Bernard Durkan (Kildare North, Fine Gael)
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135. To ask the Minister for Agriculture, Food and the Marine the extent to which he expects the agri-food industry to benefit from EU reforms such as Common Agricultural Policy and the abolition of milk quotas; and if he will make a statement on the matter. [26526/14]

Simon Coveney (Cork South Central, Fine Gael)
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As I have stated previously achieving political agreement on CAP reform was a major success for the Irish Presidency of the EU Council and it provides a well-balanced package of measures for our largest indigenous industry. These measures enhance the possibility of achieving Ireland’s ambitious growth strategy for the agri food sector, as envisaged in Food Harvest 2020.

In particular the CAP Reform package established agreement on the basic share of the direct payment and on rural development reforms, which secures the production base of the Irish meat and livestock sectors. This in turn leaves farmers and other operators at the production base of the agri food sectors better positioned to both meet the competitive challenges and exploit the export opportunities of the international marketplace.

The agri-food industry is Ireland’s largest indigenous manufacturing industry. Collectively the industry is responsible for some 140,000 jobs and has an annual output of more than €20 billion, with a huge reliance on exports.

Given this importance of exports, I have consistently placed great emphasis on developing relationships in new and expanding markets for all Irish meats and dairy products 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. I am continuing to work with industry to raise the profile of the Irish agri-food sector generally.

Notwithstanding current difficulties, there is a strong demand for meat globally and my focus continues to be 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. 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.

On the dairy side my Department strongly supported the decision to abolish milk quotas 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. All indications are that the abolition of quotas next April will bring about an expansion in the sector as the industry begins, in earnest, the quest to achieve the 50% increase in production target it set for itself in Food Harvest 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.

There is no doubt that the realisation of this increased production target will be dependent on the achievement of maximum efficiency at production and processing levels. It will require particular focus on the changes needed in milk processing, in on-farm competitiveness and in the transfer of technology and knowledge to dairy farmers. It will also require investment in R&D and in marketing. The Irish dairy sector is well placed to deliver on those objectives. Significant progress has already been made in gearing the industry up to meet the challenge of a liberalised market. At farm level my Department, in conjunction with Teagasc, has been providing support to milk producers through various measures: The Dairy Efficiency Programme has provided assistance to help improve skill sets and increase on-farm efficiency, so that they can achieve better economic returns. More enhanced Knowledge Exchange measures are being proposed under the new Rural Development Programme. The Dairy Equipment Scheme encouraged capital investment to ensure farmers are equipped to gear up for expansion and a follow on Scheme is also proposed under the new Rural Development Programme. Support for AHI and ICBF programmes to improve animal health and genetics are helping to position the milk production sector to capitalize on the market opportunities afforded by an increasing global population and expanding demand for dairy products. At processor level, the major players in the sector are currently engaged in significant capital investment and expansion to prepare themselves for the increased production. The promoters of these expansion plans are confident that the demand from emerging markets will ensure strong returns for their dairy products. Over 85% of Irish dairy production is exported and growth in global population is forecast to stimulate strong levels of demand for dairy products.