Headlines

Egg producers in Northern Ireland fear that Government grants for their counterparts across the border in the Irish Republic could put them at a disadvantage.

Irish Government building

John McClenaghan, UFU Poultry Committee Chairman

The Irish Government has announced state funding to help egg producers meet higher welfare regulations that are being imposed by the European Union. Conventional laying cages will be banned in the EU from January 2012. Producers in some parts of the EU are struggling to meet the conversion deadline but the Irish Government says financial help will be available for egg producers looking to convert.

Farmers in the north have expressed their concern through the Ulster Farmers’ Union that significant funding towards cage conversion in the Republic of Ireland will put them at an unfair disadvantage. "The welfare scheme, which is worth almost €29 million, forms part of a €113 million overall scheme launched by the Government for on-farm investment," said the Ulster Farmers’ Union in a prepared statement. "It is aimed at improving the standards of animal welfare in poultry production and sow housing. Our counterparts in ROI have indicated that this will amount to a grant of just over €11 per bird."

UFU Poultry Committee chairman John McLenaghan said, "It is both refreshing and disheartening to see the ROI government’s response to the problems facing the egg sector for the conversion of housing to meet new EU standards. These actions are in contrast to DARD’s (Department of Agriculture and Rural Development) lack of support for the poultry industry and re-enforces the fact that funding from the Farm Modernisation Scheme will not be enough."

Northern Ireland’s Farm Modernisation Programme, which is partially funded by the European Agricultural Fund for Rural Development, is designed to contribute to the competitiveness of agricultural and horticultural farm business in the province by providing financial support to existing farm businesses. The aim is to improve the overall performance of a farm through modernisation under six key priority investment areas:

• Introduction of new technologies and innovation;

• Improved animal health and welfare;
• Increased hygiene control and product storage;

• Enhanced occupational safety and business efficiency;

• Increased energy efficiency; and

• Enhanced environmental status.

The programme offers financial support to enable farm businesses to purchase plant, machinery and equipment from a pre-defined list of eligible items. Farm businesses can apply for financial support of 40 per cent of the purchase cost of these items up to the maximum amount allowable for each item.

John McLenaghan said, "The UFU Poultry Committee has already expressed its disappointment in the Agricultural Minister’s response to our request for assistance for the egg sector earlier this year. We have clearly stressed the difficult position that the industry is in and the potential problems farmers may face in successfully financing conversion within the required time.

"The Minister’s reliance on the Farm Modernisation Scheme, which will only offer a maximum grant of £4,000, is inadequate. The cost to an individual producer of converting conventional cages to an alternative system can amount to hundreds of thousands of pounds, which many poultry farmers simply don’t have. This new funding for the ROI also now creates a competitive disadvantage for Northern Ireland producers, which is further distorted by potential imports of cage eggs from other EU member states who have already indicated that they will not meet the 2012 deadline."

Poland has already made an official request for the deadline for conversion to be put back. The Poles asked for it to be delayed for five years until January 2017. They argued that imposing the ban in 2012 would lead to a shortage of eggs in the EU and result in lower standard and lower welfare eggs being imported from outside the union. That request was rejected at a meeting of the EU’s Agriculture Council on February 22, but many people in the industry still suspect that the EU will be forced to allow some member states more time to make the conversion.

If that does happen, the UK industry is concerned that egg producers here and in other EU countries who have invested in alternative production systems will face unfair competition from those allowed to continue with conventional cages. If some countries are allowed extra time, the UK wants to see an intra-EU trade ban enforced, alongside the introduction of a stamping code to distinguish conventional cage eggs from those produced in enriched systems.

John McLenaghan said, "Egg producers have very little time now before they must decide whether to invest heavily or cease production. Our Minister needs to act now and provide an adequate solution to the industry’s problems."

In Dublin the funding schemes for poultry and pig farmers were outlined by the Minister for Agriculture, Fisheries and Food, Brendan Smith. He said, "They reflect the continuing importance that the Government places on the maintenance of the highest standards of animal welfare in the Irish farming sector. The schemes represent a significant investment of a maximum of almost €30 million in two key areas of production and will be of considerable benefit to pig farmers in the conversion of loose housing for sows as well as assisting poultry producers in the conversion to enriched cages, free range or barn systems."

Under the terms of both schemes, grant aid will be available at a standard rate of 40 per cent for investment in sow housing and laying hen facilities which will meet the standards laid down in the relevant EU directives on animal welfare. The Minister said that "having launched the grassland sheep scheme in April, I was particularly anxious to give priority to the launch of these two schemes as the new EU directives come into force at the end of 2011 and 2012 for the laying hens and sows, respectively."

A spokesman for the Irish Government told the Ranger that the €29 million grant scheme would provide up to €16 million for the Poultry Welfare Scheme and €13 million for the Sow Welfare Scheme.
Both schemes are now open and applications will be accepted up to end of June 2011 for poultry farmers and the end of June 2012 in the case of sow house investments.

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