Pearse Doherty (Donegal South West, Sinn Fein)
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Question 34: To ask the Minister for Agriculture, Food and the Marine his plans to alleviate the damage caused by the MERCOSUR deal to the beef industry; and if he will make a statement on the matter. [7073/12]

Simon Coveney (Cork South Central, Fine Gael)
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With regard to the current EU/MERCOSUR bilateral trade negotiations, no market access offers have been made to date and none are likely to be exchanged before the summer.

I am, nonetheless, acutely aware of the vulnerability of the beef industry arising from any MERCOSUR deal. I have repeatedly expressed Ireland's serious reservations at European level about the negotiations with MERCOSUR, particularly concerning the adverse impact a deal would have on the market for Irish beef. In doing so, I have carefully highlighted the importance of the beef sector to Ireland where 90% of our production is exported, almost all of it to other EU countries.

Ireland has been at the forefront in raising these issues at European level. Our position has been clearly and consistently enunciated in the Agriculture Council, in COREPER and at several meetings of the Trade Policy Committee. Moreover, my Department has been very active in pursuing the issue of mitigating measures in relation to the beef sector with the Commission. Ireland has also highlighted the sustainability arguments. We have written to the Commission several times both at Ministerial and official level. A series of papers (six in all) have been presented, following consultation with industry, detailing mitigating measures and comparing the relative efficiency of beef production systems in Ireland and Brazil. These submissions have been followed up by seven meetings at official and Ministerial level. The Commission has indicated that it is receptive to Irish suggestions on mitigation but has not yet indicated how precisely it will incorporate these views in its negotiating stance.

Ireland also applied for and was accepted as a member of the MERCOSUR Potsdam Group which advises the Commission on Sanitary and Phyto-sanitary (SPS) matters and in that capacity attended negotiations on the SPS chapter.

I am of the view that any agreement must not undermine the continued viability of a particular economic sector in individual Member States. Because of the potentially grave and long-term implications for the European agrifood sector, the EU must take special account of its critical interests in this area. Having regard to the economic importance of the sector to the EU as well as its contribution to food security, sustainability and the delivery of the EU 2020 strategy, I will continue to engage with the Commission and to build strategic alliances with like-minded colleagues in order to ensure that Ireland's voice is heard and heeded at the negotiating table. In short, I will take advantage of every opportunity in discussions with our European partners to articulate and advance Ireland's case on this important matter.

Bernard Durkan (Kildare North, Fine Gael)
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Question 35: To ask the Minister for Agriculture, Food and the Marine his plans for the continued and or further expansion of the beef and dairy herds with a view to maximisation of benefit for the food production sector and the economy in general thereby facilitating increased employment in the sector and in the associated services such as processing, transport and value added production; the extent to which he can foresee the competitiveness of the industry on European and world markets; and if he will make a statement on the matter. [7197/12]

Simon Coveney (Cork South Central, Fine Gael)
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The Food Harvest 2020 report, which was developed in collaboration with a broad spectrum of stakeholders, lays down ambitious plans for the development of the agrifood sectors, including the dairy and beef sectors. I am personally chairing a High Level Implementation Group to ensure that all of the stakeholders in these very important sectors are fully committed to achieving the ambitious targets the industry has set for itself.

In relation to the dairy sector in Ireland, the ending of the Milk Quota regime from April 2015, provides a significant opportunity for the sector to capitalise on the competitive advantage conferred by its grass based production model, against the background of strengthening European and world markets for dairy products.

International dairy markets have recovered fully from the 2009 price collapse and analysts consider the short term outlook to be positive. This increased market buoyancy is good for Ireland, as we export over 80% of our dairy production and the value of our exports have increased dramatically over the last three years. The tangible effect of this recovery can be seen in the average milk price paid to Irish farmers which has increased from 24 cents per litre in 2009 to 34 cents a litre in 2011 and in an increase in exports of 17%, bringing the value of dairy exports in 2011to almost €2.7 billion. In order to ensure that Ireland can continue to exploit this expanding European and World demand for dairy products my Department identified the steps necessary to reach the headline dairy target set out in Harvest 2020 of increasing milk production in Ireland by 50% by the end of the current decade. A Dairy Expansion Activation Group established within my Department produced a Road Map setting out 55 actions required to achieve this target. My Department is monitoring progress in the implementation of these actions.From the perspective of my Department and its agencies, key elements include the continuing work of Teagasc in the area of production research, advice and training at farm level, and its continuing work with industry, for example in the area of food research and product development, the provision of €6 million per annum for a Dairy Efficiency Programme to encourage improved efficiency and profitability at farm level, the provision of almost €9 million in 2012 to fund investment in dairy equipment at farm level, and of course the continuing work to develop new market opportunities in emerging markets for the dairy and other sectors.

Food Harvest 2020 targets a 20% increase in the value of output in the beef sector in the period to 2020. The Beef 2020 Activation Group, which concluded its work in 2011, laid down a more ambitious target of 40%. There has been a significant change in the dynamics of beef markets in recent times which has led to an increase of 15% in the value of beef exports in 2011 to more than €1.8 billion. A relatively tight supply situation is expected to help maintain European cattle prices during 2012. Given the likely supply/demand dynamics in the EU beef market in 2012, the challenge for the Irish beef industry is to ensure that it positions itself to maintain this momentum against the background of a difficult economic environment in Europe and elsewhere.

I am committed to the development of a strong beef sector in Ireland. In 2012, my Department will continue to operate the Suckler Cow Scheme which has been allocated €25 million of Exchequer funding. This is an important measure in the development of quality stock in the national herd. Also, I have secured funding of €5 million for a Beef Technology Adoption Programme, which I hope to be in a position to announce shortly, and of course my Department and its agencies are working hard with industry and with Irish embassies across the globe to ensure that quality Irish beef has access to as many international markets as possible. In this context, my Department will continue to provide critically important funding to support the work of Teagasc, Bord Bia and the Irish Cattle Breeding Federation.

In conclusion, I am extremely optimistic about the potential dairy and beef sectors. I will be working assiduously, in collaboration with all of the stakeholders in the sectors, including through the negotiation of the best possible deal for Irish farmers in the context of the post-2013 CAP, to ensure that these vitally important sectors reach their full potential in the period to 2020 and beyond.