Dáil debates

Wednesday, 3 April 2019

Agrifood Market Priorities post Brexit: Statements

 

7:00 pm

Photo of Martin KennyMartin Kenny (Sligo-Leitrim, Sinn Fein) | Oireachtas source

Yes, at five minutes each.

I have been reading through the Minister's comments on the agrifood sector and Brexit. We are at a critical point. Many in our rural economy are waiting on a knife edge to find out what their futures will be. In the Border counties and the west in particular, where farming income levels are probably the lowest, people have been waiting a long time. There are especially serious concerns in the beef sector. I read with interest the Minister's comments in that regard. While more than 50% of Irish beef is exported to Britain, that poses a major problem, given the introduction of the tariffs that were mentioned. The Minister stated that many of our other markets had expanded, for example, in the Middle East, China and elsewhere in the Far East. Some markets had increased to 27% while others in Asia and elsewhere had increased by 40%. What percentage of our overall agrifood exports do those markets represent? The increases could be starting from a low level. We export much of our product into Britain and other countries in Europe. In percentage terms, the increases elsewhere look good on paper. In real terms, though, we are moving low levels of food into those markets.

The EU will have to come on board and support Ireland through this critical time. It is imperative that a scheme be put in place to compensate for the tariffs that Britain will charge. This is the only way to ensure that Irish beef continues to be put on shelves in Britain and holds on to its market share. That is vital for the future.

The question of exporting food across the British landbridge has still not been resolved satisfactorily. Most people recognise that transport mechanisms that take our foodstuffs around Britain to reach Europe will take much longer and be more expensive and difficult.

The issue of live exports has been mentioned. While the percentage of live exports has increased, this has only happened in a certain sector, namely, dairy calves. Live exports of finished cattle should not be, and are not, the answer. We need to find markets for our finished food products.

I have heard increasing talk of something in recent days. Processors in Ireland have meat processing facilities across the water in Britain, and I understand they are considering the possibility of moving their operations to there, bringing live cattle across and killing and processing them there instead of here. That would have a negative impact on the prices farmers get at Irish marts and on the sector as a whole, including employment therein. There are also serious concerns in our beverage industry about how this situation will be resolved in the long term.

Regardless of whether there is a crash or a deal, Britain will leave the EU. No matter the mechanisms or agreements that are put in place afterwards, the following period - it will probably be five to ten years - will be difficult for the agrifood sector. While the dairy industry is somewhat stronger than the beef industry and has more flexibility, the latter is already in crisis. We need to consider how to market our product better in other places. In order to do that, we must recognise that we are probably going to have to contract. We will have to produce less for a certain period and get a higher price for it by marketing it properly, with specific reference to the unique qualities that Irish food has, for example, grass-fed beef, family farms, traceability, etc. All of these models need to be emphasised more and more and we need to find markets for our product. Its scarcity will be a factor, as we will not be producing as much. I have come to the view over a period of time that we are producing too much beef to be sustainable, and that is even before Brexit. When Brexit kicks in, the danger will increase.

The Irish Government must do what it can to prepare for Brexit. Ultimately, however, Brexit is a problem between the EU and Britain, and the EU must recognise that Ireland will be a severe casualty. It will have to step in with the funding necessary to protect our vital industries, in particular the agrifood sector.

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