Oireachtas Joint and Select Committees

Tuesday, 8 December 2020

Joint Oireachtas Committee on Agriculture, Food and the Marine

Impact of Brexit on the Agri-food Industry: Discussion

Mr. Tim Cullinan:

As to how prepared are we, that is a very good question. We have heard consistently from the Minister, Deputy Coveney, that we are prepared. Personally, I have concerns around how all of this is going to work. The Senator is right. Obviously, a lot more people will be needed for the issuing of certificates for export and there will be IT systems all around that also, so I sincerely hope that we are prepared. I have been asking this question for quite a while. I am told that there are more facilities here in Dublin Port and in Rosslare Europort. This is what we are hearing from the Government so I sincerely hope that is the case.

With regard to the agri-food industry, we will find alternative markets for the dairy sector much faster than for the beef sector. I am sure members are aware that a substantial amount of dairy produce is exported to Asia and throughout North Africa and all over the world. There is a more diverse portfolio of exports from the dairy sector than from beef. That is important. There is no point in saying anything else. It is a very disruptive process that has been foisted upon us and is not of our making.

The larger milk processors were developing a joint venture of a cheese plant in Waterford and it is very concerning that while they had obtained permission to build that plant, An Taisce has got leave for a judicial review around that. This is something the Government needs to look at. This Irish company, in a joint venture with a Dutch company, is building a plant to get Brexit ready. It is a €200 million project. Here we are this year in a country where unemployment hit 26% at one stage, and it is still at 16%, but a company that wants to invest €200 million finds that An Taisce is holding up the project. This is concerning from the dairy sector's perspective.

On the sentiment of the UK market, we have been doing a lot of work with our colleagues in the National Farmers Union in the UK, and with our colleagues at the Ulster Farmers Union in Northern Ireland. From a farming point of view, they would much prefer to see beef coming from Ireland or Northern Ireland into the UK rather than seeing a trade deal that will bring cheap beef from South America into the UK because if that happens, the British farmers know that their market is gone. I looked at the figures just last week and the British market has consistently returned 35 cent a kilogram ahead of the price in Ireland. It is a very important market. They want to maintain that price for themselves. The only way they can maintain it is if the beef is coming from Ireland.

As for the consumer, I have spoken with some of the major retailers and they want a plentiful supply of Irish beef going in there also. In that space we are working on developing a premium product. I believe there is no better premium product than the suckler brand. I am sure the Deputy is aware that Bord Bia has agreed, and together with the Department, we are in the process of setting up a group to establish a brand around suckler beef. If developed, that brand could create a premium and get it into the higher end of the market. This will all be a challenge but this is where it is at the moment.

Comments

No comments

Log in or join to post a public comment.