Written answers

Tuesday, 6 October 2015

Department of Agriculture, Food and the Marine

Beef Exports

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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378. To ask the Minister for Agriculture, Food and the Marine his views on Central Statistics Office figures showing that 31 tonnes of Irish beef worth just €194,000 was shipped to the United States of America in the first half of 2015, well behind the end of year target of 20,000 tonnes, worth €100 million; the progress in securing a licence to export manufactured beef into the same jurisdiction; and if he will make a statement on the matter. [34319/15]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Figures provided by exporters eligible to ship beef to the United States indicates that exports to date had reached approximately 330 tonnes by early September, with an approximate value of €2.1 m. This is a very encouraging start to our re-entry into the American market, particularly given that the trade to date is confined to intact cuts as we currently await approval to export beef intended for grinding. It must be remembered that only two plants were eligible to export up to mid-May and June respectively. There are now six plants approved to export, and my understanding is that this momentum in exports will continue and grow right through to the end of 2015. As with any new market it takes time to build reputational brand and a customer base and the real time to assess its value is when these are bedded down.

My Department continues to engage with the relevant American authorities in order to agree on a protocol which would allow the export of beef intended for grinding from Ireland to the United States and some progress has been made towards this objective. However, it would appear that the USDA will not make any decision on this issue until the audit currently being carried out on US-approved plants in Ireland by the Food Safety Inspection Service has been completed and the report finalised.

It is important to note that relatively high prices available for beef in Europe this year mean that US buyers are priced out of the market and Irish exporters are choosing to send product to more valuable markets in the UK and on the Continent. Exports to the UK are up 4,000 tonnes compared with the same period in 2014 which were in turn up 9,000 tonnes on 2013. The fact that the rise this year also coincides with a reduced kill overall (back about 10% year on year) highlights further the strength of Irish beef exports in the UK. This of course is helped by a strong sterling and weak euro.

Overall, 2015 has been a relatively positive year for beef prices in Ireland with the yearly average to date 10% up on last year, €4.07 compared to €3.70 in 2014. Prices last week are 10% up on the same week last year notwithstanding recent price decreases. Ireland is currently at 104% of the EU 15 price and 107% of the EU 28 price.

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