Written Answers Nos. 388-395
388. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he and his Department continue to encourage the fishing industry with particular reference to ensuring that the industry here can compete with all others; and if he will make a statement on the matter. [61600/22]
Amharc ar fhreagra398. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he remains satisfied that the fishing industry will continue to sustain fishing families with increased emphasis on food processing and the protecting of fishing grounds; and if he will make a statement on the matter. [61594/22]
Amharc ar fhreagraI propose to take Questions Nos. 388 and 398 together.
I can assure the Deputy that my Department constantly monitors the needs of the fisheries sector. Along with regularly meeting with representatives of the sector, holding formal consultations and attending public forums, we monitor developments in key economic indicators. My Department prepares and publishes an Annual Review and Outlook (ARO), which provides up-to-date information and statistical analysis from a variety of sources, to give a detailed overview of Ireland’s agri-food sector and an outlook for the future. This year’s report was published on 09 November.
Earlier this year, BIM published its Business of Seafood report for 2021. The report indicated that employment in the seafood sector remained stable in 2021 with approximately 16,650 people employed directly and indirectly within the sector, an increase in overall employment of 1%.
The EU-UK Trade and Cooperation Agreement (TCA) will, unfortunately, have an impact on our fishing industry. However, this impact would have been far greater had the Barnier Task Force agreed to UK demands, or had we been in a no-deal scenario which would have seen all EU vessels barred from UK waters and subsequent displacement into Ireland's fishing zone.
I established the Seafood Sector Task Force in March 2021 to examine the impacts of the TCA on our fishing sector and coastal communities and to make recommendations to me on a mitigation strategy. I received the Report of the Seafood Task Force in October 2021 and it recommends some 16 support schemes at a cost of €423 million. I am progressing the implementation of the schemes in the Report.
The scheme in progress include a series of schemes aimed at creating jobs in the seafood sector and in coastal communities, including the €45 million Brexit Seafood Processing Capital Scheme, the €20 million Brexit Sustainable Aquaculture Growth Scheme and €25 million Blue Economy Enterprise Development Scheme. In total, €225m in supports and developmental strategies have been announced which will contribute to sustaining employment in the seafood sector as a whole, providing new career opportunities and ensuring those transitioning within the sector are supported.
In addition to the measures recommended by the Task Force, my Department’s €240 million European Maritime and Fisheries Fund (EMFF) Programme 2014-20 has been operating since 2016, supporting the sustainable development of our seafood sector. The Programme has been providing a wide range of financial supports to fisheries, aquaculture and seafood processing enterprises and to enterprises, groups and individuals in coastal communities. These include supports for capital investment, innovation, professional advisory services and marketing. Through these measures, the Programme has been fostering the economic development of the seafood industry and coastal communities, building value and growing exports in these enterprises. The EMFF Programme is now coming to an end and a new Seafood Development Programme under EMFAF 2021-27 has been prepared by my Department and has been submitted to the European Commission with a view to achieving adoption before the end of 2022
I can assure the Deputy that this Government is committed to addressing the challenges facing our seafood sector following the TCA. I am pursuing all opportunities at EU level to help address the unequal burden sharing whereby Ireland carries an excessive burden of the EU quota transfers to the UK including in the CFP review which is currently in progress.
389. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which his Department continues to monitor and safeguard the interest of the agrifood sector given the sharp increase in price of inputs; and if he will make a statement on the matter. [61601/22]
Amharc ar fhreagraThe Department of Agriculture, Food and the Marine (DAFM) constantly monitors the interests of the agri-food sector.
Along with meeting regularly with representatives of the sector, holding formal consultations and attending public forums, we monitor developments in farm incomes, viability, structures, key commodities, food industry trends and other key economic indicators.
DAFM prepares and publishes an Annual Review and Outlook (ARO), which provides up-to-date information and statistical analysis from a variety of sources, to give a detailed overview of Ireland’s agri-food sector and an outlook for the future. The most recent edition, ARO 2022, was published last month.
Each month the CSO issue the Agricultural Price Indices outlining the changes in output and input indices for a range of agricultural products. The most recent indices, published in November, show that the agricultural input price index up by 36.9% in the 12 months to September 2022. The main increases in input prices were in fertiliser (+121.9%), energy prices (+40.1%) and feed prices (+33.4%).
Since the invasion of Ukraine started, I have announced a number of measures valued at €91 million, to assist the agri-food sector including an incentive for farmers to grow additional fodder, and specific supports for the pig, tillage & horticulture sectors.
In addressing the current challenging economic landscape, I announced the highest-ever level of funding for my Department in Budget 2023, a 13% increase overall, and I will continue to deliver the appropriate level of support, including working with my colleagues on business supports for farmers, fishers and food & drink businesses.
Measures of particular assistance to the agri-food sector included: the continuation of the reduction of excise duty on agricultural diesel to nil; the Temporary Business Energy Support Scheme and the Ukraine Enterprise Crisis Scheme, which will provide important support for farmers and food businesses with their energy bills; and the delivery of new loan schemes.
I am acutely aware of the challenges facing farm families, coastal communities and food businesses and due to the sharp increase in the price of inputs.
We are living in uncertain times, but we need our farm families and fishers producing safe, sustainable, and high-quality food more than ever. I will continue to back them in doing that.
390. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which the various export markets for Irish food and food products have been examined with a view to ensuring their continuity and stability and the need to ensure the availability of sufficient food and food products in the face of worldwide shortages; and if he will make a statement on the matter. [61602/22]
Amharc ar fhreagraGlobal markets for Irish agri-food exports have been impacted by a series of challenges in recent years. ranging from Brexit to the COVID-19 pandemic to current uncertainties and pressures on inflation and supply chains arising from Russia's illegal invasion of Ukraine.
Despite these complex and multifaceted challenges, which have resulted in significant uncertainty and volatility in EU and global food supply chains, Ireland's agri-food sector trade performance has very strongly demonstrated the ongoing resilience of the sector.
The most recent 2022 Central Statistics Office (CSO) data available, covering the period January to September 2022, shows that our agri-food exports (to over 180 countries worldwide) were valued at €13.9 billion, up over €2.5 billion on the same period in 2021. The overall volume of Irish agri-food exports has also increased in 2022 compared to 2021, by some 2.1%, with dairy exports increasing in volume terms by 6% and beef by 12%.
This continued growth in Irish exports of high-quality and sustainably produced food products is critical to global markets which are facing much uncertainty at this time, not least because of inflationary pressures driven by the war in Ukraine.
I can assure the Deputy that my Department's focus, in the face of current geo-political challenges, remains firmly on supporting the agri-food sector in meeting its ambitions to grow exports in a sustainable manner and to continue to contribute to solutions to address global food security concerns.
391. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he and his Department continue to monitor production costs in the pigmeat sector; the continued efforts in this regard; and if he will make a statement on the matter. [61603/22]
Amharc ar fhreagraThe continued development of the pigmeat sector is a priority for the Government, given the pivotal role the industry plays in the national economic context. The sector supports approximately 8,000 jobs spanning production, slaughter, processing, feed manufacture and services. I am acutely aware of the challenges pig farmers are facing at present.
I have provided significant support to the pig sector this year in recognition of the enormous pressures they have had to contend with.
A total of €13 million in EU exceptional aid funding was made available for the Pig Exceptional Payment Scheme 2 (PEPS2), a voluntary scheme for pig farmers, to support the viability of this important sector.
The scheme opened for applications on 13th June 2022 and closed for applications on 11th July 2022. This scheme provided for a payment of up to €100,000 per farmer. The PEP2 scheme was in addition to the Pig Exceptional Payment Scheme which I announced in February, funded by the Exchequer and notified under the agriculture de minimis state aid provisions, to support commercial pig farmers. This scheme provided for a payment of up to €20,000 per farmer.
All payments have now been processed under both schemes.
My Department continues to monitor the market situation including production costs in the sector and continues to engage at EU level, including through the Pig Reflections Group, to ensure a joined-up EU approach to the challenges arising from Russia's illegal invasion of Ukraine.
In terms of ongoing stakeholder engagement, my colleague, Minister of State Martin Heydon, chairs quarterly meetings of the Pig Roundtable.
Including representatives from the farming and processing sectors, Teagasc, Bord Bia, and Department officials, the Roundtable's overarching objective is to serve as a vehicle for constructive discussion in driving forward the development of the sector as well as taking a high level approach to guiding the actions for the sector set out in Food Vision 2030.
Teagasc has intensified its dedicated, ongoing advisory supports being provided to pig farmers and is actively engaging with pig farmers to explore the options available to them and Bord Bia continues to promote quality assured Irish pigmeat in the domestic and export markets, with dedicated media advertising campaigns under way nationally, as well as EU-funded pigmeat promotion programmes running in key export markets.
392. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he and his Department continue to monitor production costs in the poultry sector with particular reference to the need to ensure a stable cost base; and if he will make a statement on the matter. [61604/22]
Amharc ar fhreagraAs in other meat sectors, global trade conditions will be crucial in determining the outlook for the Irish poultry sector over the medium to longer term.
Poultrymeat, which is a food high in protein, has seen an increase in demand in recent years and this increase has seen a 10% increase in the average price paid in August 2022, when compared to the average price paid at the beginning of the year.
I am aware of the pressures being faced by many in the agri-food sector due to the increase in input costs, exacerbated by the impact of the illegal war in Ukraine. The Department continues to monitor the markets and any impacts on the agri-food sector. Poultry is normally reared under contract to processors, for a pre-agreed price, and, therefore, poultry producers are not typically subject to the same price fluctuations as other farmers. This is no way to diminish the cost challenges faced by the sector from growers to processors.
I am also very aware of the contribution of the poultry production sector to Irish agri-food as a whole, supporting significant levels of direct employment as well as their role in supporting rural economies and the wider national economy and I firmly believe that the poultry production sector in Ireland remains viable.
393. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which the future for Irish lamb remains attractive on both the export and domestic markets; and if he will make a statement on the matter. [61605/22]
Amharc ar fhreagraIrish sheep farm families produce a world-class product that is in demand across many global markets, and I am very conscious of the important role that the sheep sector plays in the continued growth and development of our agri-food sector.
According to the Central Statistics Office (CSO) sheepmeat exports worth approximately €385 million, or 57,737 tonnes were exported in 2021, an increase of 8.3% in value on 2020.
For 2022 TYD (September) the value of sheep meat exports increased by 19.6% on the same period last year, with a 13% increase in volume in that period. The overall market outlook for Irish and EU lamb prices for 2022/2023 remains reasonable, although Irish lamb prices are forecast to experience some decline from the record high levels received in 2021.
In line with this, for the week commencing 21st November , the year-to-date average price for sheep meat was 648.93/kg which is a 7% decrease on the same period in the previous year.
Securing market access and diversifying trade remains a key aim for my Department. Developing market opportunities at home and abroad is one of the goals of Food Vision 2030.
However, I am acutely aware of the pressures being faced by many sectors across the agriculture industry due to the increase in input costs. Since the invasion of Ukraine, I have taken a proactive approach to dealing with the massive challenges arising for the agri-food and fisheries sector.
Farming is not alone in dealing with these challenges, but our sector is particularly exposed as a result of the invasion. I have announced several measures since this crisis started, to support our farm families and their businesses and I will continue to support the sector.
394. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the degree to which cereal growing continues to be attractive here; if its viability is coming under pressure from other jurisdictions; and if he will make a statement on the matter. [61606/22]
Amharc ar fhreagraThe tillage sector is an important and integral component of the Agri-food industry. While Ireland accounts for 1% of EU cereal production, the sector is a major contributor to livestock production providing high quality grain to the animal feeding industry and straw for feeding and bedding. Cereal growers also make a significant contribution to the food and drinks sector.
The area under tillage increased by 20,000ha to 340,000ha in 2022. This year’s harvest was one of the best harvests in recent memory. Crop quality was good with low moistures which saved on drying costs. Yields were very good overall resulting in an estimated grain harvest of 2.42million tonnes, an increase of 93,000 tonnes over 2021 (Source: Teagasc Harvest Report 2022).
Grain prices were very good this year with an increase of approximately €100/tonne on 2021 harvest prices for both wheat and barley. Despite high fertiliser prices, these prices resulted in good gross margins for cereal crops.
While there are undoubted challenges ahead for the sector, I am confident that the sector is well positioned to deal with those challenges and to take full advantage of the opportunities that exist. It can grow significantly in the years ahead and I have and will continue to back the sector given its value.
Earlier this year, I introduced the Tillage Incentive Scheme with a €400/ha payment on additional crop area. The scheme is being continued for 2023 to maintain and build on the progress made by the Scheme in 2022.
The recently approved CAP Strategic Plan will provide support for the sector through various measures including higher payments under the Protein Aid Scheme, continued support for the Straw Incorporation Measure, the continuation of the Tillage Capital Investment Scheme and access to Agri Environment and Climate Measures.
My Department also supports the sector through a comprehensive variety trialling system to identify varieties most suitable for Irish farmers and also through the seed certification schemes which ensures growers have access to top quality seed.
395. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which efforts continue to maximise the reduction of carbon emissions in the agrifood sector without reducing production; and if he will make a statement on the matter. [61607/22]
Amharc ar fhreagraThe Deputy may be aware that the issue of maintaining food production has been the subject of much discussion over recent months, particularly in the context of agreeing sectoral emissions ceiling that were established for the agriculture sector over recent months.
My position has been consistent on this matter, agriculture, like all sectors of the economy, will indeed need to step up its climate ambitions in order to ensure that the economy wide reduction of a 51% reduction in emissions by 2030 is achieved. However, agriculture is not unique in this regard as climate change is a challenge for everyone in society. Also, farming is well positioned to meet these ambitious.
I am currently considering the outputs of the Food Vision Dairy and Beef reports. All options are being considered in order to ensure that emissions get on a declining trajectory to live within our agreed carbon budgets. The Climate Action Plan 2023 will soon be published, and it will contain a step up in ambition in relation to some measures such as reduced chemical N and protected urea. I am satisfied that the sector will be able to achieve its stated climate objectives.
I recently approved the largest ever forestry support programme in the history of the state and undoubtedly some farmers may diversify away from food production. However, this will be on a voluntary basis, and farmers will be left to make decisions about their own farms.
My ultimate aim is to futureproof our beef and dairy sector for the benefit of our industry, the environment and our farm families who are the backbone of the sector and rural communities. Ireland's agri-food sector will continue to be underpinned by our world class dairy and beef sectors, and we must work collectively to support farmers in these aims.
