Written answers

Tuesday, 31 March 2015

Department of Agriculture, Food and the Marine

Exports Growth

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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356. 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 and in 2015 to date; his expectations for the future in this regard; and if he will make a statement on the matter. [13363/15]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Dairy exports in 201 4 were valued at over €3bn and the dairy sector is by a number of measures the country’s largest indigenous industry. Due to its reputation and significant global footprint, the dairy sector in Ireland retains significant future growth potential. The removal of quotas will be a key driver in this respect. Ireland exported dairy products worth €2.3Bn in 2010 and by last year this had risen by over one-third to over €3bn. A number of trends are evident when comparing Ireland’s dairy export profile with that which prevailed 5 years ago. Key among these would be a broadening of the Irish dairy sector’s export base, with some 40% of Irish dairy trade destined for international markets, with this trade worth approximately €1.24bn in 2014. Last year, Irish dairy products were exported to approaching 130 countries. Another key trend is the move towards higher value added products such as infant formula. This is reflected in the fact that in 2010, Ireland exported less than €600M worth of infant formula globally and by 2014 this figure had increased by more than 50% to well over €900M.

I am acutely aware of the need to develop as many market outlets as possible for Irish dairy products. Notwithstanding our successful trade performance, I continue to work 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. China is an obvious destination for certain dairy products and in particular for dairy based infant formula and I have led two very significant trade missions there since taking office in addition to trade missions to the Gulf States and the US to promote Irish dairy. My Department, along with Bord Bia, is working very closely with the industry to build on our presence in all of these locations. 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.

Most market analysts predict 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. My aim is to help position the Irish dairy sector to be able to take advantage of this opportunity.

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