Tom Fleming (Kerry South, Independent)
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Question 1140: To ask the Minister for Agriculture, Food and the Marine his plans to develop the beef sector here, increase exports and create new jobs; and if he will make a statement on the matter. [19145/12]

Simon Coveney (Cork South Central, Fine Gael)
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The Food Harvest report published in 2010, offers a vision for the long-term development of the agri food sector and in the case of the beef sector, targets an increase of 20% in the value of beef output in the period to 2020. Having regard to the dramatic price and other developments since then, the Beef Activation Group, which was established to identify the specific actions needed to achieve these targets, suggested in 2011 that a more ambitious target of 40% growth in output could be set.

That report suggests that there is market demand to support growth in the suckler and dairy herds. Maximising beef output potential from the national herd is contingent on a number of factors, not least on the price of beef on EU and international markets. In light of current and future market developments, it is essential that a co-ordinated approach is taken by stakeholders to improve efficiency at farm and processing level, to breed better animals, maintain high standards of quality and food safety and maximise the market potential of Ireland's unique natural advantages.

My Department and its agencies are playing their part. Despite the significant budgetary pressures in 2012, I have provided €26 million to maintain the Suckler Cow Scheme, which underpins improvements in welfare and breeding that are critically important for the future development of the sector. To date, my Department has paid out more than €127 million under this scheme, and the animal welfare measures have contributed directly to improved prices for weanlings and enhanced the reputation of Irish livestock and beef.

The Beef Activation Group Report highlighted the need to equip beef farmers to improve efficiency, reduce costs and adopt best practice at farm level. With that in mind I have, following extensive consultation with stakeholders, introduced a €5 million Beef Technology Adoption Programme. To date my Department has received more than 7,000 applications for the scheme. Livestock farmers in BTAP will, be equipped to adopt a more businesslike approach to running their farm enterprises which will reduce costs and improve profitability.

I am also providing substantial strategic support for the beef sector through the activities of State Agencies. Bord Bia's beef marketing strategy is one of product differentiation and premiumisation, to assist industry in targeting the best customers across Europe. Since 2007, we have seen a doubling of the volume of Irish beef going to premium retail and foodservice and a rise of 15% in the volumes destined for standard retail lines. This equates to over 50,000 tonnes going to better paying outlets. Bord Bia is also developing a strong sustainability message around its Beef Quality Assurance Scheme, and in that context has secured accreditation for its beef carbon footprint model. Bord Bia's Beef and Lamb Quality Assurance Scheme is the first such scheme world wide to include environmental criteria.

On the production side, Teagasc is working with the processing industry on research projects investigating dairy beef production and on optimal young bull production, and my Department is continuing to make a substantial financial contribution to the Irish Cattle Breeding Federation to support its efforts to improve breed quality.

Insofar as international trade is concerned, I have been extremely active in developing relationships in new and expanding markets in order to build the kind of confidence in Irish production and control systems that provide a platform for long-term trading relationships in the future. As part of that effort, I am at present leading a trade delegation in China, to help to develop trade opportunities for Irish food business operators. In addition, my Department has engaged with a range of third countries, including Australia, the Philippines, South Korea, Turkey, Egypt, Algeria and others, with a view to opening new markets and expanding the presence of Irish food products in existing markets.

I should also mention the critical importance of a strong and effective Common Agricultural Policy in supporting farm incomes in the period to 2020, and I am committed to negotiating the best possible deal for Irish farmers in the context of CAP post 2013.

The Deputy will be aware that there have been dramatic price developments in global markets in recent times, based on demand and supply dynamics, and Irish beef prices have risen by 21% over the past year. I am confident that if the correct approach is taken by all stakeholders, there will be tremendous opportunities for the Irish beef sector in the coming years. I can assure the Deputy that my Department and its agencies will continue to play their part in creating an environment which will enable the beef industry to grow and develop to its full potential in the years ahead.