TO THE MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT

(MICHELLE GILDERNEW)

Dr W McCrea: Members recognise the global increase in the price of grain and the serious problem that it poses for the intensive livestock industry in Northern Ireland. Can the Minister take urgent steps to protect the farming industry by making representations to the processors and retailers to ensure an increase in farmgate prices, because the present financial reward to farmers is unacceptable? Farmers cannot be expected to produce an excellent product for a price that is below production costs. That situation cannot continue.

Ms Gildernew: I agree. That work has already started and will continue. It is a challenging time for the industry. We will not feel the effects of some of the changes that the Department has already brought in — for example, the set-aside legislation — until next year. I am concerned about that, given that many people in the industry have already bought their grains at a fixed rate. I am hugely worried about the impact that next year’s costs will have on the industry.

I am also working particularly closely with the pork sector, because it will be the first to feel the impact; I am also working with other sectors, such as the poultry sector. The rise in grain prices will have a detrimental impact on the industry, and prices will rise very shortly. Last week, I warned that if the price of food does not rise to reflect the Member’s comment about the farming industry, producers could go out of business, and there could be food shortages. I do not want that to happen. We need a fair price for a product that has been born or grown here. I want farmers to get a better price for their products.

Mr Burns: What level of increase in grain prices, over what period of time, would be required before the Minister would introduce protective measures to ensure the continuing success of our meat and dairy farming sectors?

Ms Gildernew: I am not sure what protective factors the Member is referring to. I will work closely with stakeholders and with the Committee for Agriculture and Rural Development on how to tackle those challenges. I am very concerned about the increase in costs. The price of grain has almost doubled in one year, and that is having a knock-on effect, given the number of food products that rely on maize, corn, barley or oats. There will be an increase in prices. We will work, at every level, to try to help the industry as much as we can.