Jackie Cahill (Tipperary, Fianna Fail) | Oireachtas source

In less than 100 days, the UK will be outside the EU's Single Market and customs union. From 1 January next, how we trade with the UK will be dramatically different. Even if a free trade agreement is concluded between the EU and UK, there will be significant and enduring change. Being prepared for customs formalities and a new trading relationship is critical, especially in the area of agriculture. The value of Irish agrifood products is strong and they are central to our export industry. In 2019, the sector represented approximately 10% of the value of our overall exports, at €13 billion. One third of those food exports goes to the UK. To put that in context, Irish agrifood exports to the UK in 2019 amounted to €4.4 billion. For all of mainland Europe combined, we exported another €4.5 billion. For the rest of the world, the value was just over €4 billion.

The UK market for agrifood exports is enormous. Barriers to trade between the island of Ireland and Great Britain will be detrimental to Irish agriculture. I fear to think what a hard Brexit would do to the industry based on those numbers.

The UK has opened trade talks with the US, and with this comes the increased threat that the US will seek lower tariffs and increased access to the UK market, including the accommodation of US production standards in areas of food safety, animal health and the environment, in other words, a Mercosur-type deal magnified many times over. The last thing Irish farmers want is a race to the bottom. A no-deal Brexit combined with these talks is a further threat in this area. Irish farmers must not be expected to reduce standards in order to gain access to a lower quality UK market. We must maintain the standards that we, as a top-quality food producing nation, are known for and proud of. Quality assurance and protected geographical indication, PGI, status are promoted by Bord Bia to highlight our top-class standards.

Exports of beef amount to €2.3 billion, of which half, or 211,000 tonnes, go to the UK. Beef farmers have been hard hit by Brexit, and we now have Covid on top of it. Since the beef exceptional aid measure, BEAM, scheme was introduced, it has been calculated that Brexit-related losses between May and December 2019 amounted to €160 million. The impact of Brexit and Covid losses between January and July of this year cost beef farmers a further €163 million. When one takes the Government's pandemic payment of €50 million for beef finishers into account, the total net loss incurred by beef farmers is €273 million.

Last week, I met members of the north and south Tipperary Irish Farmers Association. I welcome the €5 billion Brexit adjustment reserve fund. However, this will have to be greatly scaled up to take into account the growing threat of a no-deal outcome. Other countries, such as Denmark, the Netherlands and Poland, also have considerable dependency on the UK market and they will be looking for a significant share of that fund. We need to ensure the closest possible trading relationship that maintains the value of the UK market for Irish farmers and, in turn, ensures the stability of the EU food market. Tariff and quota free access to the UK market is essential to ensuring this, as is a level playing field where the UK maintains current standards so that we avoid a race to the bottom.

Some 34% of Ireland's dairy exports go to the UK, representing 53% of cheese exports, 29% of butter and 12% of skim milk powder. Exports of cheddar cheese amounted to 78,000 tonnes, representing 82% of all cheddar imported by the UK. Ireland is the only significant exporter of cheddar to Britain and the UK market is the only market of significance for Irish cheddar. Without continued access to the cheddar market in the UK, the industry would no longer be viable here.

For milk and cream, the UK is a significant net exporter. Ireland imported over 800 million l of milk from Northern Ireland for processing. Of this amount, approximately 120 million l were sold as fresh milk, accounting for 25% of Ireland's fresh milk market.

Retention of tariff-free access to the UK market is critically important, particularly for Irish cheddar exports. Overall, the loss of access to the UK market could have a serious destabilising impact on the value of the Irish dairy sector. In addition, the uncertainty surrounding the future trading relationship between the UK and EU presents a particular threat to the current highly integrated all-Ireland milk processing structures.

The UK is a key market. There are other potential markets that we must gain access to, such as China, which will allow for the continued, sustainable future production of high-quality produce. The development of the independent-owned meat plant in Banagher could help make this a reality. If we let independently owned factories into the market and grow our agricultural business links with the Chinese market, we will benefit Irish beef farmers on a number of fronts while offsetting some of the negative impacts of Brexit. A new player with access to the Chinese market must be fully supported by all State agencies.

This morning, I organised a Zoom meeting with the Minister for Public Expenditure and Reform, Deputy Michael McGrath, the Minister of State, Deputy Troy, and representatives of Bulmers in Clonmel. Bulmers, with its plant in Clonmel town, is a large employer in my constituency. There are also apple farms and transportation services associated with this business. The company adds enormous value to the local community annually, employs large numbers of people and pays €1.6 million in rates to the county council. Brexit is a massive threat to this business. Approximately 50% of the Clonmel plant's output is exported to the UK. Beer is facing a 0% tariff in the event of a no-deal Brexit, whereas cider faces the equivalent of 10p per pint. This is unequal competition.

A no-deal Brexit would be detrimental to the work of the Clonmel plant and could well result in its relocation to the UK. Bulmers parent company C&C already has a significant plant in the UK and a no-deal Brexit with high tariffs could see this business move out of Tipperary and Ireland to the UK. We cannot afford to let this happen to industries such as Bulmers and others which would be similarly affected.

We must protect Irish agrifood standards, prevent a race to the bottom, ensure tariff and quota-free trading with the UK and protect our place in the market. We must look to other high-quality, well-paying markets such as China to offset the negative impacts of Brexit. Businesses such as Bulmers are too large to lose. These businesses need assistance.

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