Dáil debates

Wednesday, 8 June 2016

Ceisteanna - Questions - Priority Questions

Live Exports

3:45 pm

Photo of John BrassilJohn Brassil (Kerry, Fianna Fail)
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52. To ask the Minister for Agriculture, Food and the Marine the steps he is taking to open new export markets given the sharp drop in live exports in 2016; and if he will make a statement on the matter. [14477/16]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I view live exports as serving a vital purpose as a means of satisfying market demand for live animals and providing alternative market outlets for Irish cattle farmers. I attach major importance to the live cattle export trade, and my Department, along with Bord Bia, has been proactive in encouraging and facilitating such exports.

Last year saw high levels of exports of cattle to both Britain and Northern Ireland, largely driven by favourable currency rates, which made cattle from this country very competitive in those markets. However, as a result of a closer euro versus sterling exchange rate, exports to the UK this year are lower by approximately 50%. Exports to Italy, however, are up by almost 20% and exports to Spain have grown by 11%.

The markets currently open to live cattle from Ireland include Lebanon, Libya, Morocco, Tunisia, Egypt, Serbia and Algeria, in addition to other member states of the European Union. Animal health restrictions and geopolitical instability have impeded previously large-scale exports to Belgium and north Africa respectively.

In this regard my Department has agreed health certificates for the export of live cattle to Egypt, Serbia and Algeria in 2016 and is currently investigating the possibility of bilateral health certificates for the export of cattle to Kazakhstan, Montenegro, and Turkey as well as breeding cattle to Morocco. My Department recently hosted a veterinary inspection by the Turkish authorities and is awaiting a report from that exercise.

The exploitation of market outlets, once opened, is a commercial matter for the live export sector and is affected by the usual variables, including the cost of animals at marts, domestic demand for live cattle, the relative cost of beef on the domestic and international markets, currency exchange rates, transport costs and other factors.

There is a strong demand for meat globally and my role as Minister is to facilitate market access and enable Irish exporters to take advantage of the opportunities that arise. My Department engages on an ongoing basis with many third countries, in collaboration with Bord Bia, the meat industry, the Department of Foreign Affairs and Trade and the European Commission on various market access issues.

Last year was a very successful year for meat exports and, according to Bord Bia, overall exports of beef, sheepmeat, pigmeat and poultry increased by €140 million to €3.5 billion. Although exports to the European Union account for the majority of meat exports, increasingly, third country markets are an important alternative outlet for the industry.

I will continue to ensure that Irish meat and livestock producers have the option of exporting to as many global markets as possible.

3:55 pm

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I thank the Minister for his response. He outlined the importance of the live sector trade to the agriculture industry and ensuring there are alternatives available for producers. It is concerning to many of those to see that the numbers of live exports declined sharply in 2016. The reports indicate that live trade numbers are down by over 20% in 2016, and that decline has accelerated in quarter 2, with a decrease of more than 30%. In a recent reply to a parliamentary question I tabled, the Department indicated that exports to the United Kingdom this year are lower by approximately 50%, although I know sterling has an impact in that regard.

Many of those involved in the export of animals to Turkey have purchased thousands of live stores in the expectation that the Turkish market would be open. However, they are now particularly worried that additional delays in market access will result in the weanlings missing the specifications required for this overseas market. The Minister indicated that is something that is on his table. Will he give an outline as to how quickly he expects that market will be reopened to ensure there is not any unnecessary delays regarding the export trade to Turkey?

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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On the latter, the truth is that the ball is in the Turkish court at this stage. The Turkish veterinary delegation were here inspecting a number of our plants, processes and so on. A substantial number of plants have expressed an interest in this trade. We must wait until such time as the members of the Turkish delegation come back to us with their proposals and we then finalise the administrative arrangements. We must await the response of the delegation who visited here. There is no delay on the Irish side, and I assure the Deputy that once we get feedback from the Turkish delegation, we will move as quickly as is humanly possible to deal with the matter. I acknowledge that live exports are down in some markets this year but that is a factor I reference in my reply in the context of there being many variables. What the State can do is open markets, and the State has opened a substantial number of new markets, but it is up to the industry to respond in terms of availing of those opportunities contingent on the prices that are available for cattle in the factories here, currency fluctuations and a range of variables that impact on whether it is profitable for those exporters to avail of those markets.

With regard to the point the Deputy made about people purchasing cattle at this stage for Turkish specifications that we have not yet had sight of, that would appear to be premature, but we await feedback from the Turkish and will not be found wanting in terms of the speed of our response.

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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Can the Minister indicate a timeline as to when he expects the Turkish authorities to revert to him? I am sure his Department officials are in ongoing contact with them. Have they indicated anything to them in that regard?

Also, with regard to the opening up of live exports to Egypt, Algeria, Kazakhstan and Montenegro, can the Minister give a timeframe for arrangements to be established for those markets?

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The Egyptian market is already open. I will revert to the Deputy with the details for the other areas. I cannot say definitively when the Turkish authorities will come back to us. It is approximately two weeks since they left here and I understand from the officials in my Department that they were quite impressed by what they saw in terms of the specification of animals that would suit their market demands, but we await their response and we will not be found wanting on our side in terms of opening up that market for live exports. There is significant opportunity there because of an outbreak of bluetongue in France, where they traditionally source cattle.

We are hoping to be able to capitalise on that opportunity but it is contingent on the Turkish veterinary authorities responding favourably to what they saw here and doing so in a timely manner that will help the industry. Once we complete all the necessary paperwork, the industry must step in and determine whether this is a viable market in which to operate.