Written answers

Tuesday, 25 January 2011

Department of Agriculture, Marine and Food

Food Industry

8:00 pm

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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Question 441: To ask the Minister for Agriculture, Fisheries and Food the prospects for Irish agriculture and food production for 2011 and in future years; and if he will make a statement on the matter. [3357/11]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The agriculture and food sector recovered well in 2010 following a very difficult year in 2009. According to Bord Bia, food and drink exports in 2010 are expected to show an increase of 11% to €7.88bn. Dairy exports rose 17% to €2.29bn and meat and livestock exports rose by 8% to €2.66bn. Overall food and drink exports accounted for 30% of the growth in total merchandise exports.

The Bord Bia survey completed in December 2010 showed a more positive outlook by food and drink manufacturers across all categories with 70% of those responding viewing prospects for their industry as good or very good. Consumers are less pessimistic about 2011. UK food prices are running ahead of inflation and if the exchange rate with sterling continues to favour Irish exporters the strong export performance to this key market should continue. Global commodity prices are also expected to remain strong. Tightened supply in some sectors also suggests that 2011 will provide good opportunities for Irish food exporters. However, input costs are also rising and this could affect the margin received by farmers for their produce.

Looking beyond 2011 the Food Harvest report has set challenging growth targets for the sector over the next decade, including: Increasing the value of primary output by €1.5bn; Achieving €12 billion in exports, which is about a 42% above our 2007-2009 average; Increasing milk production by 50%; Adding 20% and 40% to the value of the beef and seafood sectors respectively.

These targets were adopted by a committee consisting of senior figures in the agri-food sector. They are challenging but achievable provided all industry participants take the necessary actions outlined in the food harvest report.

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