Tom Fleming (Kerry South, Independent)
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248. To ask the Minister for Agriculture, Food and the Marine the action and measures he is taking to address the unacceptably huge gap between Irish and British cattle prices and to remove obstacles inhibiting the live export trade; and if he will make a statement on the matter. [2209/16]

Simon Coveney (Cork South Central, Fine Gael)
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In relation to the beef sector, my role as Minister is to create a policy and support environment that allows it to flourish in line with standard market principles. I am guided in this context by the long-term sectoral development strategies as set out in Food Wise 2025 and I 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 was a relatively positive year for beef prices in Ireland with the yearly average nearly 8% higher compared to 2014. 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. Last year, Ireland exported approximately 272,000 tonnes of beef, worth in the region of €1.1 billion to the UK. This constituted 54% of the volume and 52% of the value of Irish beef exports and as such, the UK is overwhelmingly Ireland’s most important export market.

I attach substantial importance to the live export trade and my Department has been very proactive during my time as Minister in facilitating both the cross-border live trade and shipments of animals overseas. Live exports serve a dual purpose as a means of satisfying market demand for live animals and providing alternative market outlets for cattle farmers in Ireland. It is expected that 2016 will see an increase in the export of live cattle. Improving economic situations in Italy and Spain are expected to boost demand for Irish cattle and general demand for calves for veal are expected to remain strong.

Last year, live exports to all markets amounted to almost 180,000 head. Geopolitical instability in North Africa, a new veterinary regime in relation to IBR in Belgium and increased domestic prices lead to a reduction in live exports. Exports to Northern Ireland, the Netherlands and France rose, while exports to Belgium, Italy, Spain and Britain declined. Bord Bia has forecast that live exports to Italy and Spain, two traditional live export destinations, should increase in 2016 on foot on economic recovery in those economies and disease outbreaks in certain supplier regions.

There are currently three dedicated and three roll on-roll off vessels approved for the carriage of livestock by sea form Irish ports. Three more vessels are currently at various stages of the process for similar approval.