Written answers

Wednesday, 20 May 2009

Department of Agriculture and Food

Food Exports

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 260: To ask the Minister for Agriculture, Fisheries and Food the countries to which dairy products have been exported in each of the past five years; the number of new markets established; the loss of existing markets; his projections for the future; and if he will make a statement on the matter. [20700/09]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Irish dairy products are exported to other EU Member States and to over 100 countries worldwide. The amount of exports to any particular destination varies in accordance with changes in the supply/demand dynamics in particular regions of the world and in respect of the various dairy products involved. In overall terms, Ireland's dairy exports amounted to €2.2 billion in 2008. The UK represented the largest single share of export sales with 32%. The rest of the EU accounted for 48%, while North America and Africa accounted for 6% and 7% respectively. As international demand changes there will be an increasing emphasis on consumer food markets, particularly in the EU, US and high growth emerging economies, together with strategically expanding marketing and distribution capability worldwide.

Dairy product output from Ireland and the EU is of course constrained by the limits placed on milk output by the EU milk quota regime. The recent CAP Health Agreement raised these limits with a 1% increase in Member States' quotas from 1st April 2009, together with an adjustment to the butterfat calculation which will deliver the equivalent of a further 2% increase in quotas in the 2009/2010 quota year. These increases will provide Irish dairy farmers and processors with further opportunities to respond to global demand and to increase production and capture new market share.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 261: To ask the Minister for Agriculture, Fisheries and Food the number of countries to which Irish beef, pig meat and lamb are currently exported; the extent to which new markets have been established or old markets lost; the countries with which Ireland has to compete on such markets; the degree to which Ireland is holding or losing its competitive edge; and if he will make a statement on the matter. [20701/09]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The value of Irish meat and livestock exports reached almost €2.6 billion in 2008, some two per cent ahead of 2007 levels. Within the overall food and drinks sector, meat is extremely important, with exports accounting for just over 30% of total agri-food exports of over €8 billion. Beef In 2008 Irish beef exports totalling 486,000 tonnes, were sent to 21 markets within the Continent of Europe and 16 countries internationally. Despite the challenging market environment, the position of Irish beef in the key European markets should be maintained this year. While the economic situation across Europe has had an effect on volume and the type of cuts consumed, trade so far in 2009 has been quite stable due to the diversified profile of customers and markets.

Almost 99% of total exports now go to the high value EU markets. This compares to just 50% as recently as 2000. The UK remains our single largest destination with more than half our exports destined for that market.

To date in 2009, trade to the UK has been dominated by currency volatility, and trade has been somewhat slower than usual. Overall prospects for the remainder of 2009 will be largely driven by how consumer purchasing patterns evolve and the impact of this on demand for beef. If the trend of switching to cheaper cuts continues and the steak cut trade remains slow, it will continue to put pressure on overall carcase returns.

Notwithstanding the fact that most of our exports are to EU countries, the international market, also, remains an important outlet. The re-opening of markets in Saudi Arabia and South Africa in 2007 and more recently in the Philippines and Israel show that our controls on BSE are recognized as working. Work on opening other markets is continuing and a Market Access Group supports our efforts in this regard. Sheepmeat Approximately 70% of Irish sheepmeat is exported, 99.9% of which goes to the high-value EU market. Traditionally, France has been the major export market for Irish lamb and in 2008 it accounted for more than 50% of Irish sheepmeat exports. Irish sheepmeat is, however, facing strong competition in France from the UK due to a weakened sterling and from New Zealand, which continues to build up its presence of chilled lamb on the EU market. The French market has also seen a decline in consumption. The impact of any reduction in Irish exports to France has been lessened by increased exports to other markets. Exports to Sweden and Denmark have increased significantly in recent years. Bord Bia will continue to promote intensively Irish lamb at home and abroad. Its actions include a generic promotion campaign with its UK and French counterparts on the important French market.

Last year, Irish sheepmeat was exported to 16 countries on the Continent of Europe and 4 countries internationally. The absence of export refunds, together with a production deficit within the EU means that the market focus is on Europe and there is little penetration outside the EU. Pigmeat Ireland exports pigmeat to some 24 non-EU countries in addition to the other Member States. These include all the most important pigmeat importing countries such as Japan and the USA.

Currently the Peoples' Republic of China and Russia have a temporary ban in place as a result of the dioxin incident of December 2008 and my Department is working towards having these reopened.

With regard to market access, it is my policy and that of the Government to ensure that Irish producers have access to markets worldwide. My Department maintains an extensive scheme of controls on the hygienic production of pigmeat and on the operational procedures that are required to underpin the certification of pigmeat for markets worldwide.

Bord Bia's overseas marketing initiatives include pigmeat. My Department will continue to work with Bord Bia and the Department of Foreign Affairs and the industry to retain existing markets and develop others.

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