Bernard Durkan (Kildare North, Fine Gael)
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Question 243: To ask the Minister for Agriculture and Food the producing countries now presenting the strongest competition for Irish agricultural exports on European or world markets; and if she will make a statement on the matter. [9345/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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Bord Bia estimates that agri-food exports were worth in excess of €8 billion in 2006. This was against a backdrop of increasing competitive pressures and a strengthening euro.

Over 80% of Irish dairy production is exported, with the majority being traded on the EU market. Exports in 2006 exceeded €2 billion with an increase in the volume of primary products send abroad, as well as strong export growth in infant formula and value added products. The outlook for 2007 foresees renewed pressure on international dairy markets as increased output levels from New Zealand, the US and Argentina impact on the market. While output levels from Australia are significantly limited due to the recurrent drought situation, over a longer time frame they are also projected to expand their market share as production increases.

Irish beef exports were boosted by growth in demand on EU markets and were estimated to have grown by 14% to €1,525 million in 2006. The main competition to Irish beef exports on both EU and Third Country markets comes from the low cost South American producers of Brazil, Argentina and more recently Uruguay. While in 2006 access to European markets was somewhat restricted by the import restrictions imposed on Brazil as a consequence of Foot and Mouth Disease outbreaks and the self imposed temporary suspension of Argentinean exports, the European Commissions projects that beef imports into the EU will resume a continuing pattern of growth and reach 750,000 tonnes by 2013.

Irish sheepmeat exports were estimated to be worth €180 million in 2006, down slightly on 2005, reflecting reduced production. Our lamb competes on EU markets, chiefly in France, with product from the UK and New Zealand and to a lesser extent Spain. Imports into the EU have increased in response to reduced EU production in recent years and are expected to stabilise at around 275,000 tonnes in the coming years.

The continued success of the Irish agri-food sector on domestic and international markets will depend on a number of factors including the need to maintain competitiveness, the ability to deliver added-value products and the stability of US dollar/Euro exchange rates. Actions to support the competitiveness of the agri-food sector are set out in the Agri Vision 2015 Action Plan and in the National Development Programme.