Denis Naughten (Roscommon-South Leitrim, Independent)
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555. To ask the Minister for Agriculture, Food and the Marine his plans to engage with the EU Commission to have current failures in the common market surrounding the export of live cattle to Northern Ireland and Britain addressed; and if he will make a statement on the matter. [32612/14]

Simon Coveney (Cork South Central, Fine Gael)
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Under the rules governing t he free movement of g oods and services within the EU, a ll Irish beef producers have ready, unimpeded and equal access to all EU Member State markets without restriction. Artic les 34 to 36 of the Treaty on the Functioning of the European Union prohibit Member States from maintaining or imposing barriers on intra-EU trade in goods. These provisions give rise to the principle of mutual recognition whereby each Member State is obliged to accept onto its market products which are legally manufactured or marketed in another Member State. Member States can only refuse to apply this principle in cases where there is an overriding public interest (e.g. public safety, public or animal health or the protection of the environment). Even then, all trade restrictive measures taken must be necessary for, and proportionate to, the protection of the public interest concerned. My Department attaches considerable importance to the live export trade and, over the years, has been very active in facilitating both the cross border live trade and shipments abroad.Live exports serve a dual purpose as a means of satisfying market demands for live animals and providing alternative market outlets for farmers. Total live exports to the end of June this year stand at almost 160,000 head of which almost 28,000 went to the UK, an increase of some 3,300 head or 14% up on the comparable period in 2013. Of this 28,000, some 20,200 went to Northern Ireland which is an increase of 5% on the same period in 2013.

However, the potential to grow the live trade to the UK even further is constrained by the buying specifications operated by the British retail chains in relation to cattle born in this country and exported live for finishing and processing in that market. The retailers’ longstanding policy is to market British and Irish beef separately. This means that beef must be sourced from animals originating in one country; i.e. born, reared and slaughtered in the same country. In addition, logistical difficulties arise when a small number of Irish-born animals are slaughtered in a UK meat plant. Under mandatory EU labelling rules, these carcases have to be deboned in a separate batch, packaged and labelled accordingly, thereby incurring additional costs for the processor. These issues are a matter of commercial preference, both of slaughter plants in the UK and Northern Ireland, and of UK retailers.

While Bord Bia has repeatedly raised this issue with British retailers over the years, they are unlikely to reverse their marketing policy in the short term. The fact that the price of British beef has fallen significantly in recent times, and that the three UK retail outlets which stock Irish beef are currently under pressure to stock more British beef, is also a relevant consideration in this regard. Nevertheless Bord Bia, in its ongoing interactions with British customers, will continue to pursue all opportunities to maximise the full potential of the beef and livestock trade with our largest trading partner. In addition Bord Bia actively supports the development of the live export trade through the provision of market information, developing market access and promotional activity.

In addition I am engaging with Northern counterpart, Ms Michelle O’Neill, in this regard. In so far as common market rules are concerned, however, as I have already explained, the issues relating to purchase of Irish born animals by NI slaughterhouses and the purchase of the meat from such animals by UK retail outlets are a matter of commercial procurement strategy by these operators.