Ruairi Quinn (Dublin South East, Labour)
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Question 122: To ask the Minister for Agriculture and Food the action she intends to take to further promote alternative markets abroad in view of the fact that Ireland is 300 per cent self-sufficient in dairying and beef; and if she will make a statement on the matter. [24611/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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As regards dairy products, I am very pleased to report that this sector has enjoyed a number of successful years on international and EU markets and exports of dairy products and ingredients accounted for €2 billion of total agri-food exports in 2005. Over 80% of Irish Dairy Production is exported to world markets across a broad range of products including butter, milk powders, cheese, infant formula, food ingredients and functional foods.

I have worked hard to assist in the development of new and existing markets for Irish dairy products through ensuring that all the market aid mechanisms available are deployed in an effective manner so as to enable the dairy sector consolidate and grow its share of international markets. I acknowledge and welcome the investment by Irish dairy processors in R&D which will continue the drive towards greater levels of innovation and diversity in product mix and will help maintain our competitiveness in the face of challenges ahead.

The dairy market outlook for 2006 foresees the international dairy market facing renewed pressure as increased output levels from New Zealand, Australia, the US and Argentina impact on the market. Despite this increased competition, world prices are expected to remain relatively stable and global demand for dairy products is also set to rise. I am satisfied that Ireland is well positioned to take full advantage of such international trading opportunities, however it must be remembered that energy prices and the value of the US dollar/Euro exchange rates continue to be important factors in determining the competitiveness of Irish and EU traders on the global markets.

The future development of the dairy sector is a priority for me and I will provide whatever assistance I can to encourage the sector to improve its position and to develop new markets in the increasingly competitive international markets in which it operates.

I am also committed to broadening access for Irish beef on all export markets. My Department works closely with An Bord Bia and the Department of Foreign Affairs to further this aim.

We produce about 520,000 tonnes of beef annually, over 90% of which is exported. More than half of those exports go to the UK with about 40% landing in the high value Continental EU markets. This excellent result has been achieved largely by effective marketing and promotion by the industry and Bord Bia and the delivery of a high quality, competitively priced product. The outlook for Irish beef exports is also positive with the decreasing production trend throughout Continental Europe. The EU is predicted to have a beef supply deficit of 350,000 tonnes in 2006 with this shortfall offering an opportunity for Irish beef producers to further consolidate their position in this market. While there has been a significant reduction in reliance on third country markets in recent years, these destinations will continue to be important alternative outlets for Irish beef and I will continue our efforts to ensure that as many as possible of these Third Countries are open to our exports.

My Department has responded to developments on the UAE market and the prospects for reopening that market are good. Approaches have also been made in recent months to a number of countries which have potential export opportunities including Saudi Arabia, Singapore, Philippines, Indonesia, Kuwait, Israel, Japan, China and South Africa. I am hopeful that there will be progress in a number of these markets in the future.