Bernard Durkan (Kildare North, Fine Gael)
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Question 470: To ask the Minister for Agriculture and Food her plans to improve the prospects for the beef production sector, with particular reference to the ability of the product to compete on international markets; and if she will make a statement on the matter. [4116/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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My plans for the development of the beef sector can be summarised as follows: Advanced processing methods and product development; Sophisticated and targeted marketing; Efficient farm production with quality assurance; and better scientifically based animal breeding.

I recently launched a Capital Investment Aid Scheme for the beef and sheepmeat sectors, directed towards preparing the industry to improve efficiency and competitiveness in both primary processing sectors. The support package, amounting to €50 million, should trigger overall investment of some €120 million. This investment package will, I am confident, contribute to ensuring the strategic and coherent development of these sectors and ultimately position our producers to avail of export opportunities into the future. The positive response of the beef and sheepmeat sectors to the challenges presented in an ever-changing market in recent years has been a major contributor to the enhanced status and reputation of Irish produce abroad. In addition to supporting efficiency and competitiveness for primary processors, this scheme will also underpin agricultural incomes.

Ireland produces over 500,000 tonnes of beef annually and in excess of 90% of that is exported. More than half of those exports go to the UK with about 40% going to the high value Continental EU markets. This excellent result, which is in line with stated policy for the sector, 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 continue a beef supply deficit of the order of 350,000 tonnes in 2007 with this shortfall offering an opportunity for Irish beef producers to further consolidate their position in this market.

One consequence of the shift towards the internal EU market over recent years has been a decline in amounts available for export to international markets. However, third country destinations will continue to be important alternative outlets for Irish beef and I will continue my efforts to ensure that as many as possible of these Third Countries are open to our exports.

There have been welcome developments in this area in, for instance, the re-opening of the UAE market in recent months, though this is currently restricted to animals under 12 months. We are making efforts to expand this category to at least under 30 months. The Deputy will be aware that just last month I personally participated in the important trade mission to the Gulf region which was led by An Taoiseach and the opportunity was taken to raise the issue of the beef trade with the relevant Ministers in both Saudi Arabia and the UAE during my visit. The discussions were very positive indeed. Approaches to other potential markets have also been made especially Japan, China and South Africa. My Department, the Department of Foreign Affairs and Bord Bia will keep up all necessary contacts at official, diplomatic and political level to ensure the maximum progress possible.

To support the beef sector in responding to the very real challenges it faces on an on-going basis in a very competitive environment I announced, late last year, an Animal Welfare, Recording and Breeding Scheme for Suckler Herds for inclusion in the draft Rural Development Programme 2007-2013. The scheme will encourage suckler farmers to record data for animal welfare and breed improvement purposes and to improve practices in important areas such as weaning, so as to achieve standards in animal welfare and husbandry which will assist not only quality and productivity but also contribute to underpinning competitiveness. A budget of €250 million has been provided with annual payments of €80 per cow, over five years, envisaged for suckler cow farmers who undertake to comply with the animal welfare measures provided for in the scheme. The Programme was submitted to the European Commission last December for approval.

In 2007, we are continuing the funding I initiated last year for the significant expansion of our beef quality assurance scheme to ensure that the maximum amount of our production is certified to the highest international standard EN45011. Funding is also continuing with major advances expected in the beef breed improvement programmes being strategically progressed by ICBF through the use of sophisticated science and technology in this field. I believe that all of these measures, combined with our high level of food safety standards, will best position the Irish beef sector to maintain and improve its competitiveness on EU and international markets.