Joe McHugh (Donegal North East, Fine Gael)
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Question 341: To ask the Minister for Agriculture, Fisheries and Food his views on whether unwillingness in 2009 by banks to extend credit to farmers is damaging the cattle trade here; and if he will make a statement on the matter. [32166/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Beef production is an extremely valuable component of the Irish economy. It had an export value of €1.69 billion in 2008, representing 20% of total Irish food and drink exports. Some 90% of Irish beef production is exported, which makes Ireland the largest net beef exporter in the northern hemisphere and the fourth largest in the world. In common with all agricultural commodities, beef production is a function of market conditions and has remained relatively stable in recent years. During 2009, beef production has fallen in the majority of EU member states, with an overall decline of some 6%, largely as a consequence of challenging economic times. Ireland is no exception to this, with volumes down almost 8%. An important factor in influencing the numbers available for production is live exports. They continue to be an important outlet for our cattle, providing an essential element of competition with the beef trade. In recent years, the vast majority of Ireland's live beef trade has been with other EU member states. In 2009 to date, the live trade to the UK has increased by almost 250%, while shipments to other EU member states have doubled. While Ireland remains one of the foremost suppliers of beef into the European market, it is evident that, as a result of the downturn, import requirements in our main markets have declined somewhat. Sales in retail and food service outlets, both of which remain extremely important to Irish exporters, have fallen and are expected to remain weaker than their long-term trend for the foreseeable future. In common with much of the EU, prices have come under downward pressure this year. This is largely due to the economic downturn and the subsequent decline in demand for beef in particular and meat in general. It must be remembered that prices increased considerably in recent years and prices are still above 2007 levels. The anticipated tightening in supplies in the EU, coupled with lower imports from South America during the rest of 2009, is expected to alleviate some of the pressures being experienced, although the extent of this remains unclear.