Dáil Éireann Debate, Tuesday - 10 October 2023
381. Deputy Claire Kerrane asked the Minister for Agriculture, Food and the Marine the progress by his Department regarding securing Brexit Adjustment Reserve funding for the sheep sector; if he has engaged directly with the sector; and if he will make a statement on the matter. [43461/23]
Amharc ar fhreagra382. Deputy Claire Kerrane asked the Minister for Agriculture, Food and the Marine if he has explored new trade deals between Britain and other states as rationale for drawing funding from the Brexit Adjustment Reserve for the sheep sector, considering this demonstrates a Brexit-related impact on the Irish sheep sector; and if he will make a statement on the matter. [43462/23]
Amharc ar fhreagraI propose to take Questions Nos. 381 and 382 together.
I recognise that sheep farmers are experiencing more difficult market conditions in 2023 compared to recent years. Along with my officials, I am in regular contact with stakeholders, including the farm bodies, on the issues facing the sector. In those engagements, we have discussed current trading conditions, existing supports available to the sector and the options for providing additional supports as part of the 2024 budgetary cycle.
In relation to the market situation, the latest Meat Market Report shows that the latest national average price for Irish sheepmeat for the week ending 1 October was €6.16 per kg which is a marginal increase on the prevailing price of €6.14 per kg for the corresponding week in 2022 and is consistent with the normal seasonal trend. This price also compares very favourably with prices over the last 5 years.
In relation to the utilisation of funding under the Brexit Adjustment Reserve (BAR), it should be noted that the sheep sector is notably less dependent on the UK market than some other agri-food commodities such as beef. According to the CSO, the UK accounted for 43% of total beef exports by both value and volume in 2022; whereas sheepmeat exports to the UK last year accounted for 13% and 16% of total category exports in value and volume terms respectively. More importantly, any supports under the BAR must be strictly limited and temporary in scope because of the conditions for drawdown and the termination of funding at the end of 2023 calendar year.
While market returns have reduced for sheep farmers, mainly because of increased input costs, Teagasc forecasts suggest that family farm income for specialised sheep farms in 2023 will average €17,300, a increase of 5% on the figure for 2022. Sheep farm incomes will be boosted by payments under the new agri-environment scheme and additional income from cattle enterprises on those holdings.
This projection reflects the important role which direct payments play in supporting sheep farm incomes. It should be noted that my Department already provides significant support to the sector under the new CAP Strategic Plan (CSP), both through the Sheep Improvement Scheme and through the broad range of CSP schemes for which sheep farmers are eligible. These include the ACRES and Organic Farming schemes, which are particularly suited to sheep enterprises or mixed beef and sheep enterprises.
Additionally, I have supported livestock farmers in dealing with increased costs over the last year by providing funding for the introduction of a fodder incentive scheme, a national liming programme and a package to encourage the sowing of multi-species swards and red clover silage. I also doubled the budget allocation for the liming programme and recently announced further flexibility in its operation.
Sheep farmers are hugely committed to producing a world-class, safe and sustainable product. I can assure the deputy that I and my government colleagues are fully committed to maintaining a viable sheep sector as part of balanced of balanced regional economy.
As part of my ongoing engagement with the sheep sector, I have listened to the views of farm bodies on on future supports for the sheep sector and that input is subject to consideration in the context of the 2024 budgetary cycle.
