Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

87. To ask the Minister for Agriculture, Food and the Marine the extent to which he expects this country to capitalise on the global food market in the future, with particular reference to added-value product; if he remains satisfied regarding the extent to which the markets for dairy, beef, lamb, pigmeat, poultry and fish continue to be available for Irish producers; and if he will make a statement on the matter. [34841/15]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

88. To ask the Minister for Agriculture, Food and the Marine the extent to which his Department continues to assess global markets with a view to identifying the scope for Irish exports, whether in niche or general markets in respect of dairy, beef, lamb, pigmeat, poultry and fish; and if he will make a statement on the matter. [34842/15]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 87 and 88 together.

MeatMarkets

A strong global demand for meat exists and my focus as Minister is to enable Irish exporters to take advantage of the market opportunities that arise. My Department engages on an ongoing basis with many countries, in collaboration with Bord Bia and Irish embassy staff, on market access issues. These initiatives have led to a number of notable successes in securing agreement to export Irish beef to, Japan, Singapore, Egypt, Iran and the US, to export sheepmeat to Singapore, South Africa, the Philippines the UAE, and Canada and to export pigmeat to Australia, Vietnam, the Philippines and Serbia.

In relation to China, there has been a lifting of the ban on boneless beef from Ireland for animals under 30 months. However, further work is required before trade will commence and my Department is at present engaging with the Chinese authorities on these technical aspects.

Irish beef is now listed with more than 75 high-end retail chains across the European Union. This broad portfolio of customers has contributed significantly to higher returns for Irish beef in recent years and reflects the success of Bord Bia’s differentiation and premiumisation strategy, which focuses on the key attributes of Irish beef: environmental sustainability, grass-based production systems, full traceability, quality assurance at all stages and superior eating quality. Among Bord Bia’s key initiatives in 2015 is the continued development, global promotion and marketing of the Origin Green initiative, designed to establish Ireland as a world leader in sustainably produced food and drink. Over 200 companies are currently working with Bord Bia to develop and commit to sustainability plans setting out clear targets in emissions, energy, waste, water, biodiversity and corporate social responsibility activities.

The poultry sector plays an important role within the Irish agricultural economy, accounting for approximately 2% of gross agricultural output and supporting around 5,000 jobs, most of these in rural areas. Export values for poultry meat have increased steadily over the last few years to c. €310 million in 2014, growing by 20% alone in the last year, as the value of trade was driven by increased shipments of processed products. A high proportion of these exports are destined for the UK market and redirected to international markets through agents for fifth quarter’ product like chicken feet in particular. Strong fundamentals supported demand in almost all regions of the world in 2014 and this is expected to continue in 2015, although some easing in global poultry prices is expected.

The development of a viable pigmeat sector is a priority for me, given the crucial role which the industry plays in supporting approximately 7,000 jobs including production, slaughter, processing, feed manufacture and services. In 2014 export volumes increased by approximately 7%, with growth to the UK, Continental Europe and International markets. Export values increased by some 3% and are in the range of €570 million, continuing the growth seen in recent years. The growth in Irish pigmeat exports to international markets evident over recent years has been negatively impacted by the restrictions of the Russian trade ban, however this has been offset by the opening of alternative spot markets such as Vietnam and the Philippines. These Asian markets will continue to provide valuable opportunities for Irish pork producers into the future.

Milk Markets

The milk quota regime ended on March 31st. The abolition of milk quota presents a massive opportunity for the Irish dairy sector and one which we should look forward to with confidence. Planning for the post quota period has been ongoing amongst all stakeholders for a number of years and I believe we have the right balance of measures in place to ensure that Irish dairy farmers can enter the new era with full confidence.

Irish Dairy produce is exported to approaching 130 countries and in 2014 exports were valued at over €3bn. 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. I remain 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 agrifood sector generally, in emerging markets in the Far East, North Africa, the Gulf States and elsewhere.

Since taking office I have 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. 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.

Seafood

Irish seafood exports recorded an increase of 7.3% in 2014 to reach a value of €533 million. The main EU markets, namely France, Spain, UK, Italy and Germany continue to dominate seafood exports, accounting for in excess of 50% of export values. However, this compares to a 60% share in 2012 and demonstrates the on-going focus of the leading Irish seafood exporters in the development of new business in emerging markets to offset some price resistance in core European markets.

The seafood sector offers huge potential for expansion. There are a number of significant macro trends which are expected have an impact on the future direction of the Irish seafood sector and which indicate that the prospects for this industry both at a global and European level are very favourable, especially in the medium to long term. Strong global population growth , which is expected to reach 8 billion by 2025 , will result in a huge new market for seafood. Some experts estimate that an extra 40 million tonnes of seafood will be required annually by 2030. Coupled with the forecast global population growth, the rate of income growth in the Asia Pacific region is also anticipated to have far reaching implications for the consumption and trade of seafood.

Despite the opportunities for Irish seafood in emerging markets, it is important to note that longer term opportunities are not restricted solely to these regions. One of the key achievements of the sector in 2014 was the growth in exports in the core European markets with Ireland maintaining its premium position and growing sales on the back of four years of sluggish growth. In the longer term, supply constraints in these markets as a result of the shift in global supply to the East will present niche opportunities for Irish seafood exporters. It is important therefore that Ireland’s strong position and reputation in these markets is maintained and promoted to encourage loyalty and to hold market share.

Bord Bia recognises the significant growth potential of seafood and is committed to supporting the Irish seafood sector in taking advantage of these opportunities through an expansion of its seafood marketing and promotions programme over the coming years.