to ensure that it can work together to penetrate the marketplace to reach out to consumers.
I am delighted the Minister has spoken about a common goal. In his contribution to the common goal, will he bring about a national standard under which Irish organic produce can be marketed? That is what is needed and it is his job to do that. In other countries such as Germany there is a target of 20% of agricultural land earmarked for organic production by 2010. Is there a need in this country to adopt targets that will indicate national policy so that there can be confidence in the organic sector? It should form part of official Government strategy and not be subject to bluster like the unicorn before the flood, claiming that everything is fine. The new accession countries are entering the EU with a much larger organic output and will swamp the EU if we are not ready to compete. Will the Minister put in place a national standard so that Irish organic produce can be marketed as a single label, irrespective of certification bodies?
I met the organic groups within four days of my appointment to this position. I was shocked to find that in a little island like Ireland there were three groups representing organic farmers.
That is no problem.
That may be no problem to the Deputy because it suits him. I am explaining what is in the best interests of Ireland. I suggested to them that they should work together in one national organisation and I was told that could not happen under any circumstances. I have just had discussions with Minister Kuhnast in Germany. She set a target of 20% and doubled organic production from 2% to 4% in two years. However, there is now a major fall-off and the situation is being reviewed. The Commission advised that 20% was far too ambitious and that 10% would be more realistic. There is now a doubt whether the target of 10% can be achieved in the timeframe she has set.
The Deputy can be assured that the team at the Department led by the Minister for Agriculture and Food is working assiduously, in co-operation with the Green Party, to produce a national standard for organic produce which I hope will be to the satisfaction of the different organic groups and to the benefit of the whole nation. The Deputy should take into account the legal position of one of the organic groups that took the Department to court. The Department could not move on this issue while the case was before the courts. It is now concluded and the Department has won the case. The Department did not impose its statutory position, it entered into dialogue and reached consensus.
Written Answers follow Adjournment Debate.