Willie Penrose (Longford-Westmeath, Labour)
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8. To ask the Minister for Agriculture, Food and the Marine his views as to whether enough new markets can be attained which pay a viable price to Irish farmers to replace lost customers in Europe in view of a European Commission impact analysis of future trade deals suggesting a potential increase in beef exports to Europe of up to 356,000 tonnes; and if he will make a statement on the matter. [37562/16]

Willie Penrose (Longford-Westmeath, Labour)
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There is a host of market opportunities for the beef industry. It is clear that we are in favour of free trade because we export more than 90% of our beef. Otherwise we would be in an awful scenario. However, we must be cognisant of our defensive agreements in that regard and in the context of other competing agreements, especially European free trade agreements, and of Brexit. It looks as if the Transatlantic Trade and Investment Partnership, TTIP, is dead anyhow with the advent of President-elect Trump. The Comprehensive Economic and Trade Agreement, CETA, with Canada and other world trade options and agreements also must be considered. Mercosur should probably be considered as well. These are all challenges, particularly for the beef sector. I am anxious that these be addressed by the Department.

Michael Creed (Cork North West, Fine Gael)
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As an exporting country, accessing new markets is crucial to the long-term sustainability of our agrifood sector, especially in the beef sector. For beef exports, 2015 was a very successful year. According to the CSO, overall exports of beef totalled some €2.2 billion that year. Beef exports to the end of September 2016 are running at €1.65 billion.

Third-country markets are an increasingly important alternative outlet for the beef industry. My Department works very closely with the Department of Foreign Affairs and Trade, Bord Bia, the industry and the European Commission on a wide range of market access issues to secure additional markets and maintain and enhance the existing markets. I am acutely aware of the need to develop new and alternative markets, given the changing global demographics and emerging economies in Asia and elsewhere. This is a crucial component of the Food Wise 2025 strategy and has been given an added impetus by the outcome of the UK referendum on Brexit.

In this context, and as I alluded to earlier, the Minister of State, Deputy Doyle, and I led successful trade missions to China, Vietnam, South Korea and Singapore. These missions resulted in positive progress on the next steps in gaining beef market access to China, South Korea and Vietnam, including, inter alia, a commitment by the Chinese officials in the General Administration of Quality Supervision, Inspection and Quarantine, AQSIQ, to expedite consideration of a technical inspection report from their visit to Ireland earlier this year as well as the submission of detailed beef questionnaires to the relevant authorities in South Korea and Vietnam.  Earlier this month, I led a trade mission to Morocco, and my officials also travelled to Algeria, with a focus on live cattle exports. Live cattle exports to Turkey also commenced in September following our recent approval to export live cattle there.

Planning for trade missions during 2017 has now commenced and beef market access will be a key component of any such missions. Furthermore, my Department is in the process of reviewing its approach to market access and the resources allocated therein in accordance with new and emerging challenges and priorities such as Brexit and the potential for increased beef imports to the European Union.

As a small open economy, Ireland supports trade liberalisation and recognises the benefits of trade agreements with third countries. However, such agreements must be balanced and must serve our offensive and defensive interests. I welcome the Commission's cumulative assessment of the economic impact of future trade agreements on the EU agricultural sector, which was recently presented to all member states. It reinforces Ireland's position regarding the beef industry and is a salutary reminder of the need for great caution in our approach to the issue of beef tariff rate quotas. This is an issue we and other member states have raised consistently and the study findings very clearly confirm the basis for these concerns. I also believe that the study findings must be taken into account in the approach to current and future negotiations on free trade agreements.

Willie Penrose (Longford-Westmeath, Labour)
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I thank the Minister for his response. We all must salute the excellent work of Bord Bia in this regard. It has employed about 20 additional personnel, some even after the recent Brexit scenario. Will the Minister provide additional resources to Bord Bia to ensure that it can be helped to penetrate the high quality markets that will now be extremely important and to accentuate Origin Green and the quality and sustainability of beef? In that context, is the Minister concerned about the possible impact of the Mercosur agreement, particularly regarding Brazilian beef and so on and the impact that it would have on the British market in the context of lower prices? In 2006, over 100,000 tonnes of beef imports to the UK came from South America. The equivalent figure in 2015 was just 30,000 tonnes. Brazilian beef made up 9% of beef imports to the UK in 2015; in 2006, the equivalent figure was 20%. This shows the potential knock-on impact this agreement would have on beef farmers in Ireland.

Michael Creed (Cork North West, Fine Gael)
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I am extremely concerned about the fact that a post-Brexit scenario, in which the UK can unilaterally conduct its own trade negotiations, could lead to the UK doing a deal with the Mercosur countries or other countries in respect of imports of a range of commodities, including beef, which could have the impact of undermining our position on UK supermarket shelves. One of the messages on which we wanted to reassure our trading partners in the UK in particular was our commitment to the highest standards of safe, sustainable, traceable food. That commitment is undiminished by the fact that we may go in separate directions after the Brexit negotiations. This brings into sharp focus the points the Deputy raised about Mercosur.

Regarding additional resources for Bord Bia, in the budget this year there is provision for a significantly increased budget for Bord Bia. I am acutely conscious of the challenges it faces, in particular the immediate challenges in the context of the sterling differential, which has put Irish exporters in a very difficult situation. Nowhere has this become more manifest than in the mushroom and wider horticulture sectors. This informed my deliberations in the context of the budget as to what resources each organisation should get.

I take this opportunity to commend the outgoing CEO of Bord Bia, Aidan Cotter, who has led the organisation in sterling fashion since his appointment, and to wish the incoming CEO, Tara McCarthy, all the best in her appointment in what is a very challenging environment for the agrifood sector.

Willie Penrose (Longford-Westmeath, Labour)
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I join the Minister in wishing Aidan Cotter well. He has served for over three decades. He was an excellent CEO and very knowledgeable. We should consider not only Mercosur, but also the Commonwealth agreements and Canadian agreements that will come forward. There is a whole host of agreements. Is it not the case that we need to put in place people who will be in a position to deal with all these agreements?

Regarding live exports, is the Minister concerned about recent developments in the calf trade and so on in his home county? I noticed there was a particular reluctance or disengagement regarding trade in Cork. What impact would that have on the provision of alternative opportunities or competition? We know the way factories behave. If they get a small glut at all, there is only one place they point to, namely, farmers' pockets, to rob and plunder them while the factories continue on their merry-go-round in the absence of competition.

Pat Gallagher (Donegal, Fianna Fail)
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I thank the Deputy for observing the minute.

Michael Creed (Cork North West, Fine Gael)
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Yes, I am concerned about the matters the Deputy raises.

With the expansion of the dairy herd, one of the critical elements in putting a floor and competitive edge in the market is the live export section. In particular, it is about getting Friesian bull calves out of the country early. The withdrawal of Cork Co-operative Marts from that process is a worry. I confess I have spoken directly with its representatives and their view is that this is a market opportunity that will be taken up by others. I hope that is the case and others in that space should be looking at where the trade opportunity was and how they might fill the vacuum created by that departure. In particular, I welcome the recent announcement that there will be live exports to Libya starting shortly, which is important.