Mr. Declan Fennell:

The Irish sheep sector has delivered a solid performance over recent years, with the value of exports growing at a faster rate than volume. Since 2009, total sheepmeat exports increased by 25% to reach €218 million, while volumes have reached 43,000 tonnes, equivalent to a 4% increase.

The UK and France continue to be the core markets for Irish sheepmeat, accounting for 60% of total export volumes. The success of Irish sheepmeat exports can be attributed to the shift away from trading in carcases towards developing prime cuts. Our ability to deliver a product according to an exact market specification has enabled us to optimise our product and market mix. This has ultimately delivered a better price return back to the farmer.

Notwithstanding this, the Irish sheep sector and, indeed, the broader European industry are faced with a universal challenge, which is how we attract younger, lighter buyer consumers to the lamb category. According to Kantar Worldpanel data, 65% of Irish lamb shoppers are over 45 years of age. This trend is not unique to the Irish market. Younger consumers lack exposure to lamb and knowledge on how to prepare and cook this meat. In an initiative to address this challenge, Bord Bia, in partnership with our counterparts in France and the UK, launched a three year campaign to promote lamb across six EU markets earlier this year. The Lamb - Tasty, Easy, Fun campaign targets consumers in the 25 to 45 year age group in the six EU markets involved and aims to highlight the importance of European lamb production and its versatility as an everyday meal.

From a consumer perspective, we need to recognise that lamb is relatively more expensive when compared to other offerings in the fresh meat category and thereby commands a smaller share of retail shelf space. While organic beef is relatively successful, organic lamb faces more challenges, as I have outlined. In general, conventional lamb sales are down in the UK and throughout the rest of the EU. Nevertheless, it is important to stress there are some niche opportunities for Irish organic lamb in mainstream retailers and specialist organic stores in our main export markets. However, listings of organic lamb in these outlets are often of small volume with a limited range of one or two types of cut, such as leg or rack of lamb.

Recognising that the number of organic sheep in Ireland is set to increase as a result of the GLAS scheme, Bord Bia has put in place a programme of activities to seek to identify and develop market opportunities for organic lamb. In partnership with the Irish processing industry, and through the network of our overseas offices, Bord Bia is engaging in a number of initiatives in trade research, brand development and market prioritisation to further the development of the organic sheepmeat market.