Number of mushroom growers plummets as output remains stable
However, he said the level of output has remained relatively stable as there has been an increase in the scale of operation of the growers remaining in the business in an effort to reduce unit costs.
The minister was responding in a written reply to Cavan Monaghan Fine Gael TD Seymour Crawford.
He had asked Mr Smith if he was satisfied every support possible is given to the industry in view of the difficulties that are occurring with the weakness of sterling.
Mr Smith said the mushroom industry, like all others, has faced challenges due to sterling volatility, but he was satisfied ongoing support was being provided to it through national and European Union schemes.
His department prioritised the mushroom sector for grant aid and had paid grants in excess of €5 million for approved investments of some €14.5m to 190 applicants during the 2000-2006 period, many of which are family farm units.
Under the current National Development Plan scheme (2007-2013) his Department paid grants of €1.24m for approved investments of some €3.12m to 19 applicants in the first round (2008).
In the second round of the scheme, 21 applicants have been approved for grants of €1.3m for approved investments of €3.2m.
Mr Smith said the EU Producer Organisation (PO) scheme is also a vital support for growers with 93% of Irish growers in it.
“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 2000 and 2009, €31.5m was paid to mushroom POs as part of the scheme.
The reform of the EU’s common organisation of the market in fruit and vegetables which came into effect in January 2009 identified a strengthened role for POs as the core part of the strategy for improving the competitiveness of the sector in the future.
“The new measures provide greater flexibility and increased funding for some of the approved actions,” he said.
