Oireachtas Joint and Select Committees

Tuesday, 21 May 2019

Joint Oireachtas Committee on Agriculture, Food and the Marine

Future of the Beef Sector in the Context of Food Wise 2025 (Resumed): Bord Bia

Mr. Joe Burke:

I will tackle Senator Lombard's first question on the live export trade and whether there is a strategy to maximise numbers. Our focus tends to be on analysing the markets and categories and providing market insights to commercial exporters regarding the potential that exists within those markets. Our focus is also on meeting new contacts within those markets, be they mature or existing markets for calves or new international markets, and gaining access through organising trade missions in conjunction with the Department and the Minister. Another focus is on co-ordinating inward buyer visits where possible. This has been a useful vehicle for kick-starting trade in some markets.

In terms of specific numbers, some of the markets that had appeared to be opening up and presenting new opportunities are volatile at the moment. The difficult war-like situation in Libya, for example, is limiting opportunities. As a result of a political decision, no imports are being allowed in Turkey at present. The issuing of import licences has been suspended. The visits we have had from Turkey over recent weeks have given us hope that Turkey looks set to issue licences and open up imports again. We have the contacts in place to maximise the opportunities for Irish exporters.

The Department of Agriculture, Food and the Marine levy, which is a veterinary sign-off that clears animals for export, has been reduced from €4.80 to €1.20 per calf on foot of some lobbying in recent years. That has had a significant benefit. There are approximately 300 calves on every lorry or truck with calves that leaves the country. Therefore, the reduction in the levy has led to a net saving of more than €1,000 to the exporter in each case. The Bord Bia marketing levy of €1.90 per live bovine animal exported is also significant. This means a budgetary contribution of more than €500,000 is made as a result of live exports across all the animals that are exported. We invest that on behalf of the livestock sector in the various activities I have discussed, including the market insights and the promotional activity. That is the situation in relation to the Bord Bia levy.

The suckler herd is a key area of focus. We have taken on board with interest the trend of decline that has been evident in recent years. There was a decline of 45,000 in suckler calf registrations last year, and there has been a decline of 35,000 so far this year. More animals from a dairy background are coming through the system. The suckler sector is part of our point of difference. It is one of the unique selling points of Irish beef. Many suckler-based animals are seen in Bord Bia's marketing materials that promote Irish beef. When we bring in customers, this sector tends to resonate well with buyers. We tend to focus on bringing them to suckler farms so they can see the commitment of farmers to breeding good stock and bringing animals through the system.

The positive attributes of the suckler system include the welfare related benefits of having animals with their mothers at grass for between six and eight months. We have brought those benefits to the level of applying for an EU promotional campaign. The campaigns that are taking place in Asia are more about discovering the potential of these markets and utilising the funding that is available through the EU. This is another opportunity to maximise the benefit of the suckler herd. We have applied for EU funding, but there is no guarantee that our application will be successful. We have seen the opportunity that exists within the Italian and German markets. We have applied for this campaign in respect of suckler beef. We see this as being potentially useful. We hope we will be successful. In recent years, we have seen that, on balance and on average, we have been successful with just one in four of these applications. In this case, we have used our consumer research in these markets to target affluent consumers who represent an ideal potential customer for this type of product on the basis that these animals come from a high-welfare sustainable background. These unique attributes mean that our campaigns resonate well with such consumers.

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