Bernard Durkan (Kildare North, Fine Gael)
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Question 968: To ask the Minister for Agriculture, Fisheries and Food his plans for the future development and expansion of the beef industry; the degree to which it is expected exports are likely to compete on European or world markets; the extent of new markets established or existing markets lost in the past 12 months; the degree to which it is expected to address issues arising; and if he will make a statement on the matter. [11297/09]

Brendan Smith (Cavan-Monaghan, 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.

Ireland produces over 0.5 million tonnes of beef annually, over 90% of which is exported. More than 50% of these exports go to the UK with a further 45% going to high-value Continental EU markets. This outcome has been achieved by the delivery of a high quality, competitively priced product together with effective marketing and promotion by both Bord Bia and the industry. The value of Irish beef exports in 2008 was almost €1.69 billion, an increase of over 7% on the previous year.

The immediate prospects for Irish beef exports remain positive. A continuing supply deficit in the EU market is predicted, as production will only account for 90% to 95% of consumption. This shortfall offers Irish beef producers an opportunity to further consolidate their position in this market. Potential importers such as Brazil and Argentina are limited in what they can do because of either health or export restrictions. However, the impact of exchange rate developments will be important, particularly in relation to the UK and, given the economic recession, a continuing switch to lower value cuts in key markets.

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. Nevertheless, third country markets continue to provide an important alternative outlet for Irish beef and I will continue my efforts to ensure that as many of these markets as possible are open to our exports. The re-opening of markets in Saudi Arabia and South Africa in 2007 and, more recently, in the Philippines and Israel demonstrates that our BSE controls are working effectively. Work on opening other markets is continuing and a Market Access Group supports our efforts in this regard.

Notwithstanding these favourable factors, we cannot afford to be complacent. The development of non-price strategies is fundamental to meeting evolving market challenges. Consequently, and in line with the Agri-Vision 2015 Action Plan, a number of policy initiatives have been developed and enhanced.

Amongst these are the Animal Welfare Scheme for Suckler Herds and the Beef Quality Assurance Scheme. The Animal Welfare Scheme collects genetic data from suckler farms around Ireland for analysis by ICBF. This will expedite the genetic improvement of, and add significant value to, the national beef herd by allowing farmers to select the most profitable breeding animals for their farms.

The Beef Quality Assurance Scheme, which is administered by Bord Bia, plays a vital role in reassuring consumers that they are purchasing a safe, quality product, fully traceable across the production system from 'farm to fork'.

Funding is also continuing for the beef breed improvement programmes being progressed by ICBF with major advances expected through the use of sophisticated science and technology in this field.

With a view to developing markets, Bord Bia is implementing a marketing strategy for Irish beef for the period 2008 to 2013 based on the overriding principles of differentiating and re-positioning Irish beef. This strategy is focused on the key characteristics of Irish beef — traditional grass based production, full traceability and quality assurance — and the targeting of high-value niche markets.

Finally, I should mention the continuing work of the Beef Forum. This was established to identify the opportunities and challenges facing the beef sector, thus allowing a framework for future development to be set out.

I believe that all these measures, combined with our high level of food safety standards, will best position the Irish beef sector to maintain and improve its competitiveness in EU and international markets.