Written answers

Tuesday, 31 March 2015

Department of Agriculture, Food and the Marine

Beef Exports

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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164. To ask the Minister for Agriculture, Food and the Marine if the beef currently being exported to the United States of America is in carcass form or in the form of processed cuts; and if this situation will continue into the future. [12810/15]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The current approval for the export of Irish beef to the US allows “intact beef” to be shipped. As of now, this beef must be sold as raw product in the US and may not be ground (minced) in the US before being placed on the market. Beef currently being exported to the US is in the form of primal and subprimal cuts. I am fully aware of the importance of securing this additional approval to export manufacturing beef given the high prices for such product in the US right now. This is an issue I also pursued with my US counterpart, Tom Vilsack Secretary Agriculture when we met in Washington. My officials are working intensively with their counterparts the Food Safety Inspection Service (FSIS) of the United States Department of Agriculture (USDA) to agree and put in place procedures to allow Ireland to export beef intended for grinding to the USA. We have agreed a roadmap for how such approval might be achieved but there are a number of processes to be completed first and we are currently working through these.

The US beef market is potentially extremely lucrative, with consumption at 11 million metric tonnes annually, which makes this new market such an exciting one for Irish producers. While grass fed is a small volume category compared to conventional or grain fed beef, currently accounting for approximately 10% of total volume, it is estimated to be growing at approximately 20%+ per annum. Consumers in this segment of the market will be a key target in the marketing efforts to promote Irish beef.

I was delighted to be able to visit the US in February to launch the arrival of Irish beef for the first time there in 16 years and I can report very strong interest from US buyers and distributors in Irish beef. The return of Irish beef to the US market was the result of significant political, technical and diplomatic efforts by my Department, Bord Bia and Irish Embassy in Washington DC. It was a collaborative effort which has borne fruit, with Ireland being the first European country to regain access to the biggest beef market in the world. All of the major Irish beef exporters that accompanied me reported strong interest from US buyers and distributors, which are already lead ing to commercial deals being signed.

I am also delighted to see that the first commercial shipments of Irish beef have landed in the US. Indeed the very first shipment was served at the annual Ireland-America Fund attended by the Taoiseach during his Saint Patrick’s day visit. This was a huge marketing opportunity to serve our beef to a hugely influential Irish-American network and one which we exploited to the full.

Currently just 2% of Irish beef exports go outside the EU each year and further diversifying the available markets has been a key element of my strategy for the beef sector for some time. This is a key element in ensuring more sustainable returns to beef farmers and ensuring that an over-reliance on particular markets does not harm the long term prospects of the sector. I am very confident that the opening of the US market is a major step forward in ensuring the long term viability of the beef sector.

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