To ask the Minister of Agriculture and Rural Development for her assessment of the impact that the current differential pig meat market price between Northern Ireland and Great Britain is likely to have on the growth objectives for the pig sector as outlined in the 'Going for Growth' report.

Mrs O'Neill

I am aware of the difference in the prices paid to pig producers in Britain compared with those paid to producers in the North and that a growth in the differential has coincided with a wider downward trend in European pig prices. Whilst that price differential is a commercial matter and my Department has no remit to intervene, I am aware that the current fall in pig prices is placing our pig sector under considerable pressure and is limiting growth opportunities. Pig farming plays a significant role in the agricultural economy here, and it is important that we work to help the sector be sustainable and build resilience against market volatility. The Going for Growth action plan sets ambitious targets for the local pig sector, and I am hopeful that the sector will meet them. I recently met with local pork processors to discuss access to new trade markets, including China and Australia. My officials are working to secure access to those markets, which will hopefully mean greater returns for the pig sector. It is also hoped that that will mitigate price fluctuations and contribute to growth in the sector. In addition, a key recommendation in the Going for Growth action plan was to have the farm business improvement scheme, which is being developed under the new rural development programme. That will also assist our local pig sector in taking advantage of current and future market opportunities.

Mrs O'Neill

I am happy for the Member to write to me to talk about that. It is an issue that has been raised on a few occasions in the past. I am keen to do everything that we can to protect the interests of the pig sector. We are actively pursuing additional markets, which will obviously help with the price issue. Export growth is what we are targeting. We are disappointed that we have not had the visits from the Chinese officials recently, but we are hopeful that those will happen over the next number of months. I have assured the industry that, if needs be, I will go to China and seek political meetings, if doing so will improve the situation and speed up the time frame of those inspections.

We are also looking towards new markets. Australia is another market that the local industry is very interested in. So, I suppose that, in trying to create new market opportunities, working alongside the industry through the advisers we have on the ground, I think that a combination of issues will hopefully see the industry through what is a difficult time.

Mr Byrne

Given that people involved in pig production have two major bottlenecks, the price of pig meal feeds and the pressure from the banks, can the Minister give any reassurance or encouragement to the pig men in relation to talking to the feed suppliers and, indeed, the banks to give them some space?

Mrs O'Neill

I met the banks just before Christmas to ask them for some compassion and flexibility, initially in relation to the dairy sector, but, obviously that is relevant right across the board, with the pig sector in difficulties too. Whilst I cannot do anything about the market issues that lead to price, we can chase after new markets, as I said. Alongside that, it is about what we can do in-house to assist the industry. I assure the Member that we will continue to do that.

Mr Irwin

Given that pig prices in Northern Ireland are running at about 20p per kilo less than the current UK price, does the Minister accept that that leaves our producers at a big disadvantage and that it is, therefore, unacceptable?

Mrs O'Neill

I am aware of the difference between the price paid for pigs in Britain and here in the North and of the fact that that gap has grown, with local processors dropping their prices by quite a greater degree against the standard pig price. As I said, the price that farmers are paid for their produce is a commercial matter, and the Department does not have a remit to intervene on that issue. Nevertheless, as I have always made very clear, I believe that farmers should receive a fair price for their produce. I encourage all elements of the supply chain to work together to mitigate fluctuations and to facilitate sustainability in local farming, particularly in the pig sector.

Mr Cree

The Minister has touched on this issue, but will she provide an update on the progress of the audit from the Chinese authorities on the pig industry?

Mrs O'Neill

I had a recent meeting with the pig industry on 19 January. I advised them that we were initially expecting the visit to be last week but that that had been postponed. So, we have engaged with the Chinese officials at a political level in China to try to secure that engagement. We have been told that it will certainly be over the next number of months. We were also delighted to host a delegation from Australia in looking towards opening up that market for us, so we are coming at it from a number of angles. Certainly, the industry here is greatly disappointed that Chinese officials have not been here yet for the inspections, given that producers are all in a state of readiness and are very happy to open their doors to show the safe and secure practices that they have. We are hopeful of securing access to those markets. I will do all that I can at a political level to encourage the Chinese visit as soon as possible. Obviously, I will keep the industry up to speed on any developments.