Dáil debates

Wednesday, 3 April 2019

Agrifood Market Priorities post Brexit: Statements

 

8:15 pm

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael) | Oireachtas source

I thank all Members, those who are still here and those who spoke earlier, for their contributions on agrifood market priorities post Brexit. Somewhat unusually, we are all in agreement that Brexit poses serious challenges to the agri-sector, that it is, as they say, somebody else's fault but it is mainly our problem and that we must address it as we see most appropriate.

Ireland currently exports to 180 markets globally, and with global population and income growth expected to continue to drive demand for food, the challenge for the Irish food and drink exporters is to identify markets that offer the best potential for growth over the medium term.

Last year was another strong one for agrifood trade, with overall value reaching almost €14 billion. In terms of the key sectors, beef exports came in at €2.4 billion, dairy produce at €4.6 billion and beverages at €1.4 billion. Pigmeat reached almost €800 million and fish exports over €600 million. Live exports reached just under €0.5 billion and poultry €300 million.

Market and trade insight suggest that global demand for Irish food and drink will remain positive in 2019. In line with Bord Bia market prioritisation work, growth in dairy, meats and beverages in particular will continue from emerging economies in Asia and elsewhere. A month ago, my colleague, the Minister, Deputy Creed, launched the Department's first Market Access Annual Report, which was an opportunity to reflect back on past achievements and to look to the future. In terms of the future, at the same time, the Minister also announced plans to promote trade and enhance market access in 2019.

This enhanced focus on market access and trade is a key part of the Department's response to the challenges posed by Brexit and is very much in line with the market development theme under Food Wise 2025. While the work predates the decision of the UK on Brexit, it has taken on an added urgency since then.

At the same time, it is important to note that opening up new third country markets to Irish food producers is a long-term strategy and that these new markets, whether in China, the Gulf states or elsewhere, will take time to develop and grow.

The Department's market access effort includes work at political, diplomatic and technical levels. We also work closely with industry in our pursuit of access to various countries and I acknowledge that valuable co-operation. The Department also has a dedicated trade team, comprised of the divisions within the Department dealing with different aspects of market access, trade and exports, together with Bord Bia and Sustainable Food Systems Ireland. This draws on the cross-divisional expertise and provides a stronger focus on our offensive market access interests in existing and new markets.

I pay tribute to the staff of my Department and our attaché in Beijing who won a Civil Service Excellence and Innovation Award in 2018 for their long-term collaborative project with Bord Bia, the Embassy in Beijing, the Chinese Embassy in Dublin and the meat industry, which ultimately gained market access for beef to China which amounted to some 1,400 tonnes last year.

The UK remains the most important market for Irish agrifood exports accounting for 40% of all exports with a value of €5.6 billion. There are sound economic, social and geographic reasons for this trade with our nearest neighbour, which is one of the most valuable grocery markets in the world.

The Minister, his officials and Bord Bia have devoted considerable time since the Brexit vote to meetings in the UK, specifically with counterparts in government and officials, as well as leaders in industry and retailers, including chief executive officers of many of our agrifood customers. We all hope for a Brexit outcome that will allow trade to continue as normal to the benefit of both countries.

We remain acutely aware of the threats posed by a disorderly Brexit. However, a comprehensive programme of work is in place to lessen potential impacts. Nevertheless, Brexit underlines the Food Wise 2025 theme of developing and diversifying our markets to avail of new growth opportunities. Our focus on market access work includes an enhanced programme of ministerial trade missions, an increase in the number of agricultural attachés serving overseas and detailed market prioritisation studies.

In conclusion, I am pleased the seven-point action plan has resulted in an increase in the number of markets to which we can export. My Department and Bord Bia will continue to work with partners to increase our global footprint further.

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