Oireachtas Joint and Select Committees

Wednesday, 2 October 2013

Joint Oireachtas Committee on Foreign Affairs and Trade

Trade Promotion: Discussion (Resumed) with the Irish Farmers Association

4:50 pm

Mr John Bryan:

We are always concerned about the availability of Irish produce. It is important that Irish produce is labelled as Irish. The bio-fuel debate is getting stronger in Europe. The political decision by Germany to close down its nuclear plants while producing more non-fossil fuel has created a problem. Most European states have set a cap of 6% of their land area being set aside for bio-fuel production. The percentage in Ireland is quite low. There was some miscanthus grown for a while but it depended on a subsidy. The most significant alternative generation sector will be wind. While there are a large number of objections to wind farm development, it is hard to see whatever alternative there is, particularly when people are also opposed to fracking, nuclear and fossil fuels. Some compromise will have to be achieved.

It is accepted that Ireland’s welfare standards in live exports are the highest in the world, so much so that some international shippers try to get Irish certification because it is accepted by the US Department of Agriculture, USDA.

The USDA accepts very little from anywhere else. Its standards are high but our standards are higher - Deputy Smith would know this better than anyone else. The Department of Agriculture, Food and the Marine has set the highest standards in the world for storm levels and stabilisers. Dr. Bernadette Earley at Grange carried out some excellent research to show there were no stresses in respect of live exports from Ireland. The investigations included measurement of cortisol levels and everything else. I always say that everything one does in politics is like a game of pool - when one hits one ball, it has 40 effects. When they stopped our cattle going to north Africa, a journey that took six days, they replaced them with cattle from South America that were subject to none of the rules we had and a journey that took four weeks. They banned a trade that was well regulated and that had the highest animal welfare in the world and replaced it with a trade coming from across the globe. One should always look at cause and effect and one must bear in mind that Muslims insist on a certain amount of their cattle being slaughtered in their own manner by people with blessed hands. The trade must be provided from somewhere so the greatest benefit for everyone would be to have it properly regulated with the top boats and the best regulation.

Deputy Byrne asked a simple question. The reality is that the Department deals with trade as well as foreign affairs. Trade is very important to agriculture. We are a small exporting nation. What we are saying here is that the same standards apply within Europe. The Dutch are natural traders, as are those in the UK, and they do not consider agriculture to be important to the same extent that we do. They would be quite happy to sacrifice agriculture to sell more cars, so it is important that a country such as Ireland says that we want fair play. That is why we are here today. People probably underestimate the quality of our land. We are a small country but we have 4.6 million hectares of good agricultural land. We have a massive amount of skill, which we sometimes underestimate. The Deputy referred to the Chinese visit. McDonald's senior management from the US are shocked at the knowledge Irish farmers have regarding genomics and grass types. We take it for granted, but this knowledge of stockmanship should never be underestimated. Our largest assets are land and water. The Deputy referred to infrastructure. Over the years there has been good investment, be it in dairy processing or meat plants. We meet our colleagues from the UK. They want to expand at their end. They have no steel. We are building a giant plant in south Kilkenny that can process nearly 50% more milk than Glanbia does. We have the capacity, so we should never underestimate the value of the infrastructure and the knowledge we have.

The Deputy referred to Ethiopia. The Irish embassies in Africa were very concerned for a long time about distributing aid and helping those countries develop, for example, through giant projects in education. As the game moves on, one must look at using the embassies in those areas, which is why we say there should be more trade attachés in more embassies. The population in Nigeria will grow significantly and there will be a middle class there. I spoke at a function with the last British ambassador to Ireland, who had been in China before he came here, and he said the Chinese middle class was very discerning. It wants high quality standards and does not trust its own. It does not accept something just because it is certified as safe by the Chinese authorities. It wants Irish, American and European standards. Thus, there is a huge opportunity in China.

A few people asked about the value of embassies and trade. Most of those people will not talk to one unless one has an ambassador. There is a need for initial contacts. A delegation from China visited here during the summer and met the Minister for the Environment, Community and Local Government. That is the level they will meet. They will not meet Glanbia or Teagasc. Even if there was a contract to be signed with Keenan's, they wanted a Minister signing. This shows the necessity of an ambassador to make initial contacts. On a trip to China, I saw how important protocol is in that country. One needs a Minister and an ambassador. One can never underestimate the opportunity offered by the use of an embassy and ministerial trips. They might often look big and cumbersome but they open up contacts. Since that trip to China, a couple of Chinese minsters have come to Ireland and trade has grown.

I have answered most of the Chairman's questions. The last one he asked related to demand. I am convinced that as the world population grows, water will become an issue. We visited Australia and New Zealand about three years ago. The Australians are so concerned about depleting their water resources that they have asked farmers to cut the amount of water they use for irrigation by 30%, which will drastically reduce their output. The only thing a farmer in Texas or New Mexico wants to talk to one about is water. Farmers talk to each other and the first question a farmer will ask another relates to water. It is not a question we know the answer to in Ireland because we know we have enough. If one does not have enough, one knows. From that perspective, we have a great opportunity in the growing world middle class. We see significant value in the embassies and in getting in there on time, because this population is growing. We need to tell the story of Ireland. Anywhere I have been with an attaché, be it the US, Spain or China, it has worked. I told the Tánaiste that this was vital work for the Department.

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