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Thursday, 31 Mar 2022

Written Answers Nos. 452-462

Pigmeat Sector

Ceisteanna (452)

Niamh Smyth

Ceist:

452. Deputy Niamh Smyth asked the Minister for Agriculture, Food and the Marine if he will review correspondence from a person (details supplied) regarding the pig stability fund; his plans to help the sector and the person; and if he will make a statement on the matter. [17245/22]

Amharc ar fhreagra

Freagraí scríofa

The Department is currently reviewing the proposal referred to in the Deputy's question, and is engaging with stakeholders in this context, and on the situation in the pig sector in general.

Our pig farmers have always been remarkably resilient but I am acutely aware of the unprecedented challenges that Irish pig farmers are facing at present. The continued development of the pigmeat sector is a priority for me given the pivotal role the industry plays in the national economic context. It is the third largest agri-food sector, and supports approximately 8,000 rural jobs.

Last month, I announced the Pig Exceptional Payment Scheme (PEPS), with a fund of up to €7 million, for commercial pig farmers. This is an urgent, short-term response to assist producers that would be viable but for the extreme current circumstances, and allow space for a more medium-term adjustment to market signals.

This scheme is a once off, exchequer funded scheme open to commercial pig undertakings which had produced more than 200 pigs in the period 1 January 2021 to 31 December 2021 inclusive. This includes pigs sent to slaughter, exported or sold commercially from a breeding herd.

The scheme was notified to the European Commission under the agriculture de minimis rules, which provide for a maximum payment per undertaking of €20,000.

Applications for the PEPS closed on 20th March 2022. The first tranche of payments was made last week, with the remaining applications due for processing as soon as possible. All information on the scheme can be found on my Department's website.

This scheme is part of a wider package of measures to support the pigmeat sector, including intensified efforts by Bord Bia to promote quality assured Irish pigmeat in the domestic and export markets with dedicated media advertising campaigns underway nationally, as well as EU-funded pigmeat promotion programmes running in key export markets.

Teagasc has also intensified its dedicated, ongoing advisory supports being provided to pig farmers and is actively engaging with pig farmers to explore the options potentially available to them.

There is also support for access to finance through the Strategic Banking Corporation of Ireland (SBCI), particularly the Brexit Impact Loan Scheme and the COVID-19 Credit Guarantee Scheme. Both of these SBCI finance products, which are part-financed by my Department, can be used for working capital and include features which will assist the current financial needs of pig farmers.

Furthermore, my Department continues to engage at EU level to ensure a joined-up EU approach to the challenges arising from Russia's illegal invasion of Ukraine, including through the European Food Security Crisis preparedness response Mechanism (EFSCM). Last week the Commission announced the adoption of exceptional support measures across the agriculture sector, along with a communication on Food Security. In addition, the Commission in view of the particularly difficult situation in the pig meat sector has opened a new private storage aid scheme to assist in stabilising the sector.

My Department is currently examining the detailed requirements and conditionality attached to the exceptional aid allocation to Ireland of €15.8 million in EU funding.

Animal Feedstuffs

Ceisteanna (453, 454, 455, 456)

Bernard Durkan

Ceist:

453. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which extra cereal growing can be further encouraged in the current year with a view to achieving a self-sufficiency in animal feed; and if he will make a statement on the matter. [17284/22]

Amharc ar fhreagra

Bernard Durkan

Ceist:

454. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which it is anticipated that the growing of more wheat and barley can be used as an animal feed after the current year’s harvest; and if he will make a statement on the matter. [17285/22]

Amharc ar fhreagra

Bernard Durkan

Ceist:

455. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine if he will set out the anticipated extra tonnage of barley, wheat and oats that might be grown in the current year; and if he will make a statement on the matter. [17286/22]

Amharc ar fhreagra

Bernard Durkan

Ceist:

456. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which indications have been received regarding the extra acreage likely to be sown under barley, wheat and oats in the current year; the benefit this is likely to have on the need for imports; and if he will make a statement on the matter. [17287/22]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 453 to 456, inclusive, together.

In relation to incentivising extra tillage crops this year the Targeted Intervention Package I announced on 22nd March is framed around three pillars which seek to support our vital Irish farming families arising both from events in Ukraine and wider global price volatility. The total package is projected to cost in the region of €12.2 million.

The package seeks to incentivise the planting of additional tillage crops for this coming planting season through the Tillage Incentive Scheme. It is proposed to encourage farmers to grow more tillage crops in 2022 versus 2021. Eligible crops include the cereal crops barley, wheat, oats, rye, oilseed rape, maize, beet and potatoes. A payment of €400 per hectare is proposed. The proposed budget for the Scheme is €10 million and is aimed at encouraging an additional 25,000 hectares of tillage crops, which would be a significant increase in tillage area. This level of increase will not achieve self-sufficiency in terms of animal feed due to the high protein requirements of our pig and poultry sector but the extra tonnage of grain will reduce our reliance on imports to some degree.

It is not possible to estimate the extra tonnage likely to be generated from cereal growing in 2022 as we are some time away from harvest and weather coupled with growing conditions for the spring and summer as well as at harvest time will determine the harvest yields and quality. However, I do note that Teagasc has estimated the winter crop area in 2021 to be approximately 5% higher than in 2020 and crops have come through the winter period in good condition, which bodes well for the cereal harvest this year.

In terms of extra incentives, I am committed to encouraging native grain production and both I and my Department will continue to assess and support this objective.

Question No. 454 answered with Question No. 453.
Question No. 455 answered with Question No. 453.
Question No. 456 answered with Question No. 453.
Question No. 457 answered with Question No. 451.

Agriculture Industry

Ceisteanna (458)

Bernard Durkan

Ceist:

458. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he anticipates a reduction in carbon emissions while maintaining the agrifood sector in its ability to deliver at a time of worldwide food shortages; and if he will make a statement on the matter. [17289/22]

Amharc ar fhreagra

Freagraí scríofa

Food Vision 2030, the new stakeholder-led strategy for the Irish agri-food sector, is a landmark for the Irish agri-food sector with the potential to transform agriculture, food, forestry and marine in the period to 2030, with economic, environmental and social sustainability at its core. Some 200 actions under 22 goals are proposed to fulfil the vision of Ireland becoming a world leader in Sustainable Food Systems over the next decade, guided by four high-level missions: 1. A Climate Smart, Environmentally Sustainable Agri-Food Sector 2. Viable and Resilient Primary Producers with Enhanced Well-Being 3. Food that is safe, nutritious and appealing: trusted and valued at home and abroad 4. An Innovative, Competitive and Resilient Agri-Food Sector, driven by Technology and Talent.

There are seven Goals in Mission 1 “A Climate Smart, Environmentally Sustainable Agri-food Sector” which aim to deliver a climate-neutral food system by 2050, with verifiable progress achieved by 2030, encompassing emissions reductions, carbon sequestration, improvements in air quality, restoration and enhancement of biodiversity, improvements in water quality, development of diverse forests, enhanced seafood sustainability, exploring the bioeconomy and strengthening Origin Green. On 4 November Ireland’s Climate Action Plan 2021 was launched - this is the most ambitious Climate Action Plan ever produced. The commitments for reducing greenhouse gas emissions are challenging but I know the sector is committed to the challenge. Delivering real results will require collaboration, cooperation, and a sense of shared responsibility between citizens, industry and the State to deliver our environmental ambitions. I recently chaired the second High-Level Implementation Committee meeting of Food Vision 2030, where we discussed progress on implementing key Food Vision priorities, including the work of a new Food Vision Environmental Group and a Food Vision Dairy Group.

In the context of the current crisis following the Russian invasion of Ukraine, it is important to recognise that Ireland is part of the EU single market and participates in the Common Agriculture Policy (CAP), which is the key mechanism for ensuring food security throughout Europe. Significant implications are being seen across all sectors, including the agri-food sector. As well as the immediate humanitarian crisis, which must take priority, we need to take the necessary steps to ensure that food security is maintained, for EU citizens, for the Ukrainian people and in the wider global context. Following discussions at these meetings the European Commission announced on Wednesday 23 March, via the communication “Safeguarding food security and reinforcing the resilience of food systems”, a range of actions to enhance global food security and to support farmers and consumers in the EU in light of rising food prices and input costs.

At farm level, the crisis is already impacting very significantly on the price of animal feed, fertiliser and fuel. Within my Department, I have established a Rapid Response Team, chaired by the Secretary General, to actively monitor the impacts on agri-food supply chains and to contribute to the whole of Government response to this crisis. I have tasked a National Fodder and Food Security Committee headed by Teagasc to prepare an industry response to the emerging crisis in feed, fodder, fertiliser and other inputs, and to develop contingency plans and advice to assist farmers in managing their farm enterprises. On 22nd March, the Government approved my proposal for a targeted intervention package for the tillage sector and a multi-species sward initiative, worth over €12 million to support Irish farmers. This package is aimed at producing more native crops and reducing dependency on imports, and on producing crops with a low demand for chemical fertiliser.

I will continue to engage with all our stakeholders and will continue to work across Government, and with our European partners, to respond to this crisis using all of the tools at our disposal.

Food Industry

Ceisteanna (459)

Bernard Durkan

Ceist:

459. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which food processing can be facilitated in a way to reduce reliance on imports; and if he will make a statement on the matter. [17290/22]

Amharc ar fhreagra

Freagraí scríofa

Both Food Vision 2030 and the Programme for Government set out a series of goals and initiatives to explore and encourage domestic market opportunities, and to support producers in finding routes to market for their produce.

Specific current supports include the LEADER Food Initiative, funded by my Department and implemented and managed by the Department of Rural and Community Development, which supports the development of food and drink businesses throughout rural Ireland. The funding covers the purchasing of processing equipment as well as the renovation and extension of production facilities and supports participants in the artisan food and beverage sector in areas such as market development, competitiveness, and innovation.

Teagasc and other research institutions are developing innovation and pilot processing centres. For example, my Department has provided funding to establish the Prepared Consumer Food (PCF) Centre in Ashtown, which provides an important service to the Prepared Consumer Food sector through specialist expertise, state of the art facilities and innovative research by Teagasc and industry partners. The PCF Centre enables researchers and industry to collaborate in private and public research projects in the prepared consumer foods arena and to pilot and develop food products for placing on both the domestic and export market.

As well as leading the marketing and promotion of Irish food and drink in our export markets, Bord Bia has an important role in promoting quality assured food and drink on the domestic market, through targeted marketing and communications campaigns, while respecting EU state aid rules.

I am satisfied that the measures in place and the commitments in both the Programme for Government and Food Vision 2030 will provide a sound basis for the future development of the agri-food sector in Ireland, including further developing the domestic market.

Question No. 460 answered with Question No. 451.

Farm Costs

Ceisteanna (461)

Bernard Durkan

Ceist:

461. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which alternative fertiliser imports can be identified with a view to ensuring a high level of farm production; and if he will make a statement on the matter. [17292/22]

Amharc ar fhreagra

Freagraí scríofa

The Department is actively engaging with industry on fertiliser availability.

Russia is a large global player with regard to the production and export of nitrogen and phosphate fertiliser. Both Russia and Belarus supply some 35% of the world’s supply of potash and Russia also provides up to 6% of urea globally.

In addition, three major global fertiliser companies that have had a direct ownership link to Russian oligarchs that the EU Commission placed on its sanctions list on 9th March, which further exacerbates an already difficult situation, as they provide significant volumes to Europe. In respect of Ireland, 22% of all fertiliser imports in 2021 came from Russia.

The significant price rise for gas over the past six months means that it may not be economical for several European fertiliser plants to continue at full capacity, putting further pressure on supply. More than 40% of EU gas comes from Russia. The absence of these fertiliser supplies on the world market would have a further impact on commodity availability and price.

Sourcing of alternative sources of fertiliser and fertiliser raw materials is challenging and expensive as the rest of the world is also seeking access. However, fertiliser importers are actively competing to ensure that supply continues uninterrupted. North Africa is seen as an alternative source for some fertiliser and raw materials but domestic quotas and longer shipping times are issues of concern.

We continue to actively engage with the main importers of fertiliser and fertiliser raw materials on issues around supply and availability and will continue to monitor the current issues being faced by the sector.

At a meeting of farm organisations on 8th March, I established the National Fodder and Food Security Committee to explore all options to minimise the impact on farms and plan in the short to medium term. This Group continues to meet and support farmers.

Agriculture Industry

Ceisteanna (462, 472)

Bernard Durkan

Ceist:

462. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he remains satisfied regarding the future of the beef industry while at the same time meeting carbon reduction deadlines; and if he will make a statement on the matter. [17293/22]

Amharc ar fhreagra

Bernard Durkan

Ceist:

472. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which the future for Irish lamb remains attractive in both the export and domestic markets; and if he will make a statement on the matter. [17303/22]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 462 and 472 together.

While slaughter levels were slightly down for both beef and sheep in 2021, prices were up on the previous year.

For beef, the total annual slaughter figure at the end of 2021 was 1.66 million head which represents a 5% decrease on 2020 levels of 1.75 million head. The average 2021 R3 Steer price of 407.95c/kg was 12.5% above the 2020 average price of 362.71c/kg. Central Statistics Office (CSO) data shows an increase in value of beef exports of 3% to €2.4 billion 2021 in spite of a reduction in volume of 14% in comparison to 2020.

Teagasc forecasts that EU beef supply will decline in 2022 and that UK supply will remain unchanged. The outlook for Irish beef exports to EU27 and the UK remains generally positive for 2022 according to Bord Bia. Global market demand seems set to remain good with tight global supplies.

The Teagasc Sustainability Survey shows that the top performing third of farms emitted, on average, 9.6 kg CO2 equivalent per kg beef, compared with 14.9 kg for the bottom performing third of cattle farms. Reducing this variability is a real opportunity to make progress in reducing emissions from cattle production in Ireland with positive economic dividend on the farms concerned.

Schemes such as the Beef Data and Genomics Programme (BDGP) and Beef Environmental Efficiency Programme-Sucklers (BEEP-S) are focused on improving the carbon efficiency of the beef herd.

For sheep, total slaughtering for 2021 was 5% down on 2020 at 2,720,467 head. The average 2021 price of 664.49c/kg was 28% above the 2020 average price of 519.27c/kg. Tighter global and EU supplies of sheepmeat, combined with firm demand, resulted in a positive market for Irish sheep­meat during 2021. According to CSO data, the value of sheepmeat exports increased strongly for the second consecutive year, rising by 8.3% to €385 in 2021. This was despite a drop of 9.9% in export volumes over the same period.

Tighter global supplies of sheep­meat and the redistribution of global supplies have helped drive higher export values for Irish exporters and these trends seem set to continue in 2022.

Enhancing access for Irish sheep meat in third country markets remains a key component of my Department’s market access goals. The Irish food industry is well positioned to gain from the opportunities presented by expanding global demand for high-quality Irish beef and lamb.

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