Neale Richmond (Dublin Rathdown, Fine Gael)
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12. To ask the Minister for Agriculture, Food and the Marine if he will report on the impact of Brexit on the Irish agri-foods industry; and if he will make a statement on the matter. [37482/22]

Brendan Griffin (Kerry, Fine Gael)
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For over six years now, Brexit has been a massive issue in this country and in Europe. At the same time, I long for the days when Brexit was the biggest crisis we faced. However, it is still a crisis. It has caused significant difficulty, particularly for the agri-food sector. I ask the Minister of State to update the House on matters pertaining to Brexit in that regard.

Martin Heydon (Kildare South, Fine Gael)
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We long for the days when Brexit was the biggest challenge we faced. It was, and continues to be, a big challenge. We have to be aware of the medium-term challenges from the fallout from Brexit, particularly in the agri-food sector. The Deputy will be aware that the EU-UK Trade and Cooperation Agreement, TCA, maintained tariff-free access for all goods traded between the UK and the EU. This was a positive outcome of the negotiations, particularly in respect of trade in agricultural goods, as the imposition of tariffs on these goods would have added considerable costs for Irish exporters to the UK. However, as I have outlined, the full impacts of Brexit on the Irish agri-food sector are still evolving and have not been fully realised yet. For example, the UK Government's decision in April 2022 to defer the introduction of full import controls on EU products entering the UK to the end of 2023 - the fourth time these requirements have been postponed - continues to create ongoing uncertainty for Irish food exporters. Uncertainty also continues in respect of the implementation of the Northern Ireland protocol, due to the UK Government's legislative proposals which could result in it disapplying large parts of the protocol. The conclusion reached on this issue could therefore also have significant impacts on Irish and British agri-food supply chains.

The Government will continue to do everything that it can to ensure that the UK Government meets its international obligations and, in conjunction with the EU, delivers solutions which address the needs of all the people and businesses on the island of Ireland. It is worth noting that despite this ongoing uncertainty, Irish exports of agri-food products to the UK have remained resilient since the end of the transition period. The value of our exports to the UK in 2021 was up by €438 million, or 8.2%, compared to 2020; and by €291 million, or 5.3%, when compared to 2019 figures. This underlines the value of the extensive collaboration that has taken place between the Government and the agri-food sector in preparing for the new trading environment post-Brexit. However, we cannot be complacent. We will continue to monitor developments closely and to put in place the necessary support for the sector to meet any new challenges that arise. I continue to work on the area of new market development outside of our dependency on the UK market, which I will discuss further in my supplementary response.

Brendan Griffin (Kerry, Fine Gael)
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I thank the Minister of State for his response.

I acknowledge the very significant effort that has been made by the Irish Government and by officials both in the Minister of State's Department and across the whole of Government since 2016 in formulating a response to the Brexit crisis. I do not think any of us in 2016 envisaged we would still be talking about this in the Dáil Chamber on the last day of the summer term in 2022. Unfortunately, we are where we are. While we can start talking about the blame game and the appalling behaviour of the British Government and of parties such as the DUP, with their scorpion and frog approach to Brexit, we have to be pragmatic in keeping up the efforts to support farm families on this island in the challenges Brexit presents and the potentially fatal challenges it might cause to some businesses also.

Martin Heydon (Kildare South, Fine Gael)
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I agree with Deputy Griffin that the UK will remain an important market for Irish food and drink. Since the result of the Brexit referendum, however, we have stepped up the efforts of diversification, and in my role with responsibility for new market development in the Department of Agriculture, Food and the Marine, I have worked very closely with the Minister, Deputy McConalogue, and we have opened and improved access to markets around the world. We have looked also to grow our European markets to reduce the risk attached to an overdependency on the UK market that is now outside the Single Market.

Two of the most valuable markets, the USA and China, are non-EU markets, and in fact ten of the top 20 markets are. They stretch from Japan to Canada, both of which are examples of where we have improved access now. These markets may seem far removed from the Irish farm, but what happens on the shelves of the Canadian supermarkets or in restaurants in Japan actually really matters. We will continue to work to expand these and other markets to ensure we can position Irish produce to the highest value and obtain the best return possible for our farmers.

Brendan Griffin (Kerry, Fine Gael)
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I acknowledge the efforts that are being made in sourcing new markets and we have come a long way since we were a neocolonial economy dependent so much on Britain. Those efforts need to be further intensified. For example, if there is one positive for us to come out of the current situation it the exports to the US, which is a market of great importance for us. It is something on which I would encourage the Minister of State to maintain his efforts.

The sooner we can have closure and certainty on the protocol and Brexit, the better for everyone in business, in particular, for our farmers, who are so exposed. I encourage both Ministers to continue the good work with the Department of Foreign Affairs, as that co-operation is very important in resolving this matter once and for all. We would rather not have to deal with this at all but we have to deal with reality, and this is something that needs to be concluded as soon as we can.

Martin Heydon (Kildare South, Fine Gael)
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Deputy Griffin can take it as a given that we will continue to work across Government to hold the British Government to the international obligations it has signed up to. I am a firm believer in controlling the things we can control, and in respect of my role in the Department, that is clearly to look at tangible efforts to ensure we have a broader diversification of the markets we export into.

There was no better example of that recently than when the Tánaiste, Deputy Varadkar, the Minister, Deputy McConalogue, and I attending the sod-turning of the €200 million investment in the new Glanbia cheese plant in Belview. This is an investment that will bring 400 construction jobs to the south east along with 80 permanent jobs and will support the incomes of 4,500 farm families who will supply the plant. It is being built as a result of Brexit because that plant will produce continental cheeses for the global market from 2024. This development will diversify Glanbia’s offering away from the more traditional Cheddar offering that is bound for the UK.

Through its partnership with Royal A-ware, Irish farmers will now be producing milk which will go to make Edam, Gouda, and Emmental cheeses destined for the shelves of European markets. Yes, the UK will remain an important market but we must continue to insulate ourselves against those future risks.