Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 154: To ask the Minister for Agriculture and Food her plans for the future of the beef industry with particular reference to its future development and the need to compete with products from other jurisdictions; and if she will make a statement on the matter. [26484/05]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

Under the CAP, decoupling arrangements for direct payments, farmers can for the first time in many decades, now focus more clearly on the market-related element of their incomes, confident that the single payment will provide an assured income stream. This will create a significant incentive towards quality production with producer-processor relationships the key. In such a context there will be a need for even greater emphasis on good breeding policies, payment related to quality and integrated supply and purchasing systems thus satisfying high quality and premium market opportunities. The future well-being of the beef industry will be directly dependent on the returns that farmers can generate from the market. The beef sector can look forward with confidence based on supplying quality products on a competitive basis.

In the past three years, the focus of the Irish beef industry has been to broaden and expand its market reach at EU retail level, shifting its orientation away from international commodity markets and into the higher priced internal EU marketplace. This has coincided with reduced dependence on EU support measures such as intervention and export refunds. EU consumption is predicted to again outstrip production in 2005 with a resulting import gap of an estimated 280,000 tonnes for the year. This will present additional opportunities for Irish beef producers. Beef production is extremely valuable in the Irish economy with a €1.4 billion export value representing almost 25% of total Irish agri-food exports.

The new Bord Bia European autumn promotion of identified Irish beef, in conjunction with EU retailers and their Irish suppliers, is under way. This is being rolled out progressively across eight EU countries over the next two months. Initial feedback is already encouraging in terms of improved demand in response to the promotion. It is hoped that we can strengthen the position of Irish beef in the European marketplace. An increased presence in this sophisticated, high value market is the key to the success of the beef industry in the long term.

Ireland is competing on the EU markets with beef imported from low cost South American economies notably Brazil. The main concern is that Brazil has a capacity to significantly increase its exports, not only to Ireland but also to our chief export outlets in Europe and in other third countries, in direct competition with us. The issue is one which continues to be monitored and is being considered in the context of our preparations for the WTO talks in Hong Kong in December.