Written answers

Thursday, 2 February 2017

Department of Agriculture, Food and the Marine

Brexit Issues

Photo of Tommy BroughanTommy Broughan (Dublin Bay North, Independent)
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19. To ask the Minister for Agriculture, Food and the Marine the steps he is taking to protect the agri-food market in view of Brexit and in view of the fact that recent reports stated that exchange rates have already cost exporters approximately €570 million in 2016; and if he will make a statement on the matter. [4845/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I am acutely aware of the potential risks and challenges that arise in the agri-food sector from the Brexit vote, and have been taking steps both to mitigate the short-term impact and to prepare for the longer-term implications that are likely to arise in areas such as tariffs and trading arrangements, and border controls and certification requirements.   

The question refers to the most immediate impact of the vote, which has arisen from the effects of the fall in the value of sterling against the euro, with sectors such as mushrooms and forestry particularly exposed due to their high dependence on the UK market. 

In this regard it is noteworthy that Bord Bia estimates that the overall value of  agri food exports increased by 2%, to a record €11.15 billion in 2016, despite a reduction of approximately €356 million in the value of such exports to the UK. The proportion in value of exports to the UK declined from 41% in 2015 to 37% in 2016, but this was offset by increased exports to other EU and third countries.

Without diminishing the critical importance of the UK market to the Irish food sector, it is heartening to see that progress is being made on increasing the share of exports to other markets. I have provided additional resources to Bord Bia in both 2016 and 2017 to assist it in its efforts to promote Irish Food and I will be engaging in a number of trade missions in 2017 to help industry to  increase the profile of Irish food and build business relationships in overseas markets.

I will be visiting Saudi Arabia and UAE at the end of this month, and in 2016 I lead missions to China the Far East and North Africa to promote the trade agenda.

In the UK, I have met with the CEOs of major multiples and with political counterparts to assure them that Irish companies remain determined to occupy a prominent position as suppliers of high quality product on UK supermarket shelves.

In parallel with this work, my department is engaged in efforts to obtain access to new markets for Irish agri food products and to simplify certification and trading conditions in countries to which we already have access. I am currently considering a reconfiguration of this work to intensify these efforts.

 At farm level, my Department and its agencies have implemented a range of measures, a new low-interest agri-cash flow fund of €150m, a number of agri-taxation measures, and increased funding for the Rural Development Programme, to mitigate the impact of Brexit and improve the competitiveness of Irish agriculture.

I can assure the Deputy that these efforts will continue, and that progress will be monitored on an ongoing basis and in consultation with affected sectors, including through my Department’s Consultative Committee of Stakeholders on Brexit and the All Island Civic Dialogue.

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