Dáil Éireann Debate, Tuesday - 22 March 2016
145. Deputy Mattie McGrath asked the Minister for Agriculture, Food and the Marine his views on the grave challenges facing the pigmeat industry; the measures he is taking to address these; and if he will make a statement on the matter. [4770/16]
Amharc ar fhreagraThe development of a viable 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. In 2015 export volumes increased by approximately 8%, with growth to the UK, Continental Europe and International markets. Export values at €570 million, fell marginally by 2% during 2015 due to lower pig prices. Pigmeat prices tend to be cyclical in nature with periods of lower prices followed by a supply response and/or a recovery in demand. My Department carefully monitors developments in the pig sector, both domestically and internationally.
I am conscious of the fact that prices have come under pressure over the last year and a half and the difficulties that this is causing for producers. This is not an exclusively Irish phenomenon, and Irish prices have actually remained ahead of the EU average for the last five months. However I would also add that like any other EU Minister I do not have a role in the setting of prices. This is a function of the market.
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. However the restrictions on other products under the EU-wide ban is not something which Ireland alone will resolve and will only be progressed through a common EU approach. The Commission has referred this matter to the WTO for resolution, and is continuing its efforts to regularise trade between the EU and Russia.
At last September’s Special Meeting of the Council of Agriculture Ministers in Brussels, I joined with other like-minded Ministers from other EU member states in calling on the EU Commission to monitor market developments and deliver a comprehensive package of support to address the current difficulties in the Irish and EU pigmeat sector. The resulting package reflects the majority of the demands presented by Ireland. An Aids to Private Storage Scheme was established for Pigmeat. In addition the Commission provided a financial package for pig and dairy farmers, from which €0.5 million in EU funding was provided for Irish pig farmers. The Government decided to match the EU funding for the sector thus providing for a €1 million package. A direct aid package payment will issue to all pig farmers with a minimum level of supply of 200 pigs slaughtered in 2015 very shortly. This means a flat rate payment of over €3,000 to each farmer. This will ensure that the payment is directed to those farmers most affected by the price volatility, thus meeting the requirements of the EU Regulations providing the funding.
In addition to this measure, following proposals made by Member States, Commissioner Hogan recently proposed a series of measures in response to the crisis in the Agricultural sector. The EU private storage aid scheme for pigmeat was closed abruptly earlier this year and at last week’s Council of Agriculture Ministers I called for its re-opening as soon as possible. The Commission has agreed to consider re-opening the private storage aid scheme for pigmeat at an appropriate time this year.
At last week’s Council, the Commission also committed to establishing a Meat Market Observatory covering beef and pigmeat. Furthermore, the Commissioner reiterated his determination to promote the EU’s interests and open up new markets for EU products, with a specific €30 million envelope for dairy and pigmeat available under the EU Promotion Scheme to reflect the market disturbances in those sectors. The Commission will prioritise its engagement with the European Investment bank with a view to developing appropriate financial instruments to assist farmers and processors to invest in their enterprises to improve their competitiveness or to invest in making any necessary structural adjustments.
At national level, 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 €35.8 million has been allocated for 2016. 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. 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 programme which is funded by a voluntary industry levy has enabled Teagasc to employ four additional advisors and researchers to support producers and the sector through 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 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 in 2014. In this regard I was pleased to announce the opening last year 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 will continue in its efforts to develop access to international markets.
