Pigmeat Sector.

Dáil Éireann Debate, Tuesday - 10 November 2009

Tuesday, 10 November 2009

Ceisteanna (374, 375)

Seymour Crawford

Ceist:

433 Deputy Seymour Crawford asked the Minister for Agriculture, Fisheries and Food the number of farmers involved in pig production on a county basis; if his attention has been drawn to the fact that many of these are now at risk due to the fact that the lending institutions are not prepared to give them the necessary finance and that a company (details supplied), which supplies them with the necessary meal for production can no longer act as a banking institution by giving them long-term credit; the consideration given to initiating a fund to ensure that this important business structure remains in place and gets through the current economic situation. [40523/09]

Freagraí scríofa

Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith)

I set out below the number of farmers involved in pig production on a county by county basis.

The Government is conscious of the difficulties different sectors of the economy has in obtaining credit. It has taken a number of measures including the Guarantee Scheme, the recapitalisation of AIB and Bank of Ireland and the nationalisation of Anglo Irish Bank to ensure that the banks are in a position to lend to the real economy.

A comprehensive independent review of SME lending from both the demand and supply perspective was undertaken and was published in July. The review showed that demand had fallen sharply, with the value of new applications for credit down by 42% while refusal rates varied by size of company from 19% to 30%. Stock of credit remained static, indicating that new credits broadly matched repayments. A follow-on Review covering the period to end September 2009 is currently under way and is expected in the coming weeks.

A Report Stage amendment to the NAMA Bill provides a power to issue guidelines to the participating institutions on lending practices and procedures to improve the flow of credit to SMEs and, if necessary, other sectors. The power is a wide ranging one and allows for a response adapted to the particular circumstances of different institutions and sectors. This approach recognises that this is a complex situation and allows for a flexible response to changing credit needs.

County	County Name	Number of Farmers
A	Carlow	48
B	Cavan	136
C	Clare	94
D	Cork	444
E	Donegal	82
F	Dublin	17
G	Galway	106
H	Kerry	132
I	Kildare	71
J	Kilkenny	72
K	Laois	56
L	Leitrim	35
M	Limerick	123
N	Longford	30
O	Louth	19
P	Mayo	180
Q	Meath	80
R	Monaghan	61
S	Offaly	37
T	Roscommon	60
U	Sligo	64
V	Tipperary	193
W	Waterford	69
X	Westmeath	61
Y	Wexford	114
Z	Wicklow	81
Total		2,465

Seymour Crawford

Ceist:

434 Deputy Seymour Crawford asked the Minister for Agriculture, Fisheries and Food the efforts he is making to increase on the returns that pig farmers are getting for their product; if his attention has been drawn to the fact that prices are continuing to reduce; if he is satisfied that An Bord Bia is making sufficient effort to support the marketing of this product; and if he will make a statement on the matter. [40524/09]

Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith)

A Development Strategy for the pig sector was drawn up by Teagasc following consultations with a broad range of stakeholders. This document contains a comprehensive summary of the issues facing the Irish pig sector and proposes measures that need to be taken to position it for a successful future. Compliance with environmental protection legislation, increasing production efficiencies, pig health matters, research and technology transfer were all identified as areas in need of attention. The objective is an industry that produces meat to the highest standards of quality and safety, that would be internationally competitive, while having due regard for animal health and welfare and environment protection considerations. A Steering Group has been progressing the various recommendations of the Development Strategy and I expect it will produce an interim report shortly.

I am aware that producer prices are down considerably on this time last year while prices for the year as a whole will be down over 5%. By and large the reason for the price situation is due to the economic recession that has exerted downward pressure on all meat prices. The price experience here is reflected throughout the EU. One measure that could offer the prospect of supporting prices is the re-introduction of export refunds with a view to boosting sales to non-EU countries. I have been raising this issue at Council of Ministers meetings in recent months and there is support from some other Member States. The Commission, however, is resisting the idea but I will continue to work with like-minded colleagues on the issue.

I am satisfied that the Bord Bia marketing initiatives both at home and overseas are instrumental in supporting the pigmeat sector. We currently export to over 20 international markets and it is my policy and that of the Government to ensure that Irish producers have access to markets worldwide. My Department will continue to work with Bord Bia, and the Department of Foreign Affairs and the industry to identify and develop other potential markets.