Annual Report 2007of the Minister for Agriculture, Fisheries and Food

MISSION STATEMENT(Statement of Strategy 2008-2010)

“To lead the sustainable development

of a competitive, innovative,

consumer focussed agriculture, food,

fishery and forestry sector and

contribute to a vibrant rural and coastal

economy and society.”

Contents

Page

KEY ACHIEVEMENTS UNDER 2005- 2007 STRATEGY STATEMENT 3

REVIEW OF 2007 8

ORGANISATION OF THE DEPARTMENT 11

2007 DEVELOPMENTS 15

Agri-Food Development and Trade in a National and International Framework 16

EU and International Negotiations 17National Policy Developments 20Food Industry 22Innovation 23Commodity Reports 24

Food Safety, Animal Health and Welfare, Plant Health 32

Food Safety 33Animal Identification and Traceability 35Animal Welfare 36Animal Health 37Laboratory Service 40Plant Health 43

Rural Economy and Environment 44

Promoting Sustainable Farming 45Measures assisting Structural Change 49

Schemes Delivery, Customer Service and Financial Management 50

Scheme Operations 51Customer Service 52Financial Management 56

Operational Capabilities and the Modernisation Agenda 60

Organisational and Human Resource Management 61Developing IT Capability 64

Sea-Fisheries, Aquaculture, Fishery Harbours and Coastal Zone 66

Major Developments in 2007 67Environmental and Conservation Management 69Harbour and Coastal Zone Development 70

APPENDICES 73

A State Bodies 74

B 2007 Financial Statements 76

� Vote 31 77

� National Development Plan 79

� EAFRD 80

� EAGF Guarantee Fund 81

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2

Key Achievements under

Goal 1

Agrifoods exports97% of Irish Beef

Innovation

Consumer Food Products

17% increase from€7.3 billion to €8.6 billiondestined for higher

value export markets

Innovation and Research Funding increasedfrom €69 million to €99.6 million.

16% increase in exports to €1.8 billion

Agri-Food Development and Trade

Policy Developments

� Agreement on Financial Perspective in 2005allocated over €371billion for CAP andRural Development measures

� AgriVision 2015 Action Plan –nationalstrategy for the development of agricultureand food sector - published in March 2006and 77% of its actions implemented by end2007

� EU Rural Development Programme agreed

� The reform of the common marketorganisations virtually completed and itsoperations simplified by merging 21CMOs into a single CMO

� State Aids policy improved by increasingindividual aid limits by 12%

3

2005- 2007 Strategy Statement

Goal 2Food Safety, Animal and Plant Health

21% reductionin bovine TB over period 2003-07 compared to the previousfive year period

700

600

500

400

300

200

100

0

Brucellocis

Num

ber

ofH

erds

Animal Disease Trends 2005 -2007

BSE

2005

Scrapie

2006 2007

� Ireland’s high plant and animaldisease-free status maintainedthrough proactive departmental controlsand activities

� Over 200 food safety alertssuccessfully handled by the FSAIand the Department

0

4

Goal 3

Increased from 47,000 to 54,000

16%

33% increase

Participation in environmentallyfriendly farming systems

-good for environment, animal and plant health

New 2007-2013Rural Development Programme

in funding to €6billion

Agriculture net farm income(operating surplus) rose by in 2007

Environment and Rural Development

Direct socio-economic contribution offorestry is

Key Achievements under

Land converted to organicproduction rose byto 41,122 hectares

€472million

Improved Cross Compliance Adherence

12%

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Goal 4Schemes Delivery, Customer Service andFinancial Management

DAFF’s high standard offinancial managementquality assured byindependent national andEU audit and certifyingbodies

2005- 2007 Strategy Statement

€1.9 to €2.2 billion in direct paymentsissue annually to 125,000 farmers

Service and Paymenttarget deadlines achieved

Ireland is second from bottom infinancial disallowance table for EU 15

6

Goal 5Operational Efficiency

Expanded IT systemsUnderpin our schemes delivery

Provide increased on-line facilities for customers

400

ISO 90014

€5.7 to €6.2 million

CSPVG satisfied with progressachieved on our ModernisationAgenda Action Plan

Staff numbers reduced byand over 500 redeployed to newpriority activities

Funding on staff training anddevelopment increased by over8% from

attained inareas of operationswith others pending

7

Review of 2007

2007 was marked by the agreement and publication of a number

of major policy documents which provided substantial funding to

ensure the successful development of the agri-food sector into

the next decade. Another important development was the

assignment of responsibility for the fishery sector to this

Department in October 2007.

The 2007-2013 National Development Plan was launched in

early 2007 and was followed in July by the publication of the

Rural Development Programme covering the same period.

These two development programmes formed an integrated

package to address the development of the agriculture and food

industries. The overall level of funding provided amounted to

€8.7 billion of which €6.2 billion was provided by the Exchequer.

This unprecedented investment was targeted at four sub-

programmes to enhance competitiveness (€1.7bn), the

environment (€6bn), the food industry (€289m) and agri-food

research (€641m).

During 2007, all of the sectoral initiatives agreed under the

AgriVision 2015 Action Plan and Towards 2016 were significantly

progressed, so that by year-end, 77% and 70% respectively of

the commitments contained in these documents had been

implemented.

Measures taken to underpin the continued development of the

dairy sector included the successful Milk Quota Trading Scheme

which facilitated the exchange of 200 million litres of milk or 4%

of the national pool to committed dairy farmers. The

competitiveness of this sector was further enhanced by the

Exchequer funding provided for 19 capital investment projects

in dairy processing plants. This investment package will enable

the industry to improve productivity, maintain markets and secure

new international trading opportunities.

A range of initiatives for the beef sector were also progressed.

In April, the €50 million Capital Investment Aid Scheme for beef

and sheepmeat primary processing plant, was launched. It is

estimated that this measure, which is directed towards improving

efficiency and competitiveness, will generate overall capital

investment of €120 million in the meat processing sector. During

2007, EU agreement was secured for an Animal Welfare,

Recording and Breeding Scheme for Suckler Herds. This €250

million scheme will come into operation in 2008 and has the dual

objectives of improving welfare standards and the quality of

breeding animals.

Non–price strategies also have a vital role in meeting evolving

market challenges. So during 2007, the Department continued

to express its strong preference for origin labelling for all meat to

the EU Commission; it enhanced the beef and lamb quality

assurance schemes; Protected Geographical Indication was

awarded to Irish Connemara Hill Lamb; and overseas trade

missions successfully facilitated access to the valuable South

African and Saudi Arabian markets.

Food and drink exports performed exceptionally well in 2007.

Their value increased by over €400 million in 2007, bringing their

total value to €9.2 billion. The growth in the value of exports

was driven by the strength of the global markets, further

diversification of prepared foods and a strong performance in

the beverage sector. Dairy products were particularly buoyant

and made significant inroads on the Asian markets. This resulted

in the Government target of doubling food exports to Asia being

achieved, two years ahead of target. The strength of this

performance from our indigenous manufacturing sector is

notable given the competitive pressures facing manufacturing

firms generally.

8

Brendan Smith, T.D.,Minister for Agriculture,Fisheries & Food

Tom MoranSecretary General

Review of 2007

Food safety continued to be safeguarded through the effective

implementation of the Hygiene Package which involves risk

based inspections on registered operators, independent audit

programmes and training on hygiene practices on food handling.

In addition, a comprehensive Multi –Annual Control Plan was

developed and submitted to the EU Food and Veterinary Office

(FVO) towards the end of 2007. This provided details on the

safety controls operated for food (including seafood), feed,

animal health and welfare and plant health and will be used as

a basis for future FVO audits on our systems.

The Department continued to operate a wide range of other

schemes and programmes which contribute to the development

of a vibrant agri-food and fishing sector. Almost €2 billion was

paid to farmers in 2007 in direct payments relating to their

entitlements primarily under the Single Payment, Disadvantaged

Areas and Rural Environmental Protection schemes. These

decoupled payments have been instrumental in developing a

commercial focus in farming as well as ensuring that farmers

farm in a manner which will enhance the environment,

biodiversity and water quality. These latter aspects are monitored

under the compulsory cross-compliance farm inspections which

check for compliance under 19 Statutory Management

Requirements.

Animal disease controls continued to operate very successfully

in 2007. Intensive contingency controls ensured that Ireland

remained free of exotic diseases despite outbreaks of Avian

Influenza, Foot and Mouth and Bluetongue in the U.K. The

enhanced disease eradication programmes operated in 2007

have resulted in no confirmed cases of brucellosis, a reduced BSE

incidence, one additional herd with Aujesky’s Disease and an

effective Scrapie genotyping programme. The maintenance of

high standards on both animal and plant diseases is essential for

public health and market access.

Under the new Programme for Government, the Department

was given additional responsibilities for the food industry and

animal welfare but the most significant change to its remit was

the assignment of responsibility for the overall development of

the sea-fishing industry. This has broadened our remit to include

the infrastructural development of the commercial fleet, the

seafood industry and harbours as well as activities such as fish

stock conservation and aquaculture.

Overall, 2007 was a successful year for policy development, service

delivery and operational performance and an unprecedented one

in terms of investment in the agri-food industry. Indeed, the

progress made in 2007 has considerably added to the solid

groundwork of previous years and should lead to further positive

development of the industry in the imminent future.

9

Tony Killeen, T.D.,Minister of State for Forestry andFisheries

Trevor Sargent, T.D.,Minister of State for Food andHorticulture

10

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Carrick On-Shannon

Drumshambo

Castlerea

Longford

Navan

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Athlone

Tullamore TullamoreNaas

TallaghtMaynooth

Roscommon

Ballina

Castlebar

Claremorris

Tuam

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Loughrea

Nenagh

Ros a mhil

KillybegsDonegal

Letterkenny

Raphoe

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Ballybay

CAVAN Dundalk

Drogheda

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Wicklow

Carlow

Backweston

Enniscorthy

Kildalton

KilkennyThurles

Dunmore East

Waterford

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Clonmel

Tipperary

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Main Department Offices

Local Offices

Laboratories & Field Stations

Fishery Harbour Centres

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Jim BeecherAssistantSecretary General

Denis ByrneAssistantSecretary General

Tony BurkeAssistantSecretary General

John FoxAssistantSecretary General

John GillespieAssistantSecretary General

Michael GunnDirector ofLaboratory Service

Seamus HealyAssistantSecretary General

Martin HeraghtyAssistantSecretary General

Aidan O’DriscollAssistantSecretary General

Cecil BeamishAssistantSecretary General

Philip O’ReillyAssistantSecretary General

Paddy RoganChief VeterinaryOfficer

Tom TeehanChief Inspector

As at 31 December 2007, the Department had a staff complement of 4,530 people which

equates to 4,273 full time equivalents as 626 persons workshared There were 2,495

administrative staff, 348 in veterinary grades, 269 in inspectorate grades, 1,049 in

technical grades, 285 in specialist grades and 84 in other grades.

The senior management team is the Management Advisory Committee (MAC), headed

by Mr. Tom Moran, Secretary General and is comprised of ten Assistant Secretaries

General, the Chief Veterinary Officer, the Chief Inspector and the Director of Laboratory

Service.

Their areas of responsibility are set out in the organisation chart on the following page.

MANAGEMENT ADVISORY COMMITTEE

Organisation of the Department

Tom Moran Secretary General

MAC Member Deputy Function Head of Division Location

Meat Policy Mick Cronin Dublin/Portlaoise

Jim Beecher Meat Hygiene & Tom Loftus PortlaoiseLivestock Animal By-ProductsProducts

Milk Policy Philip Carroll Dublin/Portlaoise

Food Industry Marian Byrne DublinDevelopment

Food Safety Liaison Joe Shortall Dublin/CavanMartin Heraghty and EquinesFood and,Corporate Affairs Crop Policy, Biomass, Bridie O’Neill Dublin/Portlaoise

& State Bodies

Corporate Affairs Andy Irving Dublin/Portlaoise

Rural Development Patricia Cannon Dublin

EU/Trade Policy Brid Cannon Dublin

EmbassiesAidan O’Driscoll Embassies Jarlath Coleman BrusselsEU, International, Brendan Nevin LondonEconomics and Planning

ParisRomeBerlinGenevaMadridWarsawWashington

Economics & Planning Kevin Smyth Dublin/ Portlaoise

Management Services Breffini Carpenter Portlaoise

John Gillespie Personnel Bert O'Reilly Dublin/ PortlaoiseHuman Resourcesand Legal Accommodation, Danny Carroll Dublin/ Portlaoise

ISO, Health & Safety

Legal and Land Services Randall Plunkett Dublin/Cavan

IT - Direct Payments Sean Keevey Dublin/ PortlaoiseSystems (IACS)

Philip O’ReillyInformation IT- Fisheries & Forestry Christy Philpott Johnstown CastleTechnology Systems

IT- Infrastructure Robert Butler Dublinand Operations

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Organisation Chart as of 31st December 2007

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MAC Member Deputy Function Head of Division Location

IT- Customer Financial Joe Hanly Dublin/ Portlaoise& Online Services

IT - Animal Health & Mick Bunyan Dublin& Traceability Systems

Tony Burke Finance Brendan Gleeson Dublin/ PortlaoiseFinance & Audit

Accounts Geraldine Mullen Cavan

Internal Audit Tom Medlycott Dublin/ Portlaoise

Agriculture Structures Michael O’Donovan Johnstown Castle

Single Payment Paud Evans PortlaoiseJohn FoxDirect Payments & Single Payment Entitlement Paul Dillon PortlaoiseAgri-Environment

Single Payment Andy McGarrigle Castlebar/ Portlaoise

Integrated Controls Al Grogan Dublin/ Regions

Agriculture Environment Dan Gahan Johnstown Castle, Regions& Structures Donal Coleman

Denis Byrne Beef Control Tom O'Hanlon Johnstown CastleFarm Investment andForestry On-Farm Investments, Mick Prendergast Johnstown Castle

Subsidies & Storage

Forest Service Diarmuid Mc Aree Johnstown Castle

Forest Service Operations Ronan O’Flaherty Johnstown Castle

Forest Service Policy Bridgeena Nolan Johnstown Castle

Cecil Beamish Seafood Policy & Josephine Kelly ClonakiltyDevelopment

Sea Fisheries Administration Paschal Hayes Clonakilty

Coastal Zone Management John Quinlan Clonakilty

Engineering Gerard Farrell Dublin

ERAD (Admin) Richard Healy Maynooth

Animal Health & Welfare Stephen Fitzpatrick Dublin

Animal Health & Welfare, Dermot M Ryan DublinDistrict Veterinary Operations

Beef Assurance Scheme Martin Farrell Maynooth

Fisheries andCoastal Zone

Seamus HealyAnimal Health,Welfare andTraceability

MAC Member Deputy Function Head of Division Location

Dairy Regions Vacancy Portlaoise

Dairy Headquarters John Doody Dublinand Laboratories

Pesticide Registration Dermot Sheridan Backweston

Pesticides, Plant Health and Dan O’Sullivan BackwestonSeed Testing Laboratories

Feedingstuffs, Fertilisers, Dermot Ryan MaynoothGrain, Pigs & Poultry

Livestock, Beef & Ignatius Byrne Maynooth/ PortlaoiseSheepmeat

Seed Certification Gabriel Roe Backweston

Crop Variety Testing Nicholas McGill Backweston

Horticulture & Plant Health Michael Hickey Maynooth

Research, Food & CODEX Tony Smith DublinCo-Ordination

Specialist Farm Service, Matt Sinnott Dublin/ PortlaoiseEnvironment & Evaluation

Crop Production & Safety Kevin Cassidy Maynooth

RVO North West Oliver McDonagh Sligo

RVO North East Michael Fallon Meath

RVO South East John Murray Waterford

Veterinary Service Audit Pat Flanagan DublinUnit

ERAD – Brucellosis Garry O’Hagan Dublin

ERAD - TB Margaret Good Dublin

Veterinary Public Health – Paula Barry Walsh DublinBeef & Sheepmeat

Veterinary Public Health - Dave Nolan DublinPigmeat & Poultrymeat

National Disease Control Billy McAteer DublinCentre & VeterinaryInternational

TSE, Scrapie & Animal John Griffin DublinBy-Products

Veterinary Zoonoses, Pat Brangan DublinAnimal Health & Welfareand Medicines

Central Meat Control Paula Barry Walsh Backweston

Regional Veterinary Regions, LongtownLaboratories and Farm

Bacteriology/Parasitology John Egan Backweston

Pathology Paul Collery Backweston

Virology Pat Lenihan Backweston

Tom TeehanChief Inspector

Dave BeehanDeputy ChiefInspector

Paddy RoganChief Veterinary Officer

Michael GunnDirector of Laboratories

Martin BlakeMartin O’SullivanMichael SheridanDeputy ChiefVeterinaryOfficers

John FerrisDirector ofVeterinaryLaboratories

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Director of Agriculture Appeals Office: John Murphy

15

2007GoalsGoal 1

Agri-Food Development and Trade in aNational and International Framework

“Develop an internationally competitiveconsumer-focused agri-food sector andsupport and facilitate trade in agricultureand food.”

Goal 3

Rural Economy and Environment

“Promote the development of the ruraleconomy and of environmentally friendlyand sustainable systems of agriculture,forestry and food production and assiststructural change”.

Goal 2

Food Safety, Animal Health andWelfare, Plant Health

“Ensure the highest standards of foodsafety and consumer protection, animalhealth and welfare and plant health.”

Goal 4

Schemes Delivery and FinancialManagement

“Operate all our schemes and programmes inan efficient and effective manner, and ensurethe highest standards of corporate andfinancial management and accountability in allour activities”.Goal 5

Operational Capabilities and theModernisation Agenda

“Develop our human and physical resources,our operational capabilities and ensure thedelivery of quality service to our customers,both internal and external while implementingGovernment policy on decentralisation andpublic service modernisation”.

Sea-Fisheries, Aquaculture,Fishery Harbours and Coastal Zone

“Maximise the long-term contribution of theseafood sector to the economies of thecoastal regions, support and manage thesustainable use and development of Ireland’smarine territory and deliver nationalsustainable marine research capability”