Pat Breen (Clare, Fine Gael)
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Question 110: To ask the Minister for Agriculture and Food her plans to develop the marketing potential of Bord Bia; and if she will make a statement on the matter. [33798/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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Exchequer funding of more than €20 million is provided annually to Bord Bia for the purposes of carrying out its statutory function of promoting and marketing the Irish food, horticulture and drink industries. This grant-in-aid is augmented by a statutory levy and voluntary contributions from the industry, in keeping with the requirements of the EU state aid rules. The annual operating budget of Bord Bia is, therefore, in excess of €29 million and the board makes optimum use of these funds to deliver an effective and strategic service to its clients. That food and drink exports exceeded €7 billion in 2004 speaks highly for the impact the board is making.

Effective marketing and promotion activities are essential as competition is becoming even more intense with greater trade liberalisation, competition from low cost countries and concentration at retail level. Allied to this, consumer requirements are changing with more emphasis being placed on health, convenience and well-being, all of which must be underpinned by value. Bord Bia is responding to these challenges with the development of a more strategic approach to identifying new and emerging markets and sectors.

An independent review of the activities, operations and structures of Bord Bia has been completed. Resulting from the review and extensive consultation, the board has drafted a strategic plan to guide its development over the next five years in the light of changing dynamics in the marketplace. The plan does not envisage a radical departure from Bord Bia's current role and remit but envisages a repositioning to enhance the organisation's capacity to deliver strategic market development, promotion and information services. Specifically, it commits Bord Bia to the development and delivery of a range of strategically focused market development programmes and services to build on and support current programmes and services. The strategic plan, which does have resourcing implications, is being examined by my Department.

This year an additional €800,000 was provided by way of Supplementary Estimate towards the Bord Bia, Irish Beef in Europe, campaign and new activities in markets in the Far East. The "Irish Beef in Europe" campaign is the second phase of the board's strategy to build sales of Irish beef in European supermarkets. The campaign has been running for two months and involves on-pack promotions in 8,000 European stores frequented by some 40 million shoppers per week. It is a concentrated and sophisticated marketing initiative and has by all accounts been very successful.

A great deal has already been achieved in implementing Bord Bia's strategy in recent years to increase market penetration in the high value EU marketplace. In 2001, Ireland exported 72,000 tonnes to continental Europe and only two retailers stocked Irish beef. Last year, exports had more than doubled to 174,000 tonnes and more than 30 retail groups are currently stocking Irish beef. This represents significant progress by Bord Bia and the industry in a short period and points to the type of progress which can be made in the new, more market oriented CAP environment.