Oireachtas Joint and Select Committees

Tuesday, 23 January 2018

Joint Oireachtas Committee on Agriculture, Food and the Marine

Roles, Responsibilities and Key Programmes of Bord Bia: Discussion

3:30 pm

Ms Tara McCarthy:

On live exports, next Wednesday the Minister is due to lead a trade mission to Turkey which is being organised by us and supported by the industry. There will be a number of key export and commercial meetings facilitated during the visit. We will also undertake a number of advertising campaigns to support what Ireland is doing. The Dutch market will be targeted particularly. It is an area on which we have focused, but the focus will increase significantly.

The Deputy mentioned GM. As per the previous response, we are researching the issue, particularly because of some of the market activities in Germany and because of the claims Ireland wants to make. We are liaising significantly with the industry because it is a complex matter when it comes to the food industry and costs are associated with it. We want to ensure before any recommendation is made on what the market requirements may be it will be profitable for the industry also. Current operations undertaken by retailers in Germany would not generate a premium, although they would add costs for anybody in Ireland looking to do so. Our concern is to ensure what is going on there is an absolute market fact and to understand the dynamic behind it both from a consumer and a trade perspective because sometimes the two diverge.

With regard to the health warning carried on drink products, we will respect whatever legislators come up with and work with the law within the land in which we are operating.

On the fifth quarter, there has been an increase, particularly in markets in the east. As we have developed these markets and the Deputy may have seen in our performance and prospects, we are looking to call out the identification of from where the market values are coming and explain it to exporters and producers with as much transparency as our figures will allow.

I refer to Deputy Penrose's questions. Other markets, new opportunities and new resources are a key priority for us. We undertook with funding from the Department a complete project on market prioritisation mid-year and we did this not just from the perspective of looking out for Ireland and its food industry. We divided the industry into key sectors to identify where the opportunities are for beef, pork, lamb, all other meats, and dairy products such as cheese and powders. We subdivided those by our seafood exports, prepared consumer foods and commissioned separate studies into each. We looked at the top 30 exports to 180 markets by sector. We divided that to look at the top 15 markets and now, in collaboration with industry, we are looking at the top five markets. We are trying to create a targeted approach to market access conversations as well as to our own priorities. We will put in new resources with the additional headcount for which we have been approved to help us to exploit the opportunities that are identified.

Clearly, Brexit is a huge concern. We have met to discuss the issue every single week since the referendum. We are looking to manage every element of the risks Ireland faces. The risks we face are multifaceted, ranging from organising our supply chain to understanding the route to market and the dynamic that will change in the UK market also. We have maintained close relationships with our key retail customers, from whom the feedback tells us that their brands are very much built on the trust that they have earned with consumers and that, therefore, their supply chain must be trusted by consumers also. That gives us some solace regarding Ireland's position both from the perspective of the British consumer and the trade. However, we would appreciate as extended a transition period as possible throughout the negotiations. I have covered most of the questions askeed.