Séamus Kirk (Louth, Fianna Fail)
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531. To ask the Minister for Agriculture, Food and the Marine in view of the income prices in the dairy sector and the apparent oversupply of dairy products on the world market, if he will urgently re-examine the industry's marking strategies here with a view to sharpening future projections for the industry; and if he will make a statement on the matter. [31609/15]

Simon Coveney (Cork South Central, Fine Gael)
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Irish dairy co-operatives and PLCs export their produce to some 130 countries and of course, some 60% of Irish dairy output is marketed through a joint co-operative venture “The Irish Dairy Board” which was rebranded as “Ornua” earlier this year. These companies have already proven their capability on international markets and I am confident they will continue to do so. Planning in terms of marketing activities for the post quota period has been ongoing for a number of years. Developing a unique selling point for Irish dairy produce is a critically important element of the national strategy . It remains clearly evident, from engagement with potential customers for Irish dairy products, that the sustainability message associated with the sector in Ireland has a strong resonance. This is borne out in trade statistics that show substantial year on year increases in Ireland’s dairy sector exports from the turn of the decade. Data for the first six months of 2015 indicate that the overall level for dairy exports, at €1.9 billion approx, remains consistent with the same period for 2014, a record year.

As a support to this effort, in 2012 I announced a proposal for a new national sustainability programme for the dairy sector. This programme, the Sustainable Dairy Assurance Scheme (SDAS) was launched in December 2013 and is a key element in Ireland’s strategy for marketing and promotion of dairy products on international markets, particularly in the context of expanded milk output following the abolition of milk quotas in April of this year.

The Sustainable Dairy Assurance Scheme was developed in cooperation with milk producers, processors and regulatory authorities. It has been designed to provide a platform for measuring quality and sustainability on Irish dairy farms and to assist in securing new and existing markets for Irish dairy produce as farmers look to increase milk production in a post quota era.

To promote the SDAS to customers of Irish dairy, the industry provides a promotional fund to Bord Bia and this will be focussed across 3 primary target regions, namely Europe, China and the Middle East at a business to business level. It is worth noting that exports to China in the dairy sector were up 25% approx compared to the first 6 months of 2014, which was a record year. Exports to Saudi Arabia, the predominant market in the Gulf, was up 48% in the same period.

Bord Bia also has a central budget from Government which is used, inter alia, for the promotional activities in relation to dairy through attendance at trade fairs, market research in developing markets and consumer research. This funding has increased by 14% in 2015, and includes funding for Bord Bia to assist in the marketing of Irish food and drink including dairy at this year’s Expo in Milan. I have also led Trade Missions to a variety of destinations in recent years, including China, the United States, Algeria, Japan and the Gulf States, in order to promote Irish Food and Beverages and dairy promotion has been a significant feature of such missions. I intend to lead missions to China, Vietnam and Africa in the coming months.

Taken together, I am satisfied that the foregoing measures as outlined reflect the strong ongoing commitment to making resources available to ensure developing and exciting markets in the dairy sector can be appropriately pursued.