Bernard Durkan (Kildare North, Fine Gael)
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Question 319: To ask the Minister for Agriculture, Fisheries and Food the extent in value and volume of beef, lamb, pigmeat and dairy produce exported in each of the past five years to date in 2010; the markets that have grown in this period; the markets that have shown a reduction; and if he will make a statement on the matter. [4192/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Beef exports and outlook

The market performance of meat and dairy products is a function of supply and demand, and has of course been affected by the global economic downturn, exchange rates and other factors.

In relation to beef, despite the current difficult economic climate, Irish beef exports were relatively resilient in holding their position in European markets and over 200,000 tonnes of beef were destined for the higher value standard and premium retail and premium foodservice markets. More than 70 retailers across Europe now stock Irish beef, a position which is unequalled by any other beef exporting nation.

Exports to the UK fell in 2009 by an estimated 6% to 245,000 tonnes with trade valued at €660 million. Progress continues to be made in developing the market position of Irish beef, particularly in the multiple retail and higher value foodservice market segments.

The outlook for 2010 will hinge on an uplift in consumer demand and exchange rate developments. Lower availability of supplies in Continental Europe coupled with lower availability from South American importers should strengthen the demand for Irish cattle. Little change is anticipated in UK prime beef supplies. With regard to Irish supplies, an increase during 2010 is to be expected as a result of the fall in live exports during 2008. However, the strength of the weanling and store cattle trade in 2009 is expected to impact on finished cattle availability as the year progresses.

Lamb exports and outlook

In relation to sheepmeat, France accounts for approximately half of all Irish sheepmeat exports. Over the past 5 years the breakdown of exports shows the impact of a concerted effort by An Bord Bia and the meat industry to reduce dependency on the French market and grow exports in higher value markets across Northern Europe such as Germany, The Netherlands and Sweden. Exports to the UK have also been growing in volume and value. However results for 2009 show how trade with this market struggled due to adverse currency fluctuations and the impact of the economic downturn on consumer demand. The latter also negatively affected trade in all main markets including the domestic market. On a more positive note, exports to the Mediterranean markets for 2009 showed a significant strengthening as a result of the contraction of domestic flocks in Spain, Portugal and Italy.

Tighter EU lamb supplies are anticipated in 2010 with both the UK and Spain predicting reduced production levels. This fall in supplies of lamb from key players across Europe in 2010 should help provide a reasonable market environment for Irish lamb, though this is contingent on the normal market factors, including currency fluctuations and general economic conditions.

Pigmeat exports and outlook

Depressed global consumer demand affected Irish pigment exports during 2009, with lower exports to both EU and non-EU markets. The UK remains the principal for Irish exports with the value of trade estimated at €215 m last year.

The EU Continental trade for 2009 accounted for an estimated 34,000 tonnes, valued at €51 million. Trade to Germany, Italy, France and the Netherlands were at normal levels for most of the year. In terms of International markets, most countries that placed suspensions on Irish pigmeat have been lifted with the exception of China with progress expected to be made towards lifting suspensions in early 2010.

Exports of pigmeat to International markets are estimated to have reached almost 10,000 tonnes in 2009 with trade worth €24 million. The principal markets were the United States and Japan. Trade to Japan was adversely affected by a lower import requirement in response to slow market demand with shipments expected to stand at 1,500 tonnes for the year.

The return into production of herds destocked following the product recall in late 2008 is expected to boost pig supplies by 5,000 head per week by March 2010. On an annual basis this is expected to boost finished pig supplies by around 10%. Import requirements for Japan and South Korea are set to rise this coming year. This combined with a slight decline in European Pig supplies, should create a stronger global demand for Irish pigmeat.

Dairy exports and outlook

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 in 2008, the UK represented the largest single share of dairy 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.

The table below shows the figures for total Irish exports of Dairy Products, Caseins and Ingredients from 2004 to 2008.