Donie Cassidy (Westmeath, Fianna Fail)
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Question 195: To ask the Minister for Agriculture and Food her views on prospects for the beef sector in 2006. [6114/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The Irish beef sector in 2005 was characterised by stability, consistency and high prices. Beef prices in all categories are up 6% on average for 2005, having reached a six year high in 2004. Irish beef production reached 524,000 tonnes in 2005, a drop of 2% on 2004 levels. Of this, 487,000 tonnes, representing 93% of our production, was exported with an export value to the Irish economy of well over €1.3 billion, representing almost 20% of Irish food and drink exports. Some 192,000 tonnes or 40% of our beef exports went to EU markets, with the UK remaining our largest single destination with exports of 260,000 tonnes.

The outlook for Irish beef exports in 2006 is largely positive with the decreasing production trend throughout continental Europe leading to a beef supply deficit of 350,000 tonnes. In contrast, Ireland's beef production is forecast to increase by 5%. This presents an opportunity for Irish beef producers to further consolidate their position in the high value EU market and should maintain a steady demand for Irish beef in 2006 with price growth again being achieved.

Non-EU markets continue to be important alternative outlets for Irish beef and it is our intention to have the maximum number of third country markets open for our beef exports. The reality, however, is that continental EU and UK markets offer a much more attractive and secure outlet for Irish beef. The ending of the over 30 months scheme in the UK on 22 January 2006 further regularises the EU beef market. Certain adjustments may have to be made by Irish exporters if displacement of Irish product occurs due to the additional supplies of cow beef coming onto the UK market in 2006. It is also likely that the EU export ban on UK beef will be lifted in 2006.

Assuming there will be a change in the export rule from April 2006, UK exports are forecast to be in the region of 30,000 tonnes in 2006. With the EU beef supply deficit, this quantity should be easily absorbed into the internal market with no adverse market repercussions.