Written answers

Wednesday, 21 March 2012

Department of Agriculture, Marine and Food

Food Industry

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 565: To ask the Minister for Agriculture, Food and the Marine the extent to which he expects Irish food exports to increase over the next 12 months on European or global markets; and if he will make a statement on the matter. [14852/12]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context

The prospects for Irish food and drink exports in 2012 are positive. That being said, lower output availability in some sectors and softening global commodity prices are likely to result in more limited growth potential than the 25% export growth achieved in the past two years. In that context the Central Bank forecast an overall export growth of 5.9% in 2012 and in Milestones for Success , I have already indicated export milestones of €9 billion in 2013 and €10 billion in 2015.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 566: To ask the Minister for Agriculture, Food and the Marine the degree to which Irish food exports remain competitive on European and world markets; and if he will make a statement on the matter. [14851/12]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context

The fact that agri-food exports increased by 25% over the past two years is an indication that this sector remains competitive on European and world markets. This view is also borne out by the Forfas produced National Competitiveness Scorecard, which benchmarks Ireland's competitiveness against 17 key competitors. In July 2011, it indicated that between April 2008 and February 2011, Ireland's Harmonised Competitiveness Index (HCI) depreciated by over 12%, which is helping the sector's competitiveness on export markets.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 567: To ask the Minister for Agriculture, Food and the Marine the extent and location for new markets established for Irish food exports in the past two years and to date in 2012; and if he will make a statement on the matter. [14850/12]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context

My Department, together with Bord Bia and the Department of Foreign Affairs and Trade continues to place the highest priority on ensuring and developing market access to markets worldwide for Irish food products. Bord Bia estimates that the value of Irish food and drink exports increased by 12%, or €1 billion, in 2011 to reach an all-time high of €8.85 billion. For the first nine months of last year, food and drink exports increased at three times the rate of total merchandise exports. As a result the sector accounted for 25% of the rise in total export revenue. Over the last two years, the value of Irish food and drink exports has increased by €1.8 billion or 25%. It is also estimated that Irish Food & Drink is exported to 170 countries world-wide. Bord Bia undertake a comprehensive review of market opportunities every two years and prioritize markets according. The objective is to identify opportunities which best match our export potential and allocate resources on this basis. This does not always equate to increasing the number of countries involved but focuses on the best opportunities in terms of returns. That said I am of the belief that it is always beneficial to have a wide range of outlets available for our high quality agricultural produce. To this end my Department engages with Bord Bia and the Department of Foreign Affairs, in consultation with the industry, to secure access to more third country outlets.

In relation to meat, we reached agreements in 2010 and 2011 with the authorities in Tunisia, Morocco, Turkey, Egypt and Singapore which allow for the export of Irish beef. In 2010 the Russian and Chinese markets were re-opened to Irish pork following the dioxin crisis. My Department has also hosted visits in the past two year by official delegations from Morocco (beef access), Israel (beef and sheep access), Philippines (beef access), Australia (pork access), China (pork and beef access) and Korea (pork access) as part of our efforts to gain access for Irish meats to these rapidly growing markets. There are ongoing discussions at EU level with the Russian Federation which, it is hoped, will allow for the export of sheepmeat from EU counties (including Ireland), in the future, and we have been pressing at EU level for an adjustment in the US TSE rule which would permit Irish and EU beef and sheepmeat to be exported to the US. In this regard the Deputy may be aware that last week I welcomed the fact that the US has begun the process of bringing their BSE requirements for imports into line with those of the OIE. Longer term targets for Irish meat access include China for beef and lamb, and Japan for beef. In this regard I will shortly be visiting both China and the US to raise the profile of the Irish Agri food industry, and market access issues will be raised during those visits. Other targeted markets include access for Irish beef and lamb to the North African and Middle East regions. My Department is engaging actively with the authorities in these countries in order to secure access for these products. There is a strong demand for meat globally and my Department remains focused, in consultation with the industry, on ensuring that Irish exporters are able to take full advantage of the opportunities that arise. At present 20% of all Irish pork is exported outside of the EU and most Irish exports of beef and lamb go direct to other EU countries.

On the dairy side, Ireland already has access to dairy markets worldwide. Nonetheless I am working with industry to raise the profile of the Irish dairy sector, and the Irish agri food sector generally in emerging markets. In this regard I visited Algeria last September to meet my counterpart, Minister Rachid Benaissa and to open a new Irish Dairy Board Office and Packing Centre in what is already a significant, but expanding market for Irish dairy products, and I am confident that my continuing work in this area will ultimately pay dividends for the dairy and other sectors.

In terms of seafood, Ireland exported €420 million of seafood to over 70 countries globally during 2011, an increase of 13%. European markets remain the key outlet for Irish seafood exports, accounting for 63% of exports in 2011, with a value of €265 million. The key export markets in the region are France, Spain, Italy and Germany, all of which showed strong growth during 2011. The UK continues to account for 10% of seafood exports, with trade worth €45 million in 2011. There was strong growth in the value of seafood exports to international markets in 2011, led by Asia, Russia and Africa. More than a quarter of Irish seafood exports are now destined for markets outside of Europe. This trade was worth an estimated €110 million in 2011. Bord Bia maintains a dedicated seafood presence at appropriate international trade shows. These trade shows are essential to allow Irish seafood processors to maintain contact with key international buyers and to identify new market and product opportunities. Bord Bia will be participating in trade shows in Nuremburg, Brussels, Vigo and China in 2012.

It is important to point out that once my Department has obtained access to markets for any agri food products, the extent to which those markets are exploited by Irish agri food businesses is determined by the usual commercial considerations, including demand, supply and price. My Department and I remain committed to working with industry, through Bord Bia and with the assistance of the international network of Irish Embassies, to raise the profile of Ireland and the Irish agri food sector, and to build the kind of confidence in our production and control systems that forms the foundation of successful international trade, so that Irish agri food businesses can continue to develop a strong international profile and increase exports in traditional and emerging markets.

In terms of the scoping and development of new markets, Bord Bia implements a comprehensive market development programme to acquire new customers for Irish food and drink companies in priority markets. Through a network of 10 overseas offices, Bord Bia undertakes in excess of a thousand buyer presentations/meetings per year. In addition the Bord Bia Marketing Fellowship with 26 experienced graduates undertaking 106 commercial assignments in 12 overseas markets from the US to South Korea delivers increased business and market insight for about 80 exporting companies. Bord Bia's Marketplace International 2012 held in February was the biggest event it has ever hosted and brought over 500 buyers together with 176 companies.

Comments

No comments

Log in or join to post a public comment.