Mr. Cormac Healy:

I will take up some of the points raised. Deputy Martin Kenny asked if the system would give an additional return, while Senator Pádraig Mac Lochlainn quoted from an Irish Farmers Association submission that the meat factories were the only ones to benefit. I shall address the two points together. Meat Industry Ireland believes the entire sheep sector will benefit from this measure. The entire sheep sector is dependent on traceability which underpins food safety in the system. If there are shortcomings that lead to an issue, we all know from previous examples that the entire sheep sector, every stakeholder and all actors in the chain, including the farmer, the livestock mart and the meat plant, can be impacted on. This solidifies our approach to traceability in the entire sheep sector and it is of benefit to everybody.

There are other issues, on which we have touched, such as the unfortunate reality that gaining market access is a challenging task. It is a time consuming and lengthy operation to gain international market access, but this measure is one we have to take in taking the next steps to achieve a number of target markets.

Without question, a system in which all sheep are electronically identified has certain management benefits at farm level, no more than at mart and meat plant levels, as opposed to the system in operation in which the entire ewe breeding flock and rams are electronically identified. A number of other flocks of individual producers have taken the electronic identification route and seen certain advantages. Some of these producers may be involved more in breeding programmes or on the pedigree side of the business, but other large commercial sheep farmers have also taken the step. There are benefits across the board.

On the overall returns, market access and ensuring the recovery of a premium price from the market, it is all about ensuring there are no slip-ups in the existing customer base and markets we already serve. As Mr. Carroll said in his opening statement, the meat industry is constantly audited by customers and independent third party auditors who look at every facet of the system. In the past some shortcomings in the traceability arrangements were identified and they will not be overlooked forever. We must retain our customer base and then expand into international markets.

The Department has indicated the numbers in international markets that are open to lamb imports, but they are behind the figures for pigmeat and beef. To some extent, lamb producers might be a little late to the table in the international market arena, but they are very much focused on international markets now because of changes in them, one of which is the increasing demand for lamb in certain markets. Another is the more significant development in the past decade of an increase in the volumes of lamb that previously would have come to Europe from New Zealand and Australia being diverted to China. That has opened up new opportunities which we have to go after. We believe Ireland has an advantage in that regard. As we have said at this committee before, it is all about trying to maximise use of every individual piece of the carcass. In many cases it is about heading into some of the new markets in Asia and so on. There will be an underpinning of returns.

The overall price return in the course of this year to date has been strong. Where the markets and the demand exist, it can be delivered. We need to underpin it and find new markets to follow up on.