Mr. John Bryan:

It was nice to see Clare win. We will loan the cup for a year or so, and hopefully it might only be "or so".

I thank the Chairman for inviting us to the meeting and we appreciate the opportunity because the IFA considers trade to be very important.

I wish to focus mainly on the opportunities and challenges that face the agrifood sector in the international market place, as the sector prepares to expand. The economic downturn has clearly shown that as a small open economy, Ireland's recovery is being driven by the exporting sectors, with the agrifood sector as a key player. The agrifood sector accounts for more than 60% of Irish owned exports, provides enough food for 30 million people and is underpinned by production at farm level. Farming, the food industry and the services industries support an estimated 300,000 jobs across all regions of the country.

Since 2009, Irish agrifood and drink exports have grown by more than €2 billion. In 2012, despite the farming community facing severe weather conditions and the resulting fodder crisis, exports reached a record level of more than €9 billion for the first time. The value of exports in the first six months of 2013 have shown a further 8% growth, with predictions by Bord Bia that we will reach €10 billion this year. This comes at a time when Ireland is experiencing a general fall in manufacturing exports. Ireland's agricultural exports are mainly driven by our beef and dairy sectors, where we export over 80% of output. In addition, sheep, pigmeat and horticulture exports are also very important and contribute significantly to gross agricultural output, GAO.

Under Food Harvest 2020, the strategy for the agrifood sector, an export target of €12 billion has been set. It was intended to reach it by 2020. At the time, the Minister for Agriculture, Fisheries and Food was Deputy Brendan Smith. The IFA was very supportive of the target. At the rate we are going we will reach the target sooner, which is important for the economy. The ambitious target is underpinned by growth in output and value of primary production as well as strong growth in value-added food products. The progress and growth of the past three years demonstrates we are on course to achieve these targets.

According to United Nations projections, the world population will grow to 9.6 billion by 2050. To meet food demand, the Food and Agriculture Organization, FAO, is projecting production would need to increase by more than 60% over this period and more likely between 70% and 80%. This massive growth will undoubtedly create major new market opportunities across the word for a food exporting country such as Ireland. The end of milk quotas in 2015 will provide a great opportunity for our low cost, grass-based producers to expand production. With our grass-based production systems, agriculture in Ireland is more sustainable than many other exporting countries. As consumers and policymakers become more conscious of where food comes from and how it has been produced, this is an advantage on which we can capitalise further into the future.

A number of initiatives have been developed to capitalise on our green image, in particular the sustainability of our high quality food and drink exports. Bord Bia has developed a sustainability charter, Origin Green, to help Irish food and drink suppliers drive their exports. Ireland is a country well suited to sustainability with one of the lowest carbon footprints in the world per kilo of beef or litre of milk produced. A key challenge for the Government is that the proposed climate change legislation would not stifle the opportunity for sustainable growth in the agrifood sector. In addition to the growth in food exports, associated businesses in agri-engineering are also expanding rapidly.

Last year, I participated in the agrifood trade mission to China led by the Minister for Agriculture, Food and the Marine, Deputy Coveney. Irish agrifood and related exports to China have grown in value, from €167 million in 2010 to €323 million in 2012, an increase of 93%. With a growing and increasingly urbanised population, I saw at first hand the opportunities that are emerging in new markets like China for higher value, protein-based products. There is huge pressure in China due to the shortage of water. The country has no capacity to feed its 1.3 billion people. During the trade mission, a memorandum of understanding was signed on agriculture and fisheries co-operation between the Ministry of Agriculture of the People's Republic of China and the Department of Agriculture, Food and the Marine. This provides a framework for the strengthening of the bilateral relationship between Ireland and China in the area of agriculture and fisheries.

Our ambassadors, embassies and agriculture attachés have a hugely important role to play in terms of trade promotion and market access for our agriculture export products. It is critical that the positive image of Irish agriculture and Irish food production is reinforced at every opportunity. By doing that, familiarity with and knowledge of the Irish food sector will grow and we will have a head start on capturing new markets. Agricultural attachés have a particularly important role to play by working directly with importers and departments of agriculture abroad to establish market access for Irish produce. As part of its business, the IFA travels a great deal around the world and we work closely with the Irish attaché in the United States and other areas to meet companies interested in purchasing Irish food. It is important those attachés are retained. Our seven agricultural attachés, who have an in-depth knowledge and understanding of the agrifood sector, are particularly important in dealing with complex issues such as market access and veterinary certificates for both existing and emerging foreign export markets. They also have an important support role to play as ambassadors in trade promotion and information briefing. The embassy structure is very important in facilitating access to customers for commercial food companies. Bord Bia, the Irish Food Board, plays a vital role in the promotion and marketing of Irish food and drink across the globe. It has overseas offices, strategically located in London, Paris, Milan, Düsseldorf, Madrid, Stockholm, Shanghai, Moscow and New York. Bord Bia works hand in hand with our ambassadors and embassies.

The EU, especially the United Kingdom, is and will remain Ireland's most important trading partner for the agrifood and drink sector. We must continue to focus on increasing our market presence and the value of the food we export into the EU market. The promotion by Bord Bia of Irish beef in the German market has led to an increase in the value of exports to this high value market of €72 million or a fivefold increase since 2009. The decline in food production across other member states in beef, sheep and pigmeat presents an opportunity for increasing Irish exports into high value markets. Trade promotion initiatives must continue to be strongly driven within the EU market.

The IFA has a clear view of the opportunities and threats that relate to trade. We have always maintained that a level playing pitch and equivalence of standards is very important. In that context we have concerns about some of the trade negotiations. With the ongoing failure to reach a conclusion to the WTO multilateral trade talks, the EU has pursued a policy of bilateral trade deals. While these deals can provide opportunities for both parties, it is critical that trade agreements are not pursued which would undermine the competitiveness of Irish food production, with negative consequences for producers, consumers and employment.

In particular, the IFA has major concerns over the damaging impact of potential EU bilateral trade deals with the US, Canada and the Mercosur trading bloc. The IFA is extremely concerned that the EU trade Commissioner, Karel De Gucht, will sacrifice the agriculture sector in countries such as Ireland and France and use agriculture as a bargaining chip in both the Transatlantic Trade and Investment Partnership, TTIP, trade negotiations between the EU and the USA and bilateral negotiations between Canada and the EU.

In the EU bilateral trade talks with Canada, Commissioner De Gucht appears ready to inflict severe damage on the Irish and European livestock sector with a substantial increase in beef imports from Canada. During the summer the IFA travelled to Canada to meet the Canadian trade department and it is interested in cherry-picking the market and dumping beef at certain times. That cannot be allowed to happen. There is a real fear that large concessions to Canada and the US on beef imports would severely damage Ireland's agrifood sector and threaten thousands of jobs. As the largest beef exporter within the European market, a deal involving a substantial increase in beef imports from the US and Canada would inflict severe damage on the Irish livestock sector.

Maintaining our high standards in Europe is a major issue in the trade negotiations. I refer to standards on issues such as food safety, traceability, environmental protection and animal welfare. European producers and consumers will not accept food imports from production systems where the use of hormones in beef, BST growth promoters in milk and the beta-agonist drug, ractopamine, in cattle and pigs - all banned in Europe - is common practice.

Europe cannot agree to any imports which fail to meet EU standards on the critical issues of food safety, traceability, environmental protection and animal welfare. The IFA's stand is that there must be equivalence of standard, not mutual recognition. The two standards are too far apart and mutual recognition is unacceptable.

The IFA has called on the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, and the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney, to intervene strongly at the highest level to prevent what is being flagged as a very bad deal for Irish and European livestock farmers. I have also raised this important issue on numerous occasions with the Taoiseach and the Tánaiste.

A recent IFA study of the importance of the cattle and sheep sectors to the Irish economy by Professor Alan Renwick from UCD shows that the €2.3 billion output at farm gate level creates a total output of €5.7 billion for the Irish economy. In addition, the Irish cattle and sheep sectors support over 100,000 farmers and over 50,000 jobs in every parish across Ireland.

In view of the high sensitivity of the EU market to beef imports, the EU must rule out any significant increase in imports in this sensitive product area. Any increase in imports into the European Union will be very damaging economically and environmentally and will have social consequences across rural communities in Ireland and western Europe that depend on livestock production for their livelihoods. The IFA is calling on this committee to do everything in its power to see that issues concerning our strong performing export-orientated agriculture sector are brought to the fore and rigorously defended.

A major reduction or elimination of import tariffs or a significant increase in a tariff free quota for beef or both, as demanded by the Mercosur group, would significantly cut the EU import price for beef. This, in turn, would severely damage beef prices on the EU market, particularly for an exporting country like Ireland.

Reports from the EU Food and Veterinary Office highlights the ongoing failure of Mercosur countries, including Brazil, to meet EU producer and consumer standards on the key issues of food safety, animal identification and traceability, animal health, environmental standards and disease control.

The value of Irish food exports has continued to grow in 2013 and will be close on €10 billion by year end. The message is clear: Irish agriculture is performing but it is in need of support if it is to maintain growth and drive exports, jobs and economic activity.

As Ireland's largest indigenous sector, the growth of the agrifood sector has a hugely positive impact on the Irish economy, both at local and national level. Together with the other key agriculture stakeholders, the Department of Foreign Affairs and Trade has a very important role to play in supporting the expansion of the Irish agrifood sector through the co-ordination of trade promotion in existing and new markets. In addition, Ireland must be strong in defending the interests of the sector against policies that would unfairly undermine its competitive position.

Our position has always been clear. The EU has put very large levels of regulation in place, whether it is food security, animal welfare or environmental standards, that have resulted in a significant cost to the farmer on the ground. These costs are not shared by industrial farmers in the United States, Canada, South America or New Zealand and, therefore, we say only products that meet those same standards can be allowed into this country.