Brendan Smith (Cavan-Monaghan, Fianna Fail)
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1614. To ask the Minister for Agriculture, Food, and the Marine if he will provide financial assistance to a sector (details supplied) due to difficulties that have arisen due to the weakening of Sterling; and if he will make a statement on the matter. [26349/16]
Michael Creed (Cork North West, Fine Gael)
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I am aware of the impact that the devaluation of Sterling is having on mushroom producers and grower margins. The mushroom sector, like many other exporting sectors, is particularly at risk because of the high dependency on the UK market.
I am monitoring the situation regarding Sterling volatility closely and my own Department has a dedicated unit considering the impact of Brexit. Additionally, Bord Bia is working closely with the sector on market intelligence, UK consumer research and quality assurance. They have scheduled a currency and negotiation workshop specifically targeted at the sector in the coming weeks.
I would also draw attention to support being provided to the industry through National and EU Schemes.
Under the National Development Plan (NDP) 2007 – 2013 my Department implemented the Scheme of Investment Aid for the Development of the Commercial Horticulture Sector. During this period my Department paid out €4,039,629 in grant payments to mushroom growers which supported €10.1 million in investment.
To ensure ongoing support for the sector, my Department extended, under EU sanction, the Scheme of Investment Aid for the Development of the Commercial Horticulture Sector to run until 31 December 2019. In 2014 and 2015 a total of €1,635,190 grant aid was paid to mushroom growers. The grant aid paid supported some €4.1 million in investment by these growers.
Under the 2016 Scheme of Investment Aid for the Development of the Commercial Horticulture Sector, my Department issued approvals in the amount of €1.33 million in aid to growers in the mushroom sector, supporting €3.3 million in proposed investment.
The EU Producer Organisation Scheme is a vital support for mushroom growers, with 65% of Irish growers in a producer organisation at present. This scheme provides an important mechanism for growers to achieve greater bargaining power in the marketplace by becoming part of a larger supply base. Between 2005 and 2015, a total of €39.8 million was paid to mushroom producer organisations as part of the EU Producer Organisation scheme.
Source: KildareStreet – Mushroom Industry: Horticulture in the Dail
