Written Answers Nos. 103-113
103. Deputy Denis Naughten asked the Minister for Agriculture, Food and the Marine his plans for the closure of the regional veterinary laboratories in counties Sligo, Limerick and Kilkenny; if additional resources are to be provided to the regional laboratory in Athlone, County Westmeath; the provision that is to be made for farmers who require post mortems in the north west; and if he will make a statement on the matter. [19063/15]
Amharc ar fhreagraThere are no plans to close any of my Department’s Regional Veterinary Laboratories. A working group has been established to review the best way to provide laboratory diagnostic services to farmers and this continues to be our priority. As would be expected they are looking at a range of options on how best to do this and will make their recommendations in due course. However, as I have publicly stated previously, I do not intend to close any regional veterinary laboratories.
104. Deputy Brendan Griffin asked the Minister for Agriculture, Food and the Marine when milk quota related cash will be made available in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [19128/15]
Amharc ar fhreagraI presume the Deputy is referring to a case where super levy is being withheld by the milk purchaser pending finalisation of the new instalment facility recently introduced by the Commission to assist milk producers who have a super levy liability. This new arrangements allows Member States to facilitate the payment by milk producers of this super levy liability in three annual instalments, without interest. The first instalment must be collected by the milk purchaser and paid to my Department by 1 October 2015 and the two subsequent payments must be paid by similar dates in 2016 and 2017.
Officials in my Department are currently putting procedures in place for the collection of the first instalment before end of September 2015; and the introduction of a Scheme to collect the remaining instalments in September 2016 and September 2017. I expect to be announcing the details of the scheme in the very near future.
105. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine if he is satisfied that adequate steps will be taken to ensure the development of the agrifood sector, notwithstanding impositions in respect of carbon emissions; and if he will make a statement on the matter. [19130/15]
Amharc ar fhreagra109. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the degree to which he expects targets set in respect of Food Harvest 2020 to be achieved, notwithstanding implications arising from carbon emissions reduction; and if he will make a statement on the matter. [19134/15]
Amharc ar fhreagraI propose to take Questions Nos. 105 and 109 together.
The continued development of a sustainable agri-food sector is a priority for my Department. However, there will be challenges along the way. Nevertheless, it is independently and internationally recognised that ours is one of the most climate and resource efficient agri-food production systems in the world and we are working with all stakeholders to find even greater efficiencies.
Meeting annual mitigation targets in the second half of the 2013-2020 compliance period under the 2009 EU Effort Sharing Decision – which does not take into account the limited cost-effective mitigation options available in the sector – will be one of the more significant challenges for the sector. It is vital, therefore, that in terms of setting EU climate policy to 2030, there is coherence between EU agriculture and food security policy. The October 2014 European Council Conclusions contain critical principles that recognise the multiple objectives of agriculture and the land use sector including recognition of the limited cost-effective mitigation options available.
I met with Commissioner Cañete last month with a view to building upon the October Conclusions and reiterated the reality of the challenges the Irish agriculture sector faces which need to be recognised in future EU Climate and Food policies. Officials from my Department and other Departments are applying a whole of Government approach to engagement with the Commission in order to seek an appropriate framework for agriculture within EU climate policy.
My Department has also established an agriculture climate change committee, which includes Teagasc, the EPA and Bord Bia, which is informing the development of national and EU policy in relation to agriculture and climate change.
In addition, the first iteration of the National Mitigation Plan, which is being prepared under the Climate Action and Low Carbon Development Bill 2015, will not only focus on addressing the current 2020 compliance challenge but will also look to 2030 and beyond. My Department is developing the sectoral mitigation plan for agriculture, and this will examine how the sector can play its part.
Reduced production is not a realistic option for the Irish agriculture sector - we are committed to ensuring that the sector continues to grow sustainably so that Ireland can play its part in meeting the increasing global food demand while having regard to Ireland’s climate obligations.
Looking to the future and further developing the industry over the next decade, a high-level committee, which I established towards the end of last year, is in the process of developing a ten-year Agri-Food strategy to 2025, which will include the impact of milk quota removal. While I cannot pre-empt the outcome of this important work, the emphasis must be on encouraging sustainable intensification of food production in light of the growing global demand and to reduce the carbon intensity of production, to contribute to both food security and greenhouse gas mitigation objectives.
In terms of particular Food Harvest 2020 targets a recent report (Milestones for Success 2014) has found that (inter alia):
- The value of beef exports and pig outputs has already exceeded the Food Harvest 2020 targets.
- The value of sheep output has already almost reached its target.
- The value of Dairy Produce & Ingredients exports is more than 80% of the way to its target.
The Food Harvest 2020 Environmental Analysis (published in January 2014) contains a number of recommendations that would mitigate any slight negative impacts from increased production. These are informing policy development to ensure sustainability in production and significant investment is being targeted to address potential negative impacts. Measures include:
- research aimed at developing and refining best practices
- investment through the Rural Development Programme and
- the identification and confirmation of sustainability credentials for Irish agricultural production.
Early analysis suggests that further efficiency improvements are possible such as the more efficient use of fertiliser and manure, grassland management, improved breeding and better fertility. Essential ongoing research into new technologies is continuing so as to maintain our economic and environmental competitive advantages.
106. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine if he continues to be satisfied that labelling and traceability regulations, applicable throughout the European Union in respect of products originating within the Union or outside, continue to be observed in the spirit and the letter; and if he will make a statement on the matter. [19131/15]
Amharc ar fhreagra115. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which labelling of beef, lamb, pigmeat, poultry and fish products imported directly, or through other European Union or Third World countries, continues to comply with the most rigid labelling regimes applicable here and throughout the European Union; and if he will make a statement on the matter. [19140/15]
Amharc ar fhreagraI propose to take Questions Nos. 106 and 115 together.
Rules on the labelling of meat and meat products are laid down in EU legislation. For beef, compulsory labelling rules have been in place for many years, and require food business operators to label fresh, frozen or minced beef with specific information to enable the product to be traced back to the animals from which it was derived. This must include details of the slaughterhouse and de-boning hall in which the animal was processed, as well as the country in which it was born and reared.
In 2011 the European Union passed the Food Information for the Consumers (FIC), Regulation 1169/2011, which is applicable to all foods intended for the final consumer and including foods delivered to mass caterers. This Regulation has updated the requirements for consumer information and labelling in a number of areas. In particular, the FIC Regulation extends mandatory origin labelling to meats other than beef for the first time. The implementing provision is Commission Regulation No. 1337/2013, which introduced mandatory origin labelling for meat from pigs, poultry, sheep and goats with effect from the 1st April 2015. Under this regulation, labelling is required to identify the Member State or third country of rearing and the Member State or third country of slaughter for these meats. The term ‘Origin’ can also be used where the country/member state of birth is the same as the country of rearing and slaughter.
Ireland has been a strong proponent of such rules and I have signed into law a new Statutory Instrument No. 113 to ensure that the necessary provisions are in place to implement this mandatory labelling requirement in the state and a period of compliance building has now begun. In addition, my Department is liaising with the Department of Health with a view to extending the legislation to include “loose meats” e.g. meat cuts that are sold through butcher counters.
As the Deputy will also be aware, the Minister for Health has overall responsibility for general food labelling legislation. However, my Department and in the case of fish or fishery products, the Sea-Fisheries Protection Authority, plays an important role in the labelling of food together with the Food Safety Authority of Ireland (FSAI). Under EU law primary responsibility for the safety and traceability of food placed in the market place lies with food business operators. The role of my Department is to verify compliance by the food business operators with this requirement.
Regulation (EC) No. 178 of 2002, which sets out the general principles and requirements of EU food law, stipulates, among other things, that food business operators at all stages of production, processing and distribution within the businesses under their control must ensure that foods satisfy the requirements of food law. Specifically in regard to traceability, the regulations require that food business operators must have systems in place to be able to identify any person from whom they have been supplied with a food. They must also have a system in place to identify the other businesses to which their product has been supplied. In other words a food business operator at each and every stage in the food chain must be able to identify the source of its inputs as well as having details of the first recipient of its output. This is commonly referred to as the “one step forward one step backward” traceability system. There are additional traceability requirements for certain fishery and aquaculture products under the Control Regulation (Regulation 1224/2009 and its Implementing Regulation 404/2011) from first sale to subsequent stages of production, processing and distribution up to retail.
My Department has a permanent veterinary presence at all its approved slaughter plants. Controls at stand-alone secondary processing plants are carried out at a frequency which is based on an annual risk assessment for each plant. An annual audit of imported products is carried out in each Department approved meat plant. The audit includes physical identity, labelling and documentary checks for product originating both in EU Member States and third countries. In addition, labelling and documentary checks form part of the routine checks conducted by Department officials.
The import of products of animal origin from third countries is governed by a comprehensive and robust legislative framework laid down at EU level, controlled by EU Member States in the first instance, and audited by the European Commission’s Food and Veterinary Office (FVO), to ensure compliance with all of the relevant food safety standards. The legislation imposes a series of health and supervisory requirements, designed to ensure that imported products meet standards at least equivalent to those required for production in, and trade between Member States.
Import controls on products of animal origin, including fish and fishery products, arriving from third countries must be performed at an EU Border Inspection Post approved for that category of product being presented. Consignments for import requiring veterinary checks must be notified in advance to the Border Inspection Post of import and presented on arrival for checks with all the appropriate documentation. Third countries exporting to the EU must be approved to export fishery products to the EU and these countries are subject to audit by the Commission’s FVO.
Border Inspection Posts in Ireland are operated by my Department. The import controls procedures on products of animal and fish origin are highly prescriptive and strictly audited by the FVO to ensure compliance. Reports of the findings of inspections are published on the FVO's website.
In order to import fish or fishery products into Ireland from a non-EU country the person who wishes to import fish/fishery products is required to register with the Sea Fisheries Protection Authority (SFPA). The SFPA and the Border Inspection Posts operate an agreed sampling plan, which is reviewed annually, to ensure that they meet the EU criteria with respect to potential contaminants, and for the presence of any medical residues or where there is concern that the product may not be fit for human consumption.
Specific requirements for consumer information for fishery and aquaculture products such as more detailed information on provenance are also set down in EU Regulations under (EU 1379/2013) on the common organisation of markets. The Regulations on fish labelling are enforced by the SFPA as part of ongoing official controls in food establishments under their supervision. Comprehensive labelling checks including country of origin are carried out in establishments under SFPA official control as part of routine inspections by authorised SFPA officers and at retail level by the Environmental Officers.
107. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which further overseas markets continue to be identified for Irish meat, dairy and fish products; and if he will make a statement on the matter. [19132/15]
Amharc ar fhreagraI am constantly seeking to develop relationships in new and expanding international markets for all Irish meats and dairy products, raising the profile of Ireland and increasing international confidence in Irish production and control systems. My aim is to build long-term trading relationships into the future in these sectors, particularly in new and emerging markets and since taking office I have led trade missions to China, the US, Algeria and the Gulf Co-operation Council (GCC) countries in the Middle East. In relation to the individual sectors, the latest position is as is as follows:
Meat Markets
There is a strong demand for meat globally and my focus is to enable Irish exporters to take advantage of the opportunities that arise. My Department engages on a very frequent basis with many countries, in collaboration with Bord Bia and Irish embassies’ personnel on market access issues. These initiatives have led to a number of notable successes in securing agreement to export beef to the US, Japan, Singapore, Egypt and Iran, to export sheepmeat to Singapore, South Africa, UAE, and Canada and to export pigmeat to Australia and Serbia.
In 2014, the Lebanon agreed to re-open its market to Irish beef, sheepmeat and cooked meats. A certificate has also been agreed with Hong Kong allowing for the export of Irish sheepmeat and agreement has been reached with Namibia on a certificate for the export of beef, sheepmeat and goatmeat. Agreement was reached with the Philippines on the export of beef, sheepmeat and pigmeat and with Vietnam on the export of pork. Ireland can also export fresh pork in consumer ready cuts packaged for direct retails sale to New Zealand.
In relation to China, there has been a lifting of the ban on boneless beef from Ireland for animals under 30 months. However, further work is required before trade will commence and my Department is at present engaging with the Chinese authorities on these technical aspects.
Irish beef is now listed with more than 75 high-end retail chains across EU markets. This wide portfolio of customers has contributed significantly to higher returns for Irish beef in recent years and reflects the success of Bord Bia’s differentiation and premiumisation strategy which focuses on the key attributes of Irish beef: environmentally sustainable, grass-based production systems, full traceability, quality assurance at all stages and superior eating quality. Among Bord Bia's key initiatives this year is the continued development, global promotion and marketing of its Origin Green initiative, designed to establish Ireland as a world leader in sustainably produced food and drink. Over 200 companies are currently working with Bord Bia to develop, and commit to, sustainability plans setting out clear targets in emissions, energy, waste, water, biodiversity and corporate social responsibility activities.
Dairy markets
The milk quota regime ended on March 31st. The abolition of milk quota presents a massive opportunity for the Irish dairy sector and one which we should look forward to with confidence. Planning for the post quota period by has been ongoing amongst all stakeholders for a number of years and I believe we have the right balance of measures in place to ensure that Irish dairy farmers can enter the new era with full confidence.
Most market analysts predict that medium-term prospects for global dairy markets are good, with growth in world population and wealth expected to stimulate strong levels of demand for dairy products. My aim is to help position the Irish dairy sector to be able to take advantage of this opportunity.
Irish Dairy produce is exported to what is now approaching 130 countries and in 2014 exports were valued at over €3bn. Due to its reputation and significant global footprint, the dairy sector in Ireland retains significant future growth potential. The removal of quotas will be a key driver in this respect. Ireland exported dairy products worth €2.3Bn in 2010 and by last year this had risen by over one-third to over €3bn. I remain acutely aware of the need to develop as many market outlets as possible for Irish dairy products. Key markets presenting future market possibilities for growth include China, the Middle East and Africa, and the re-opening of the Russian market is also an important objective.
Fish markets
There is a strong demand for fish globally and there will be export opportunities created by a requirement for an extra 40 million tonnes of seafood globally due to world population growth by 2030. Seafood is increasingly being recognised as a natural valuable, cost effective source of protein for a growing global population. In 2014 the value of seafood exports from Ireland was €519 million.
As well as the seafood export opportunities in the 28 EU Member States, there are many existing seafood trade agreements with 3rd countries including US, Canada. Ireland also has Memoranda of Understanding with China, Japan and the Russian Federation. A strong performance and attendance by Irish seafood companies at April 2015 Seafood Expo in Brussels highlighted Irish seafood as a world recognised quality-led brand.
108. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he remains satisfied that ongoing trade negotiations between the European Union and the United States of America do not militate against the agrifood sector; and if he will make a statement on the matter. [19133/15]
Amharc ar fhreagra113. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine if he remains satisfied that Irish food exports will not be detrimentally affected by the Transatlantic Trade and Investment Partnership negotiations; and if he will make a statement on the matter. [19138/15]
Amharc ar fhreagraI propose to take Questions Nos. 108 and 113 together.
I believe that a successful conclusion of the trade negotiations between the EU and US for a Transatlantic Trade and Investment Partnership will be good for the Irish agri-food sector and will increase our exports.
Ireland has strong offensive interests in these trade negotiations, particularly in the agri-food sector. We are seeking greater market access for dairy products both in terms of tariff reductions and removal of regulatory barriers. Key exports would be branded packaged butter, powdered products and sports products. We are also interested in meats – both beef and pork – and in opening the US market to Irish lamb. The expectation in the past was of a limited opportunity or niche market for exports of beef to the US. However, because of the recent higher prices in the US, the US market will become more attractive for other lower value beef cuts. Consumer foods are also a potential area for growth, particularly porridge oats.
Of course, on beef, we have defensive interests as well although our defensive interests are tempered by recent developments in US prices and our gaining of access to the US market for Irish beef. Nevertheless it is important that any quota granted to the US does not undermine the absorption capacity of the EU. Furthermore, any quota agreed with the US would need to be matched with a quid pro quo quota for EU beef in the US. Ireland would be well placed to benefit from such a quota, with our first mover advantage on the US market.
110. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which the most modern laboratory facilities remain available to the agrifood business at Backweston, Celbridge, County Kildare, or elsewhere; and if he will make a statement on the matter. [19135/15]
Amharc ar fhreagraThe facilities at the central laboratory complex in Backweston and at regional laboratories are capable of meeting the vast majority of my Department’s analytical and diagnostic requirements. While DAFM Laboratories have the capability to carry out most of the tests in these areas, for cost efficient reasons, some low volume, highly specialised reference test methods that are periodically required are still outsourced to specialist centres. Examples of the type of tests still outsourced are the phage typing of bacteria and some confirmatory tests for toxins and chemical contaminants. Amelioration works in one area, the category 4 containment laboratories, are in progress with a view to bringing that laboratory into operation. The tendering process has been completed and the main building works are expected to get under way within the next few weeks. This will provide my Department with the additional containment facilities necessary to undertake testing for the presence of exotic animal diseases that may be introduced into Ireland.
111. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the degree to which his Department continues to monitor the future prospects for the beef, sheep, lamb, poultry, and fish sectors, in the context of global market trends; and if he will make a statement on the matter. [19136/15]
Amharc ar fhreagra120. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which his Department continues to monitor the margins available to producers in the pig, beef, lamb, poultry, diary, and fish sectors, with a view to ensuring a stable industry, and maximising opportunities for producers; and if he will make a statement on the matter. [19145/15]
Amharc ar fhreagraI propose to take Questions Nos. 111 and 120 together.
BEEF
I am pleased to note that prices at the end of last week have increased 15% since last September and are now 8% higher than in the same point in 2014. Current beef prices in Ireland stand at 106% of the EU15 average. As of the end of last week, the average prices paid (excluding VAT) for an R3 steer stood at €4.08/kg and an R3 Heifer at €4.21.
Margins and input costs are 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 forum last year in order to bring all stakeholders together and to facilitate open discussion between industry and farming organisations. At the fourth meeting of the RoundTable in November, the stakeholders agreed to a broad range of outcomes which address areas of concern for the sector relating to product specification, price transparency and a weight limit moratorium until December 2015.
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 in February 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 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 six 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 in the national suckler herd. It will also place Ireland at the global forefront in the application of genomics technology and cement our reputation 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 openings of the US market to Irish beef and the lifting of the beef ban in China are major achievements in this regard.
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 the value of output 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 of 1%. To date in 2015, throughput at DAFM approved plants is almost at the same level as this time last year, with an approximate increase of 9 % in the average national price for 2015 year to date over 2014.
At producer level I continue to put in place incentives to ensure that producers see a viable future in the sector. 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 the Sheep Technology and Adoption Programme (STAP) has informed 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 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. It includes a menu of environmental actions, many of which will be suitable for 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 Trade Mission to China in November 2014, I was able to hand over the completed version of a sheep questionnaire which is a key step in gaining 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.
PIGMEAT
Pigmeat prices tend to be cyclical in nature with periods of lower prices and production followed by recovery. My Department carefully monitors developments in the pig sector, both domestically and internationally. Prices at the end of last week have increased to €147.49, now 8.7% higher than when prices reached a three-year low of €135.62 in January of this year. I called on the European Commission earlier this year to monitor developments on markets and where necessary, to quickly activate safety net provisions such as public interventions and/or private storage aid. This resulted in the introduction of the Aids to Private Storage scheme for the pigmeat sector which opened in early March of this year. However, due to the fact that EU pigmeat market prices stabilised somewhat over recent weeks and the uptake of the scheme by operators dropped to minimal volumes, the Commission closed the scheme as of this month.
In relation to the Russian ban on EU pigmeat exports, I am fully aware of the concerns Irish pig farmers have as a result of the closure of this market. My Department has met with the Russian authorities on a number of occasions to impress upon them the importance we attach to the normalisation of trade with Russia. Ultimately however, the Russian ban on pigmeat is an EU wide issue and is likely only to be resolved at EU level. The Commission has referred this matter to the WTO for resolution.
Support is provided by my Department for the pig sector in a number of ways. Firstly, I have included provision in the Rural Development Programme for an on-farm capital investment scheme, TAMS II, with an overall budget of €395 million across all sectors. Some €37 million has been allocated for 2015. Amongst the areas identified for initial funding are investments on pig farms for energy, water meters and medicine dispensers. Other elements of the RDP, such as a targeted on-farm animal health and welfare scheme will also be of benefit to the pig sector.
Other supports for 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. 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 to expand its presence on EU and third country markets.
For my part I have undertaken to ensure that as many alternative markets as possible are open to Irish Pigmeat processors since the closure of the Russian market last year. In this regard I was pleased to announce the opening of the markets in Vietnam and the Philippines for Irish pigmeat which will serve as valuable alternative markets to Russia for Irish pigmeat exports. My Department continues in its efforts to develop access to international markets.
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. Margins and input costs are impacted by a number of factors other than price and while the price of compound feed and cereals eased somewhat during 2014, they still compose a significant cost for producers. This together with energy costs and significant pressure from imports has presented difficulties for producers. Support is provided by my Department for the pig sector in a number of ways. Firstly, I have included provision in the Rural Development Programme for an on-farm capital investment scheme, TAMS II, with an overall budget of €395 million across all sectors. Some €37 million has been allocated for 2015. Amongst the areas identified for initial funding are investments on poultry farms for energy, water meters and medicine dispensers. Other elements of the RDP, such as a targeted on-farm animal health and welfare scheme will also be of benefit to the poultry sector.
While input prices reduced somewhat last year, producer and wholesale prices in the sector eased slightly throughout 2014. Poultry is normally reared under contract to processors, for a pre-agreed price, and therefore poultry producers are not subject to the same price fluctuations as other farmers. EU broiler prices decreased slightly during 2014 but there was a small recovery towards the end of the year.
The value of Irish poultrymeat exports in 2014 is estimated to have reversed the trend evident in recent years and grown by around 20%, helped by stronger processed poultry exports. The value of exports increased to an estimated €310 million, underpinned by strong growth in the export of processed products. For my part I have undertaken to ensure that as many alternative markets as possible are open to Irish poultry processors and my Department continues in its efforts to develop access to developing international markets.
Fish
There is a strong demand for fish globally and there will be export opportunities created by a requirement for an extra 40 million tonnes of seafood globally due to world population growth by 2030. Seafood is increasingly being recognised as a natural valuable, cost effective source of protein for a growing global population. In 2014 the value of seafood exports from Ireland was €519 million.
As well as the seafood export opportunities in the 28 EU Member States there are many existing seafood trade agreements with 3rd countries including US, Canada. Ireland also has Memoranda of Understanding with China, Japan and the Russian Federation. A strong performance and attendance by Irish seafood companies at April 2015 Seafood Expo in Brussels highlighted Irish seafood as a world recognised quality-led brand.
DAIRY
Raw milk prices in Ireland currently average in the region of 31 cents per litre. Using cross country comparable data from the EU Milk Market Observatory the most recently available data show that the price in Ireland is approximately one-fifth below the same month in 2014 which is consistent with EU average price movements in the same period. These price developments have been evident throughout 2014 and into 2015 and are broadly attributable to global supply and demand factors which have also been exacerbated by the Russian ban on agri-food produce from the EU and elsewhere.
The suggestion, towards end 2014 and based on analysis by various domestic commentators was that prices in Ireland could fall to the mid-twenties per litre during 2015 but this has not materialised. Co-operatives have also played a role in maintaining relative price stability. In common with other sectors, a greater focus has developed in more recent years on margin than a simple examination of price. In this respect ongoing efforts in the sector to drive efficiency at farm level will continue with a view to increasing margins.
The milk quota regime ended on March 31st. The abolition of milk quota presents a massive opportunity for the Irish dairy sector and one which we should look forward to with confidence. The consensus amongst market analysts is very clearly that medium-term prospects for global dairy markets are good, with growth in world population and wealth expected to stimulate strong levels of demand for dairy products. My aim is to help position the Irish dairy sector to be able to take advantage of this opportunity.
112. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he expects the dairy sector to be in a position to avail of benefits arising from the removal of milk quotas; and if he will make a statement on the matter. [19137/15]
Amharc ar fhreagraThe milk quota regime ended on March 31st. Planning for the post-quota period has been ongoing amongst all stakeholders for a number of years and I believe we have the right balance of measures in place to ensure that Irish dairy farmers can enter the new era with full confidence. With respect to the impending super levy, flexibility has been secured from the European Commission for farmers to pay the superlevy fine on a phased basis over 3 years. My Department is working on the details of a scheme to give effect to this flexibility at national level. This announcement will serve as a major boost to dairy farmers in helping to ease the cashflow burden of paying the superlevy bill.
Most market analysts predict that medium-term prospects for global dairy markets are good, with growth in world population and wealth expected to stimulate strong levels of demand for dairy products. My aim is to help position the Irish dairy sector to be able to take advantage of this opportunity. Price volatility is a challenge, and it is critically important that processors, farmers and the banking system work together to mitigate any negative impact.
Irish Dairy exports in 2014 were valued at over €3bn and the dairy sector is by a number of measures the country’s largest indigenous industry. Due to its reputation and significant global footprint, the dairy sector in Ireland retains significant future growth potential. The removal of quotas will be a key driver in this respect. Ireland exported dairy products worth €2.3Bn in 2010 and by last year this had risen by over one-third to over €3bn. I remain acutely aware of the need to develop as many market outlets as possible for Irish dairy products.
Developing a unique selling point for Irish dairy produce is a critically important element of the national strategy for the development of the sector, particularly in the context of the need to maximise market returns for significantly increased production in competitive markets worldwide. It remains clearly evident from engagement with potential customers for Irish dairy products that the sustainability message has a strong resonance, and through the Origin Green Programme and the Dairy Quota Assurance Scheme we are building a brand image for Irish milk production based on our strong environmental credentials.
In the run up to quota abolition a number of estimates in respect of capital investment have been made by various stakeholders. Using data from Enterprise Ireland we can see that over the past 2 years some €729M has been invested in 36 dairy and Infant Milk Formula plants. This represents significant investment and whilst much of the information about specific plants is commercially sensitive, details regarding many of the larger investments are in the public domain.
There has been significant investment at farm level too. A joint study by Teagasc and Bank of Ireland presented in early 2015 showed that Dairy farmers invested almost €2 billion in the 2007 to 2013 period, with just under half of this investment in buildings, and almost €70 million in milk quota over the period. Teagasc estimates a requirement for further investment of €1.4 billion at farm level to meet the Food Harvest 2020 targets. A €4 billion Rural Development programme will help to bridge the infrastructural gap at farm level through targeted investments in equipment and facilities.
Issues pertaining to the ongoing development will be addressed, inter alia, in the 2025 report currently being drafted and the Deputy may also be aware that I recently announced the establishment of a forum to address the key issues arising in a post quota abolition environment and the expected expansion this will lead to in the dairy sector. I envisage that this group will comprise relevant stakeholders, including farm organisations, processors and co-operatives, State and semi-State bodies, banks, environmental and others. Such a forum is appropriate as a means of engagement on critical issues such as market developments, sustainability, animal health, milk quality and price volatility.
Taken together I believe the aforementioned reasons reflect the positive state of preparedness of the Irish dairy sector for the post quota era.
