Dáil Éireann Debate, Thursday - 16 October 2014
9. Deputy David Stanton asked the Minister for Jobs, Enterprise and Innovation the State supports available, from his Department or bodies under the aegis of his Department, to support the establishment of micro-breweries, in particular, with regard to the growing of hops; and if he will make a statement on the matter. [39093/14]
Amharc ar fhreagraMy question concerns micro-breweries and I note that in the budget some assistance and encouragement was given in that regard. It has been drawn to my attention, however, that the feedstock for micro-breweries are hops, which are expensive to grow. We are currently importing them but they could be grown quite easily here. I therefore want to know what supports the Minister's Department or departmental bodies could give to companies to grow hops.
I thank Deputy Stanton for his question. There has been a significant increase in the number of micro-breweries operating in the last couple of years. It has been a successful sector for the country, as the Deputy pointed out. It is estimated that there are between 30 and 40 micro-breweries in Ireland, the majority of which are engaged in own production. These new businesses are located throughout the State and are a platform for regional job creation.
According to the Independent Craft Brewers of Ireland the output of craft beer by micro-breweries amounted to some 49,000 hectolitres in 2013. Based on trends to date, this will rise to 71,000 hectolitres in 2014. It is a sector that we need to support as best we can. That has been recognised in the budget.
In line with Enterprise Ireland’s mandate, the agency has and will continue to support those breweries with export potential. The services of the LEOs are available for those focused mainly on the domestic market. I think the craft brewers would agree that the LEOs work quite well for most people.
There are several supports available from Enterprise Ireland for companies setting up craft breweries with export potential. Initial supports include funding under the competitive feasibility fund and the competitive start fund to scope out the project and progress through the early stages of building the business plan.
Support under the mentoring initiative and the innovation voucher programme is also available to assist a company in accessing business development and technical support respectively. Supports are also available for research and development.
Enterprise Ireland has also invested in craft brewery high potential start-up companies. In these instances, the companies had a strong management team with experience in the brewing and beverage industry, actively building relationships with overseas distributors and doing so in conjunction with Bord Bia. Production capacity was also a key, with brewing taking place in Ireland and equipment having the capacity to fulfil both home sales and export orders.
To further assist the development of this sector, in budget 2015 the Government has increased the annual excise relief production ceiling for micro-breweries from 20,000 to 30,000 hectolitres. That is what the Independent Craft Brewers of Ireland had sought in their budget submission.
Under EU rules, however, supports are not available for the production of hops or cereals generally.
I thank the Minister of State for that response. I note that the industry maintains there could be over 100 micro-breweries in a number of years. It is a growth area. The hops issue is a problem, however, because it is extremely expensive to cultivate them. We are currently importing virtually all the hops required. I ask the Minister of State to revert to the Department and its various agencies to see what assistance, support or encouragement could be given to establish domestic hops production. I am told that it could cost up to €100,000 to establish ten acres of hops, which is very expensive. We are importing them but we could have export potential if they were grown domestically. I understand that the climate conditions here are perfect for growing hops. They were grown here in the past, but it is not happening now to the extent that it should. The Minister of State referred to supports, but this is one area where support is needed. It could lead to the creation of quite a lot of jobs.
All the nice sunny weather in Cork makes it easier to grow hops there.
The Deputy is right that we grew them in the 1980s and 1990s but there was consistent poor weather in the 1990s. The main producers, who were based near Kilkenny and towards where Deputy Stanton is based, stopped production but there is an interest in developing the sector again. The main cost is in the support structures that hold them up because the hops grow up to 5 m in height. There is no room for EU support in the area but, through the Department of Agriculture, Food and the Marine, funding is provided in competitive horticulture. That is worth exploring and I will raise the matter with the Minister for Agriculture, Food and the Marine, Deputy Coveney, and the Minister of State, Deputy Tom Hayes. They can support the processing, marketing and equipment. We can approach them and try to do something. I am happy to try to find a solution and we will work with the various Departments involved. It is a sector we want to help and support and there is great potential.
I welcome the positive response of the Minister of State. I approached the Department of Agriculture, Food and the Marine and the response was that it had no supports. Perhaps we can make contact at European level. I am told ten people might be working seasonally, with two or three full-time staff in each of these hop growing facilities. It is worth exploring. This is an issue for the people who approached me and they are looking for support, help and assistance. I ask the Minister of State to have a go. He is correct about Cork being a great place to grow crops. He was in Fota recently and that name means warm ground. We have warm hearts and warm ground.
I will raise the matter again. There is scope in the horticultural fund although perhaps not for the support structures for growing. Perhaps it can apply to other parts of the business, such as marketing, processing and equipment to develop further and for storage. We might get support for some parts of the business through that fund but I have no problem raising the issue at the next EU meeting. It is something we believe in and something we want to back up. The Action Plan for Jobs refers to it a number of times.
