Oireachtas Joint and Select Committees
Wednesday, 12 July 2023
Joint Oireachtas Committee on Agriculture, Food and the Marine
Development of the Sheep Sector: Discussion (Resumed)
Mr. Philip Carroll:
I have just talked about the prices we are paying, and I think I have given a fairly detailed account of where we are in the marketplace and where we have been over the last number of years. We hit record prices in the marketplace at close to €8 at some stage last year. We have been consistently at the top level of pricing against our competitors, who, in most cases, have significant internal markets that they serve. As processors, they are using domestic supplies in their own markets and they have the advantage of that, just as I mentioned earlier the advantage the UK supplier has in the retail market there.
The numbers are quite significant. We can compete on price, we are competing on price and we have continually competed on price with the main suppliers, apart from France. We are behind France because of the significant market it has. As Mr. O’Toole said earlier, we export about 40% of our product or, rather, 40% of the 70% that goes to the Continent, which is 30% or thereabouts of product that goes into that market. We are competing with a heavyweight domestic supply base in that market. If we compare that with the Spanish, who are the biggest producers across Europe, the Spanish have a situation where they are currently on par with us in terms of price. When we look beyond that, Britain and Northern Ireland are on par. Britain is exporting a significant amount of its product into the French market but we must bear in mind that it has a huge domestic market itself, where it trades into the retail sector constantly.
When we consider the risk that Mr. Burke talked about, we note that the big risk we face is from the imports coming from New Zealand under quota, and under tariff for the quota for that matter, and more specifically from Australia, where the volumes could be significant. We are paying prices that are probably 40% higher than the price of that surplus produce. Putting all this into the context of where we are regarding an EU-wide balance, we have a self-sufficiency level of 85% to 90%, meaning Europe is a net importer. That is a reality we face. That is why other countries that have surplus product and a trade agreement, such as those I have talked about, have significant opportunities to trade into our market and have a displacement effect. Therefore, I dispute the point in question. It is a matter for people to do whatever they want regarding it, but what I am really saying to the Deputy is that I do not believe the facts support the claim.