Mr. Mark Zieg:

Irish beef exports in 2014 totalled 524,000 tonnes carcase weight equivalent. It is estimated that organic beef accounted for approximately 2,800 tonnes in total production. This was marketed both on the home market which is dominated by retail sales, as well as exports to retail and value added customers in markets such as Britain, Germany and the Netherlands.

Bord Bia's promotional strategy for Irish beef is centred around finding differentiated and premium markets and promoting Irish beef with higher value customers in those markets. Organic beef is very much part of this strategy representing a high value, differentiated, niche offering. Consumer perceptions of organic are very well aligned with the natural and sustainable image of Irish beef. In recent research in some of our key markets such as Germany, Holland and Italy we have found high correlations in positive opinions of Irish beef among consumers with a higher propensity to purchase organic beef.

Earlier this year, Irish organic beef secured a listing with one of our largest retail customers in Germany. Bord Bia supported the successful brand development and listing of this product. In Britain we are currently undertaking a consumer insight and branding project for an Irish organic beef range with a leading online retailer. This represents an important opportunity for Irish beef.

According to Kantar Worldpanel's research, organic and branded retail have been identified as two of the most promising growth trends in the UK beef retail category.

In the context of the future outlook, it is estimated that organic beef production in Ireland could grow by as much as 40% over the next five years, as a result of the high uptake in organic conversion among beef farmers. Feedback from the contact our overseas offices have had with existing and potential customers and from their discussions with exporters suggests this additional volume will be well received in meeting the growing international demand for organic beef. Specifically we see opportunities in the retail and food service sectors in Northern Europe, the USA and Asia. That said, full access to the US market for Irish manufacturing beef and certification of Irish beef plants to export to China will be a prerequisite to unlocking this potential. On the production side, seasonality of supply remains an issue as most customers require a year-round supply capability. This is a challenge that the entire sector will need to address.