Bernard Durkan (Kildare North, Fine Gael)
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191. To ask the Minister for Agriculture, Food and the Marine the extent to which the various markets for Irish dairy products have expanded in each of the past five years to date; and if he will make a statement on the matter. [20606/14]

Simon Coveney (Cork South Central, Fine Gael)
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More than 85% of Irish dairy production is exported and Ireland has access for dairy products to over ninety countries worldwide, with one third of the value of dairy exports going outside the EU. In 2013, the value of dairy exports increased by 15 per cent to some €3 billion for the first time. The Central Statistics Office provides a detailed annual breakdown of the volume and value of trade to all destination countries.

Notwithstanding this successful trade performance, 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. I have been very 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. 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.

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.

A key element of this market strategy is to optimise the already positive green image of Ireland in order to create a point of differentiation for Irish dairy products on international markets. In this context, I was delighted to launch the Sustainable Dairy Assurance Schemelast December. The scheme has the potential to really boost the competitive advantage of Irish dairy products on the global market. Ireland’s strong sustainability positioning is fundamental to this. At processing level, Bord Bia’s Origin Green Programme is providing a vehicle for industry to commit itself to sustainability targets by reducing energy inputs, minimising overall carbon footprint and mitigating the impact on the environment. This pro-active approach to environmental sustainability has a strong resonance with procurement strategists in the many multi-national food companies who are interested in using Ireland as a source of high quality food ingredients and processed products.

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 multi-national players in third countries, and 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.