Written answers

Thursday, 8 May 2014

Department of Agriculture, Food and the Marine

Agrifood Sector

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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185. To ask the Minister for Agriculture, Food and the Marine the extent to which new markets continue to be identified for beef, lamb, pig meat, poultry, venison or dairy products; the extent to which further expansion of such markets is likely; and if he will make a statement on the matter. [20600/14]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I am constantly seeking to develop relationships in new and expanding international markets for all Irish meats and dairy products, raising the profile of Ireland and increasing international confidence in Irish production and control systems. My aim is to build long-term trading relationships into the future in these sectors, particularly in new and emerging markets and since taking office I have led trade missions to China, the US, Algeria and the Gulf Cooperation Council (GCC) countries in the Middle East. In relation to the individual sectors, the latest position is as is as follows:

Dairy markets

Market analysis predicts that medium term prospects for global dairy markets are good, with growth in world population and wealth expected to stimulate strong levels of demand for dairy products. More than 85% of Irish dairy production is exported and Ireland has full market access to over eighty countries worldwide, with one third of the value of dairy exports going outside the EU. 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 the Far East, North Africa, the Gulf States and elsewhere.

Ireland strongly supported the decision to abolish milk quotas with effect from 1 April 2015 on the basis that quotas were widely regarded by both the Irish dairy sector and market analysts as a brake on the potential of the sector to respond positively to market opportunities. I expect the abolition of quotas to facilitate an expansion in the sector and through the Food Harvest 2020 Report the industry has set itself an ambitious target for a 50% increase in milk production by 2020. For my part I have been working on a number of fronts to prepare the industry for the move to a quota free environment and equip it to respond to the market opportunities arising.

Of course, the industry itself has a responsibility to focus its efforts on market and product development. Supported by Government, the Irish dairy sector has succeeded in positioning itself as a major international player and we have seen industry announcements in relation to the development of supply arrangements between Irish companies and multinational players in third countries as well as the development of value-added products which can maximise the value of our dairy output. In that context, last week the Chinese authorities announced results of an audit of Ireland’s dairy sector, which means that Irish plants have been found to fully meet the standards of China’s new food safety laws. This approval will allow the Irish dairy sector to build on their formidable reputation in international markets, and in the increasingly important Chinese market, and to further capitalise on Ireland’s reputation for green, efficient, high quality dairy production.

Meat Markets

There is a strong demand for meat globally and my focus is to enable Irish exporters to take advantage of the opportunities that arise. My Department engages on a daily basis with many countries, in collaboration with Bord Bia and Irish embassies’ personnel on market access issues. These initiatives have led to a number of notable successes in securing agreement to import from authorities in Japan, Singapore, Egypt and Iran which allow the import of Irish beef; with Singapore, South Africa, UAE, Canada and the Russian Federation-Customs Union for the import of Irish sheepmeat and with Australia and Serbia for the import of Irish pork. To date in 2014, the Lebanon has agreed to re-open its market to Irish beef, sheepmeat and cooked meats. A certificate has also been agreed with Hong Kong allowing for the export of Irish sheepmeat and agreement has been reached with Namibia on a certificate for the export of beef, sheepmeat and goatmeat.

In November 2013, the US lifted its ban on the importation of beef from the European Union. This was one of my priorities the previous year when I visited the US, where I pushed the matter strongly with the US Department of Agriculture Secretary of State, Tom Vilsack and in meetings with Senators. My Department is working with the meat industry to advance the various technical requirements to ensure commencement of the trade at the earliest possible date.

In December 2013, a delegation from my Department visited China for discussions with authorities there on the lifting of the beef BSE ban which prohibits imports from any EU country. While there are a number of stages to go before Ireland secures access for beef to China, I am hopeful that these can be progressed further in 2014.

Irish beef is now listed with more than 75 high-end retail chains across EU markets. This wide portfolio of customers has contributed significantly to higher returns for Irish beef in recent years and reflects the success of Bord Bia’s differentiation and premiumisation strategy which focuses on the key attributes of Irish beef: environmentally sustainable, grass-based production systems, full traceability, quality assurance at all stages and superior eating quality. Among Bord Bia’s key initiatives this year is the continued development, global promotion and marketing of its Origin Green initiative, designed to establish Ireland as a world leader in sustainably produced food and drink. Over 200 companies are currently working with Bord Bia to develop, and commit to, sustainability plans setting out clear targets in emissions, energy, waste, water, biodiversity and corporate social responsibility activities.

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