Written answers

Wednesday, 30 November 2016

Department of Agriculture, Food and the Marine

Dairy Sector

Photo of Martin KennyMartin Kenny (Sligo-Leitrim, Sinn Fein)
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20. To ask the Minister for Agriculture, Food and the Marine his plans to deal with the forthcoming increase in stock in the dairy sector and its inevitable impact on the beef market. [37696/16]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I am very aware that following a positive start to 2016,beef farmers have faced a number of challenges as the year has progressed. The immediate impact of Brexit has been seen in our currency exchange rates and has affected our primary major export market. Beef production is also up here and in the UK in 2016.

Looking at the market outlook for the remainder of the year it is estimated that the total number of cattle available for slaughter at export plants for the year 2016 is expected to be between 70,000 and 80,000 greater than 2015. Figures for the year so far to the week ending 20th November 2016 show that approximately 71,000 extra cattle have been slaughtered so far this year compared to the same period in 2015, an increase of 5.2%.

I am very much aware of the impact that the expansion in the national dairy herd will have on the Irish beef herd and this matter was discussed by all stakeholders at the most recent meeting of the Beef Roundtable. The true impact any increase in the number of cattle in the national herd will have on the beef market will be determined by different factors such as slaughter dates which will vary depending on the system of production on different farms. I have also asked Teagasc to undertake some analysis on the routes to market for the increased number of dairy calves and they have recently completed this work. We will now analyse it with the relevant stakeholders and consider some next steps.

One of the key elements in coping with an increased supply in Irish beef is ensuring that there is a market for such beef. There is a strong demand for meat globally including beef and figures from the European Commission's most recent Short Term Outlook for meat markets show a projected growth of per capita beef consumption of 2.1% for 2016. Whilst we exported approximately 97% of our beef exports in 2015 to the UK and EU I am very conscious of the importance of growing international markets as a valuable outlet for any increased Irish beef production. Indeed this is a crucial component of the Food Wise 2025 strategy. Very significant progress has been made in this context in recent years and my Department is currently in the process of attempting to secure beef access to a range of Third Countries including China, South Korea, Ukraine, Thailand and Vietnam. This builds on the opening of some major markets in the last two years including the US, Canada and Japan. This is a vital means of providing Ireland’s beef sector with as many commercial opportunities as possible for Irish beef in addition to our existing European markets.

I am also very conscious of the vital role that live exports play in providing an alternative market outlet for Irish farmers especially in an environment where the number of calf births has increased in recent years. The recent opening of the Turkish market for live cattle exports has seen over 8,000 cattle make the trip so far, a number which will increase further by the end of 2016. I also note that exports of live cattle to Libya have recommenced which is a positive and welcome development. My Department is also currently actively examining the possibilities of bilateral health certificates for the export of cattle to Kazakhstan, Montenegro and for breeding cattle to Morocco. I remain actively committed to ensuring that Irish beef producers have the option of exporting to as many markets as possible.

One of my priorities now, particularly in the context of Brexit is to further increase the market opportunity for Irish food and drink internationally. We are after all an exporting nation with 90% of our food produce leaving the island. It is for this reason I led a major trade mission to four Asian Countries in September and one to Algeria and Morocco at the beginning of November.It is only through further increasing our footprint internationally that we will help to mitigate the effects of Brexit and develop our agrifood sector to realise its full potential.

My Department and state agencies such as Bord Bia will continue to work to ensure that any increase in production from the Irish beef herd can deliver a viable return to the Irish Beef sector and the primary producer. I allocated additional funding to Bord Bia in Budget 2017 for the specific purpose of dealing with the impact of Brexit which help to support Irish food and drink exports in 2017. This, in addition to the opening of a new office by Bord Bia in Singapore this year, will ensure that exports of Irish beef are promoted effectively to provide viable export markets for any increases in Irish beef production.

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