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Annual Report Department of Agriculture, Food and the Marine Annual Report www.agriculture.gov.ie Annual Report 2016 Department of Agriculture, Food and the Marine (DAFM) Mission Statement “To lead the sustainable development of the agri-food, forestry and marine sector and to optimise its contribution to national economic development and the natural environment” This Annual Report is produced in line with the objectives set out in the Statement of Strategy 2015 - 2017 1 Annual Report 2016 Annual Report Contents 2016 Page Review of 2016 3 Main Achievements 4 Organisation of the Department 7 OBJECTIVE 1 - AGRI-FOOD, FORESTRY AND MARINE POLICY AND TRADE DEVELOPMENT 10 Performance Budgeting for Objective 1 11 EU Interactions 13 International Interaction 17 Food Security 20 National Policy Framework 26 Innovation 32 Food and Drink Sector 28 Primary Production 33 I Meat 33 I Poulty & Eggs 37 I Milk 38 I Crops 40 I Livestock 43 OBJECTIVE 2 - FOOD SAFETY, ANIMAL HEALTH AND WELFARE AND PLANT HEALTH 45 Performance Budgeting for Objective 2 46 Food Safety 48 Animal Health 52 Plant Health 57 Laboratory Service 59 I Veterinary Laboratories 59 I Agriculture Laboratories 65 OBJECTIVE 3 - RURAL AND MARINE ECONOMY AND ENVIRONMENT 68 Performance Budgeting for Objective 3 69 Promoting Sustainable Farming 71 Climate Change 75 Bioenergy 76 Seafood 77 Fisheries Management and Conservation 80 Fishery Harbour and Coastal Infrastructure Capital Development Programme 83 OBJECTIVE 4 - SCHEMES AND SERVICES 84 Performance Budgeting for Objective 4 85 Scheme Operations 87 Customer Service 89 Financial Management 93 Staff and Organisational Management 96 Developing IT Capability 100 APPENDICES 105 Appendix A: State Bodies 106 Appendix B: Vote 30 Agriculture, Food and the Marine 2016 109 Appendix C: EAGF/EAGGF Guarantee Expenditure 2016 112 2 Annual Report 2016 Annual Report Review of 2016 2016 The agriculture and food sector continued to play a vital Budget 2017 included an adjustment to the farmers’ role in Ireland’s economic recovery in 2016. According to ‘Income Averaging’ taxation system, allowing an opt-out Bord Bia food and drink exports rose by about 2% to for an exceptional year. It also included support reach €11.15 billion, marking growth of over 41% since measures for SMEs, the introduction of a fishers’ tax 2010. CSO statistics for agri-sector exports, which include credit of €1,270 and environmental agri-taxation non-edible products such as forestry increased to €12.2 measures. billion in 2016. The profile of trade continues the change that has been evident in recent years, with exports of During 2016, the Minister launched a “Cash Flow & food and drink to international markets (outside of our Financial Management Initiative” to improve on-farm traditional UK and EU markets) steadily increasing to a financial planning on farms, particularly cash-flow value of around €3.5 billion in 2016. planning. Developments in 2016 were dominated by the decision The market difficulties across the EU continued in 2016 of the United Kingdom in June to leave the European for the dairy and livestock sectors. Two further Union. Substantial work was undertaken by the packages of support measures were agreed by Member Department in the first half of 2016 to identify the key States, in March and July, the latter of which included an risks that could arise in the event of a Brexit and to EU-wide €500 million support fund. This package engage in preliminary contingency planning. Internal comprised two elements - a €150 million EU-wide analysis of the likely implications for key sectors was measure to compensate farmers for reducing their milk conducted, informal consultations were held with output; and a €350 million fund allocated to Member stakeholders and the Department fed into a whole-of- States (of which Ireland’s allocation amounted to €11.1 Government contingency framework prepared by the million). Ireland’s allocation was augmented with a Department of the Taoiseach. Following the decision further €14 million in national funding to provide that the UK would leave the EU, this analysis was further leverage for a new €150 million low-cost loan scheme for deepened, consultation with stakeholders in the sector Irish farmers. was intensified, and engagement with colleagues in other Member States and in the UK (including Northern Ireland) commenced. food and drink exports rose The Minister for Agriculture, Food and the Marine, Michael Creed TD, announced a “three pillar strategy” in by about 2% to reach €11.15 response to income volatility as part of Budget 2017. billion, marking growth of Along with tax measures and farm payments, the “Agriculture Cashflow Support Loan Scheme” was over 41% since 2010 announced to assist in addressing the impact of the change in the sterling exchange rate and lower commodity prices in some agriculture sectors. The Scheme, developed by the Department in co-operation with the Strategic Banking Corporation of Ireland (SBCI), makes €150 million available to farmers at interest rates of 2.95%. 3 Annual Report 2016 2016 Main Achievements Simplification of the CAP continued in 2016. A number Under Horizon 2020, the EU Framework Programme of simplified market measures were adopted in May, for Research and Innovation, Ireland drew down a including regulations on public intervention and total of €5.44m in the Food Security, Sustainable private storage, and on import and export licences. Agriculture and Forestry, Marine, Maritime and Inland Water Research and the Bioeconomy element of the 2016 saw a significant step forward for global climate programme. action with the Paris Agreement entering into force. Ireland ratified the Agreement in quarter four of 2016. Ireland’s €240 million European Maritime and Fisheries Fund (EMFF) Operational Programme for the seafood At EU level in July 2016, the European Commission sector was implemented in 2016 through the roll-out presented a legislative proposal, the "Effort Sharing of 16 Schemes for the fishing, aquaculture and seafood Regulation", setting out binding annual greenhouse processing sectors. gas emission targets for Member States for the period 2021–2030. Seven new Fisheries Local Action Groups (FLAG) were established in 2016 with a total budget of €12 million to 43 research projects were awarded over €28 million in invest in coastal communities over the period 2017-20. December 2016 under the Department’s three public The FLAG Scheme focuses on adding value to seafood good competitive research programmes: products and assisting coastal communities to I Food Institutional Research Measure (FIRM), diversify their economies towards new economic Research Stimulus Fund (RSF) and the Programme activities, particularly those offered by blue growth of Competitive Forest Research for Development and the broader maritime sectors”. (CoFoRD). I The 43 awards involve collaborations between 19 The Independent Review of the aquaculture licensing different institutions and organisations including process recommended in Food Wise 2025 and in the Teagasc, a number of universities and institutes of National Strategic Plan for Sustainable Aquaculture technology. Development, was commenced in December 2016 with I The research investment will provide direct the appointment of an Independent Review Group and employment for 186 people including 65 contract publication of its Terms of Reference. researchers and 83 post graduate research opportunities in the form of PhDs (66) and Masters Milk production in Ireland in 2016 was 6.8m tonnes, an degrees (17). increase of 4% on the 2015 annual total. Minister Creed and Minister of State Andrew Doyle A US-Ireland Research and Development Partnership T.D. led some 30 Irish agri-food companies on a week- Call in Agriculture was opened for the first time in long trade mission to Asia in September. One of the March 2016. The initial Call was a pilot in three priority key focus areas for the trade mission was progressing areas in plant and animal science. The Call enabled market access for Irish meats in China, Vietnam and scientists from the US, Ireland, and Northern Ireland Korea. Minister Creed held a positive meeting with the to develop collaborative tri-jurisdictional research Chinese AQSIQ Minister who committed to expedite applications for submission under the USDA’s National consideration of Ireland’s application for beef access. Institute of Food and Agriculture 2016 Agriculture and In Vietnam and Korea Minister Doyle submitted Food Research Initiative Call for Proposals – a major detailed questionnaires regarding beef access in both competitive grant programme addressing critical countries. societal issues. 4 Annual Report 2016 2016 Main Achievements The extension of our beef market access to the USA to In addition to paying Ireland’s 2016 subscription of include Beef Intended for Grinding (BIFG) was €1.85 million to FAO, further extra budgetary funding approved by the US Food Safety Inspection Services of €986,000 was provided by the Department to the (FSIS) in July 2016. In addition market access for beef FAO in areas where FAO has a particular competence was secured to Canada, New Zealand, and Israel. and which DAFM considers to be of strategic importance. In 2016 Irish Whiskey exports exceeded €500m for the first time. This was an increase of 13.8% on Irish The Department and its agencies contributed to the Whiskey exports in 2015 and brought cumulative Government’s 2016 Action Plan for Jobs by growth of 82.5% over the four years since 2012. The undertaking 20 headline actions, all of which
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