Written answers

Wednesday, 13 July 2016

Department of Agriculture, Food and the Marine

Beef Industry

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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232. To ask the Minister for Agriculture, Food and the Marine the degree to which he sees opportunities for improvement and expansion in the beef and dairy sectors; and if he will make a statement on the matter. [21568/16]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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There is a strong demand for beef globally and my role as Minister is to facilitate market access and to enable Irish exporters to take advantage of the opportunities that arise. In 2015 Ireland exported an estimated €2.2 billion, or approximately 500,000 tonnes of beef, to almost 80 countries around the globe. Food Wise 2025 acknowledged that there is a rising global population together with the growing middle classes in a number of rapidly growing economies and changing dietary patterns to incorporate increased protein consumption. Taken together these provide a great opportunity for increasing the exports of high quality, safe and sustainably produced Irish beef. As a member of the European Union and the Common Market, Ireland already has full market access to the 27 other EU Member States for beef and other commodities produced.

Therefore Ireland has ready market access to a population of over 500 million inhabitants, which indeed is one of the many benefits that comes with being a Member of the EU. The majority of Irish beef exported is to other EU Member States. According to Bord Bia, in 2015 some 52% of Irish beef exports went to the UK and 36% went to other EU markets. Recent events in markets close to home have highlighted once again the importance of diversifying our international beef markets. As an exporting country, accessing new markets is crucial to the long-term sustainability of our beef sector.

The balance of our beef exports was to non EU markets including the USA, Middle East, Philippines, Hong Kong, Ghana and Switzerland amongst others. These Third Country markets are increasingly an important alternative outlet for the industry. My Department engages on an ongoing basis with many Third countries, in collaboration with Bord Bia, the meat industry, Department of Foreign Affairs & Trade and the European Commission on various market access issues. My Department continues to push strongly for market access to other Third Countries.

In 2015 Ireland had some notable successes including becoming the first EU Member State to gain beef access to the USA, having a BSE ban lifted by the Chinese authorities and negotiating an extension to our market access to the Philippines, where we are now the second largest supplier of beef. More recently beef markets in Canada, Oman and the Maldives have also been opened. Significantly our access to the US market was recently further extended to incorporate manufacturing beef, as a testament to our beef production and regulatory systems. It is expected that similar extended beef access to Saudi Arabia will be achieved shortly. We are currently in the process of trying to secure beef access to other third countries including, inter alia, China, South Korea, Israel, Ukraine and Vietnam. It is my intention to continue to focus on developing as many third country markets as possible in order to provide exporters as many commercial opportunities as possible in a competitive global marketplace.

Dairy exports in 2015 were valued at over €3.2bn and the dairy sector is by a number of measures the country’s largest indigenous industry. Due to its reputation and significant global footprint, the dairy sector in Ireland retains significant future growth potential. Last year, Irish dairy products were exported to approaching 130 countries.

I am 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 agri-food sector generally, in emerging markets in the Far East, North Africa, the Gulf States and elsewhere. China is an obvious destination for certain dairy products and in particular for dairy based infant formula and I intend to lead a trade mission there in the Autumn. My Department, along with Bord Bia, is working very closely with the industry to build on our presence in all of the aforementioned locations. I am acutely aware of the need to continuously develop relationships in new and expanding markets in order to build upon the kind of confidence in Irish production and control systems that provide a platform for long-term trading relationships in the future.

Whilst we are currently experiencing a period of prolonged volatility, 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.

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