Written answers

Tuesday, 17 November 2015

Department of Agriculture, Food and the Marine

Beef Industry

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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307. To ask the Minister for Agriculture, Food and the Marine the actions he has taken to ensure a premium price for Irish beef processors given the increasing differential between beef prices in Irish factories and in British factories; and if he will make a statement on the matter. [40702/15]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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My role as Minister in relation to the beef sector is to create a policy and support environment that allows it to flourish in line with standard market principles. In this context, I am guided by the long-term sectoral development strategies set out in Food Wise 2025 and am confident that these initiatives, in conjunction with the Rural Development Programme, will lead to continued growth in terms of profitability and efficiency of the sector as whole.

As with any Minister for Agriculture in the EU, I can have no role in influencing commodity prices in Ireland. I do note however that 2015 has been a relatively positive year for beef prices in Ireland with the yearly average to date up 8% on last year.

Of course, the primary determinant of prices in any market is the relationship between supply and demand. Price variations in different EU beef markets reflect prevailing conditions in those markets. With regard to the price differential between Irish and UK cattle, a number of factors have been identified to explain why Irish-born cattle command lower prices than their British equivalents. These include a British consumer preference for indigenous product as well as additional transport and processing costs in supplying that market.

Export markets are vital for Ireland as we export 90% of the beef we produce. Last year, these markets were worth €2.27bn and my Department, along with Bord Bia and other agencies, have worked tirelessly to expand opportunities for Irish beef to be sold abroad. To this end, in 2015 we have opened the US market and I am pleased to confirm that almost €9m of beef has been exported there already this year. In addition we are the first EU country to have its beef ban lifted by China and we are working closely with the Chinese authorities to open this market to trade. In addition, in 2015 we have secured access to the Omani and Canadian markets as well as an extension to the Philippines. This latter market has been particularly valuable and is on course to be worth over €20m this year. I am always conscious of the need to find new markets for Irish beef and in that regard my Department will continue to target new export opportunities in third country markets.

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