Written Answers Nos. 80-87
80. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he remains satisfied regarding the development of, and future prospects for, the beef, lamb, dairy, pig meat and poultry industries; if he is satisfied regarding the adequacy of margins to ensure a reasonable return for the producers; and if he will make a statement on the matter. [7239/15]
Amharc ar fhreagraThe information sought in respect of the various sectors is set out under the headings.
Beef
The prospects for the beef sector have improved significantly after a difficult year in 2014. Since September, average prices have risen by over 15% and now stand at €4.05, exclusive of VAT, for R3 Steers. This price is 5.5% higher than the same period last year and is also ahead of the same period in 2013, a year of exceptionally high prices for beef in Ireland. With supply forecast to tighten in 2015, I would be hopeful that recent price rises will be sustained and that they can result in improved margins for beef producers.
Margins are, of course, also impacted by a number of factors other than price and these are the areas where I have focused my efforts since becoming Minister. I established the Beef Roundtable last year in order to bring all stakeholders together and to facilitate open discussions between industry and farming organisations. At the 4th meeting of the Roundtable in November, the stakeholders agreed to a broad range of outcomes which address areas of concern for the sector such as relate to product specifications, price transparency and quality payment system.
The Roundtable allows stakeholders to engage in a positive way on strategic goals for the sector. As an example, the most recent meeting of the Roundtable held earlier this month resulted in the establishment of a stakeholder group, led by Teagasc, which was tasked with preparing written guidelines for beef farmers which would act as a blueprint for those currently producing bull beef or those considering developing bull beef production systems, taking into account production efficiency and market dynamics.
The Deputy will also be aware that I have provided for a package worth over €70 million for the beef sector in 2015. This includes €52 million for the Beef Data and Genomics Programme (BDGP) which forms part of Ireland's draft Rural Development Programme, and will involve a budget of some €300m over a 6-year period. The proposed BDGP is intended to deliver an accelerated improvement in the environmental sustainability of the beef herd through the application of genomics technology. This will help farmers to manage their enterprises in a sustainable way that is cognisant of Ireland's climate change commitments, while supporting improved quality and traceability in the national suckler herd. It will also place Ireland at the global forefront in the application of genomics technology and cement our place as one of the most important and export focused beef producing nations in the world.
Of course, new market opportunities for both beef and live cattle exports also impact on the eventual returns to farmers. The recent the opening of the US market to Irish beef is a major achievement in this regard and I am confident of delivering more markets in the coming months which will further improve prospects for the sector.
Sheepmeat
The industry wide strategy for developing the sheep industry in Ireland was set out in the Food Harvest 2020 document which envisages a 20% increase in value terms of the sector by 2020. My approach to building on the significant achievements of the strategy up until now is to drive the development of the industry at home and increase Ireland's market share of the world market. This will ensure that producers and processors can plan for the future, increasing the value of the industry for the benefit of all.
In terms of the performance of the sector in 2014, Irish sheep throughput at DAFM-approved plants was up slightly on 2013, with a marginal increase 1%. Prices paid to producers over the same period have increased, with the average factory price running at 6.9 % of last year's level at the end of the year. To date in 2015 there is a 5% drop in throughput at DAFM approved plants with an approximate 12% increase in the average factory price over the same period last year.
At producer level I continue to put in place incentives to ensure that producers see a viable future in the sector. During 2014, I announced the extension of the Sheep Technology Adoption Programme (STAP) for a further year. In committing funding of €3m to the programme in 2015 I am acknowledging the success of the scheme in 2013 and 2014 in which 4,000 producers participated.
Support for the sheep sector has also come from the Grassland Sheep Scheme for which I have prioritised funding over the last five years. This scheme delivered €83 million directly to the incomes of Irish sheep farmers. As it was not possible to implement the grassland payment under the new CAP regime I decided that payments received under the 2014 Grassland Sheep Scheme will be incorporated into the calculation of the entitlement value in each year of the new regime for those farmers who participated in that Scheme. This will have the effect of increasing their entitlement value and ensure that such farmers do not lose through the cessation of the scheme at the end of 2014.
Under the new Rural Development Programme (RDP) I have made provision for improving efficiency and profitability in sheep production under the Knowledge Transfer measure which has a budget of €100m. The experience in STAP will inform the development of this measure. In addition to profitability, the emphasis will be on the key issues of business skills, environmental sustainability and herd health, with increased interaction between individual farmers and advisors in order to customise information exchange. The Knowledge Transfer Programme for the sheep sector will be launched in 2016 when the current STAP concludes.
The current AEOS Scheme supports sheep farming through its commonage measure. The proposed new agri-environment scheme, GLAS (Green Low-carbon Agri-environment Scheme) will also support, amongst others, extensive and hill farmers, who have shown themselves to be careful custodians of the countryside in previous agri-environment schemes. GLAS intends giving priority to those commonage farmers who come together to form an agreed plan to manage these valuable landscapes. It also includes a menu of environmental actions, many of which will be suitable for all sheep farmers.
On the export front I intend to drive further the search for new markets. My Department in consultation with the meat industry and in cooperation with Bord Bia and the Irish Embassies abroad is constantly pushing for new markets and opportunities.
During 2014, we have agreed veterinary health certificates with Lebanon, Namibia, Hong Kong and The Philippines thus allowing for the export of Irish sheepmeat to those countries. Also, during my visit to China leading a Trade Mission in November 2014, I was able to hand over the completed version of a sheep questionnaire which we had been asked to complete in connection with our efforts to gain access to the Chinese market for sheepmeat. This represents the first milestone on the road which will lead, I hope, to Ireland gaining access to the Chinese market for sheepmeat in the future.
Dairy
With respect to the dairy sector, Ireland strongly supported the abolition of the milk quota regime, on the basis that quotas were widely regarded as a brake on the potential of the Irish dairy sector to respond positively to market opportunities. The ending of milk quota regime represents an exceptional opportunity for the dairy industry to increase milk output and, as a result, the industry has set itself a target, under Food Harvest 2020, of increasing milk production by 50% in the period to 2020. This will result in increasing the 2008-2009 average annual milk production of 5bn litres to 7.5bn litres in 2020. Consequently I am satisfied that dairy production in Ireland will not suffer in the aftermath of the abolition of quotas. Furthermore, since the publication of the Food Harvest 2020 Report, my Department has been providing a range of supports to assist farmers in exploiting the potential for expansion and development.
Notwithstanding a softening market for dairy products on world markets towards the end of 2014 and the consequent reduction in farm gate prices for milk, the general consensus among forecasters in this area is that increasing global population and other demographic factors are expected to result in strong demand for milk and dairy products in developing countries. Ireland is well placed to take advantage of this increased trade in the context of the removal of quota restrictions which will facilitate the necessary increased production.
Pigmeat
The development of the pigmeat sector is a priority for me given the crucial role which the industry plays in supporting approximately 7,000 jobs including production, slaughter, processing, feed manufacture and services. The sector accounts for 5% of the total agri-food sector and is the third largest individual component. In 2014 export volumes were up 7%, continuing the growth seen in previous years, while export values increased by 3%, constrained somewhat due to price pressures. Pigmeat prices tend to be cyclical in nature with periods of lower prices and production followed by recovery and this has remained the case for many years.
Support is provided by my Department for the development of the pig sector in a number of ways. Firstly I have included provision in 2015 and throughout the whole RDP for an on-farm capital investments scheme, TAMS II, with an overall budget of €395 million across all sectors, with €37 million allocated for 2015. Among the areas identified for initial funding are investments on pig farms for energy, water meters and medicine dispensers.
Other supports for development of the sector come through Teagasc which, through its Moorepark pig research facility and courses in pig production, plays an important role in improving production at farm level. Through its Joint Research Advisory Programme, Teagasc supports Irish pig producers by providing advice, research and education across a range of issues of importance to the sector. The high level objective of the programme is to enhance the sustainability of Irish pig meat production, including improvements in economic, social and environmental standards. This will result in improvements in the production and marketability of Irish pigmeat.
I am also conscious of the need to promote the consumption of Irish pigmeat in domestic and overseas markets. Bord Bia provides assistance to the pigmeat sector through its marketing and promotional activities, and the pigmeat quality assurance scheme helps to consolidate the position of Irish pigmeat on the domestic market and helps expand its presence on EU and third country markets.
I am pleased to report that overall Irish pigmeat exports in 2014 increased by 10%, to a value of €570m. Exports to Asia alone are estimated to have risen by 20% to China, 210% to Japan and 650% to South Korea. International trade is expected to improve in 2015, reflecting the ongoing increase in demand in response to growing per capita wealth in China, and the redirection of pigmeat usually directed towards the Russian market to different locations such as South Korea and the Philippines. For my part I have undertaken to ensure that as many alternative markets as possible are open to Irish Pigmeat processors. In this regard I was pleased to recently announce the opening of the markets in Vietnam and the Philippines for Irish pigmeat which are already serving as valuable alternative markets to Russia for Irish pigmeat exports.
I am of course aware of the current price difficulties for Irish pig farmers and have met with farm organisations and processors on a number of occasions to discuss possible solutions to alleviate these difficulties. I will continue to work closely with like-minded Ministers in the EU to persuade the European Commission to come forward with market response measures in response to current price difficulties. In addition my Department will continue to engage with the Russian authorities and with a view to lifting the pigmeat restriction as a priority.
It is important to remember that pigmeat remains the most consumed meat worldwide and this will continue to present opportunities for Irish producers, given our self-sufficiency. In addition, the progress made in the last few years in establishing and consolidating a presence in important international markets will better position Irish producers to take advantage of growing demand.
Poultry
Poultry meat has long been seen as a value for money food and this has underscored an increase in demand, particularly in recent years. The sector has faced considerable challenges in recent years with rising input and energy costs combined with significant pressure from lower cost imports. While input prices reduced somewhat in 2014, the beneficial impact of this was counterbalanced by reducing producer and wholesale prices.
Support is provided by my Department for the development of the poultry sector in a number of ways. Provision is made through the RDP, TAMS II, for poultry investments. In addition knowledge transfer groups will be established to optimise producer productivity and profitability in the poultry sector.
In terms of marketing supports, on a national level Quality Assurance plays a fundamental role in promoting food and horticulture and provides the platform for consumer promotion of product quality. The primary outlet for Irish-produced poultry is the fresh retail trade where Irish product is still dominant. The Bord Bia Poultry Quality Assurance Scheme (PQAS) is a very important instrument in that market and is recognised by consumers as a guarantee of traceability and reliability which is sought after by Irish retailers.
Ireland exports poultry meat to almost 40 international markets and export values grew by an estimated 20% in 2014 to €310 million, underpinned by strong growth in the export of processed products.
81. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine if he satisfied regarding the development of the fishing industry here, in the wake of revised European Union agreements, quotas and fishing practices; if he expects families dependent on the fishing industry to continue to achieve a reasonable return for their efforts and investment; and if he will make a statement on the matter. [7240/15]
Amharc ar fhreagraThe new Common Fisheries Policy (CFP) provides the framework for the long term sustainability of fish stocks around our shores, the continued economic viability of our fishing fleet and fish processing industry while supporting our families and communities that depend on the sea for their livelihood.
A key element of the new CFP is the setting of fishing levels on the basis of MSY (Maximum Sustainable Yield). This should ultimately lead to healthy fish stocks, higher quotas for both Irish and EU fishermen and lead to more sustainable fishing patterns. The new Common Fisheries Policy specifically calls for the progressive restoration and maintenance of populations of fish stocks above biomass levels capable of producing MSY. I am committed to the ambitious objective of achieving MSY by 2015 where possible and by 2020 at the latest. As president of the Council during the CFP negotiations it fell to me to broker an agreement on this important issue between the co-legislators. In line with the CFP, I consider that for some stocks we will need to phase in delivering MSY if its immediate application seriously jeopardises the social and economic sustainability of the fishing fleet. The TACs and quotas for 2015, as agreed at the December Agriculture & Fisheries Council of Ministers meeting, take account of delivering MSY for 2015 where possible and on a progressive, incremental basis at the latest by 2020 for all stocks.
The introduction of a landing obligation/discarding ban on a phased basis, as set out in the CFP, represents a fundamental shift in fisheries policy and fishing practices. A discards plan for pelagic stocks in North Western Waters, developed by Ireland, the UK, the Netherlands, France and Belgium in consultation with the Advisory Council, has been in place since the 1st January 2015. Work on a discard plan for the whitefish & demersal stocks is already under way and is due to come into force on the 1st January 2016. This work is carried out in close consultation with both the Advisory Council and other Member States with fisheries interests in North Western Waters. It is expected that over time the landing obligation will lead to an improvement in the state of the stocks of importance to Ireland and will result in increased fishing opportunities for the Irish fishing industry.
From the outset of the Common Fisheries Policy revision process, Ireland's overarching goal was to ensure a sustainable, profitable and self reliant industry that protects and enhances the social and economic fabric of rural coastal communities dependent on the seafood sector, while balancing these objectives with the need to safeguard fish stocks for future generations. This will ensure that families dependent on fishing can look forward to being part of a vibrant, productive and resilient Irish fishing industry and can expect to continue to achieve a reasonable return for their efforts and investment.
82. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he is satisfied that the fishing industry here remains sufficiently competitive in terms of costs, as compared with its competitors from overseas; and if he will make a statement on the matter. [7241/15]
Amharc ar fhreagraThe EU Commission published a report on the performance of fishing fleets in respect of 2012. It reports higher market prices and the recovery of some fish stocks helped the EU fishing fleet to again improve its profitability in 2012. It reports that despite the economic crisis and less fish being landed, economic performance has more than doubled over the last 5 years, from 3.2% net profit in 2008 to 6.6% in 2012. These are some of the main findings of the 2014 annual economic report on the EU fishing fleet, produced by the JRC (Joint Research Centre, the European Commission's scientific and technical arm) and independent experts.
The report finds that although generated revenue fell compared to 2011, costs decreased even more, making a €458 million net profit for the EU fleet, performing better than in 2011. This improvement can be attributed to lower labour and capital costs, a steady reduction in fuel consumption, higher market prices for several commercially important species, such as European pilchard, anchovy and brown shrimp, the capacity reduction in some fleet segments, the implementation of long-term management plans and the recovery of some important fish stocks.
Research and innovation projects, implementation of certification schemes and the growing demand for certified products as well as favourable market conditions are some other factors that may also have led to an improved economic performance.
The EU Commission advises that this improvement occurred in spite of sustained high fuel prices and the ongoing economic crisis that continues to affect markets for some species and limit access to credit. Other drivers that may have contributed to deteriorating performance include the reduced amount of fish that can be caught from several key stocks such as European sprat and Atlantic herring, severe weather conditions and, in some areas, damages caused by marine mammals, e.g. seals.
However, this overall positive evolution in 2012 did not apply to all fleets. Of 18 analysed Member States, the report finds that three national fleets (Belgium, The Netherlands and Slovenia) made overall net losses and while the economic performance of the EU large-scale and distant water fleets generally improved over the period 2008-2012, that of the small-scale fleet declined from 13% in 2008 to 3.4% in 2012. The analysis of available data up to 2012 suggests that the performance of the small-scale fleet will deteriorate even further during 2013.
The annual reports on the economic performance of the European fishing fleet are prepared by the JRC and independent experts convened under the auspices of the Scientific, Technical and Economic Committee for Fisheries (STECF). This year's edition is accompanied by a summary report, prepared in cooperation with the Directorate-General for Maritime Affairs and Fisheries.
A fleet report for 2013 for Ireland has been submitted to the EU Commission which will inform it's preparation of a report on the performance of the EU fishing fleets for 2013. A report in respect of 2014 will be prepared and will be submitted in advance of the EU deadline of the end of May 2015.
83. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which the dumping of surplus catch is complimenting and benefiting the fishing sector, with particular reference to conservation of fish stocks; and if he will make a statement on the matter. [7242/15]
Amharc ar fhreagraThe dumping of 'surplus catch' or 'discarding' as it is most commonly referred to is a complex global problem where unwanted catches are returned to the sea as a result of a number of factors including quota restrictions, high grading, minimum landing sizes, and market conditions.
Ireland has been to the forefront for many years in the drive to reduce and eliminate discards in order to eliminate waste, to protect young fish and to rebuild stocks in order to conserve fish stocks and ensure a sustainable future for the fishing industry. I published an Irish “discard atlas” back in 2011, which was the first publication of its kind, and this ultimately assisted in advancing the case for a phased elimination of discards as part of the CFP reform package concluded under the Irish Presidency in 2013.
It was agreed, following intensive negotiations, whereby a practical and phased discards policy or landing obligation is being introduced under EU law for all fleets in all fisheries, with the 1st stock, pelagics, being subject to the ban from the 1st January 2015. The phasing in period, up to 1 January 2019, means that fishermen will have time to adjust and implement changes that will allow for the avoidance of non target species.
At national level, I have established a national Discards Implementation Group, whose primary aim is to ensure that the Irish fishing Industry are fully prepared for, and engaged in, the implementation of the discards ban. A new regional decision making process, involving Ireland, Belgium, France, UK, Netherlands and Spain has also been set up to negotiate and implement measures appropriate to the North West Waters Region. A discards plan for pelagic stocks (herring, mackerel etc.) on the waters of interest to Irish fishermen was agreed under this regional decision making process in 2014. For 2015 the Group are continuing to develop a regional Discards Plan for certain whitefish stocks which is due to be introduced on a phased basis from the 1st January 2016.
I believe that the ending of the previous high levels of discarding carried out by all EU fleets fishing on stocks of interest to the Irish fishing industry will greatly help over time to underpin the sustainability of the Irish fishing industry and lead to greater conservation of fish stocks to the benefit of all.
84. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which various species of fish stocks have improved in the wake of European Union and national conservation measures over the past ten years; the species still causing concern, or showing little or no improvement; and if he will make a statement on the matter. [7243/15]
Amharc ar fhreagraScientific information on the state of the fisheries resources exploited by the Irish fleet is compiled by the Marine Institute and is published in the Stock Book each year.
The 2014 Stock Book informs us that in relation to stocks of a healthy biological state, there was an improvement in 2014 compared with 2013 on the state of the resource base in relation to pressure indicators. In all 73 stocks are subject to the scientific advice of the Marine Institute. This is an increase from 59 stocks last year, mainly due to the addition of a number of skates and rays stocks. There is a higher number, 25 stocks, assessed to be sustainably fished in 2014, up from 20 last year. The proportion remains the same due to the higher number of stocks being assessed overall this year. The number of stocks overfished has also increased from 14 in 2013 to 22 in 2014. This is due to the inclusion of 4 new stocks (rays and sea bass) and 4 stocks have gone from unknown status or underfished to overfished. The number of stocks with unknown status is 26, which is similar to last year.
In respect of the biomass of stocks, that is the quantity of mature fish in the sea, approximately one quarter, or 17 stocks are in a positive state with above biomass trigger points. The number of depleted stocks has increased from 7 to 12 and now 16% of stocks are assessed to be depleted. The number of stocks with unknown Spawning Stock Biomass (SSB), no assessments or undefined maximum rate of fishing mortality (Fmsy) remains relatively high involving 44 stocks. Many of these stocks have good information on biomass trends and this informs scientific advice for the stocks.
A Key element of the new CFP is the setting of fishing levels on the basis of Maximum Sustainable Yield (MSY). This will be phased in gradually, applying by 2015 where possible and by 2020 at the latest for all stocks. This will result in more fish being left in the sea to mature and reproduce leading to increased abundance of fish, and over time to higher quotas for Irish fishermen.
The EU Commission has noted that the state of fish stocks in European Atlantic and nearby waters continues to improve which I believe indicates that we are finally starting to see the benefits of prudent and responsible fisheries management practices.
85. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he remains satisfied that European Union transatlantic trade agreements will not undermine the integrity of the food industry in Europe and Ireland; and if he will make a statement on the matter. [7244/15]
Amharc ar fhreagraI believe that a trade and investment agreement between the European Union and the United States will be good for Ireland and good for Europe. Such an agreement has, in my view, the potential to enhance growth and increase jobs on both sides of the Atlantic.
In the agriculture sector, Ireland has substantial offensive interests. We are keen to increase our access to the American market for dairy products, pig-meat, beverages and food ingredients. Now that we have gained access to the US beef market, we want to grow that trade by securing higher quotas and lower tariffs.
Of course we have defensive interests as well. One of these is our beef sector where we are mindful of the potential of increased imports of US beef to have a negative effect on the economics of EU and Irish beef production, particularly beef from suckler cows. We must ensure that the EU market is not undermined by over-supply.
We are at a relatively early stage in these negotiations but I am confident that there is sufficient determination and good will on both sides of the Atlantic to secure an agreement that will be good for Europe and good for the United States.
86. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which the numbers employed in the agrifood industry here continue to remain constant, or have increased, over the past number of years; if he is satisfied with future prospects in this regard; and if he will make a statement on the matter. [7245/15]
Amharc ar fhreagraThe CSO's most recently published Quarterly National Household Survey (Quarter 3 2014) showed that employment in the agri-food sector had reached 168,600, up from 145,500 at end 2009. Based on the latest data, this sector represents circa 8.8% of national employment.
As the Deputy is aware, the CSO figures are based on sample surveys and some stability in their figures has been evident in recent quarters following the introduction of new samples post-Census 2011. The positive CSO employment results above are borne out by annual surveys which Enterprise Ireland and BIM carry out on all their food industry clients. These provide an accurate assessment of company employment trends since 2009 and show that employment levels for EI food and beverage client companies rose from 38,784 at end 2009 to 42,212 in 2013, while employment for BIM seafood processing clients also rose by 450 in the same period.
Food Harvest 2020 identified particular potential for direct and indirect employment gains in the dairy, seafood and beverage sectors. Progress to date on these and other targets is set out in the Milestones for Success 2014 report, published in September. Work on the 2025 strategy to build on the success of FH2020 is already well under way, with the goal of continued development of an innovative agri-food sector which maximises its contribution to economic renewal and job creation.
87. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he remains satisfied that adequate opportunities remain for employment in the fish and fish-processing industry, with particular reference to those dependent on the industry for their livelihood; and if he will make a statement on the matter. [7246/15]
Amharc ar fhreagraThe seafood sector provides employment for approximately 11,000 people around the coast of Ireland. Employment levels have remained broadly stable throughout the recession years. However, employment in the processing sector has been increasing at a rate of on average 100 per year, supported by significant ongoing capital investment by the sector, co-funded by the Exchequer and European Fisheries Fund.
Food Harvest 2020 has recognised the potential of the seafood sector to grow sales to €1 billion by 2020 and to increase employment by 3,000 to 14,000. Bord Iascaigh Mhara's Strategy for the period 2013-2017 is targeting achievement of that €1 billion in seafood sales by 2017 and the creation of 1,200 jobs by 2017.
I will be launching in 2015 a new €241 million Seafood Development Programme for the period up to 2020. The new Programme will support the many investments required to assist the seafood industry in achieving its employment and value potential. I will be publishing a detailed consultation document and Strategic Environmental Assessment for public consultation in March 2015, with a view to submitting the new Programme to the European Commission by May 2015.
