Written answers

Thursday, 9 March 2017

Department of Agriculture, Food and the Marine

Food Exports

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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14. To ask the Minister for Agriculture, Food and the Marine the extent to which he has monitored the potential market growth for Irish food and food products globally; the markets or products that have shown the greatest potential; the extent to which he expects to maximise the impact on these markets in the future having particular regard to geopolitical developments; and if he will make a statement on the matter. [12343/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The Irish food and drink sector has recorded seven consecutive years of export growth, passing the €11 billion mark in 2016.  The strongest performers last year were dairy, pigmeat, sheepmeat, beverages and prepared foods.  While export markets look set to remain challenging in this year, amid some market uncertainty, the pickup in dairy demand is expected to continue while further opportunities are likely in beverages. 

International markets led the growth in exports in 2016, contributing over 80% of total growth in exports and rising by an estimated 13% to just under €3.5 billion or 31% of exports.  International trade in 2016 was led by stronger exports of dairy, beverages, prepared foods, pigmeat and beef. Overall, international exports were driven notably by the US, where exports increased by 23% to €955 million and China which recorded an increase of 35% driven principally by dairy and pigmeat. Increases were also recorded in other Asian markets.

Exports to the UK were 8% lower at €4.1 billion, affected by a weaker sterling.  The share of exports to the UK declined from 41% to 37% by contrast to the increases in international and other European markets.

Exports to the other European markets increased by 3% in 2016 to reach just over €3.5 billion or 32% of total food and drink exports.  Increases were recorded in meat, seafood and prepared foods. Growth was driven by strong performance on the Netherlands, German and French markets.  Exports to Spain, Poland and Scandinavian markets also increased.

The bulk of Irish food and drink production is destined for markets outside Ireland.  Policy has been both to build on existing markets and to identify opportunities for further market diversification. FoodWise 2025 highlights the importance of retaining a presence in mature markets and the huge potential for growth in exports beyond EU markets, in particular China, South East Asia , Middle East and Africa.

The programme of trade missions which I have undertaken with my Department and agencies in the past reflects this trajectory.  We will continue to review progress market by market in the FoodWise High Level Implementation Committee, which I chair, and in interdepartmental fora.

Photo of Martin KennyMartin Kenny (Sligo-Leitrim, Sinn Fein)
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15. To ask the Minister for Agriculture, Food and the Marine his views on whether the prices being received by Irish farmers are not reflective of the quality of produce (details supplied); and his further views on whether the marketing of Irish meat is placing sufficient emphasis on the unique quality of the produce in a European Union context. [12339/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Most meat produced in Ireland is exported.  Exporters and Bord Bia are engaged on an ongoing basis in identifying market opportunities and building market relationships based on the high quality of quality assured and sustainably produced Irish beef and sheepmeat.  As export markets may have a local preference orientation, it is impressive that Irish beef was exported to 84 export markets in 2016.

Prices paid for R3 steers by Irish meat plants during the week ending the 25thof February averaged €3.72/kg excluding VAT. This compared with an average price of €4.17/kg for R3 steers in the UK and an average price of €3.75/kg paid for R3 young bulls around continental Europe.  The British price in Sterling terms has fallen consecutively each week of 2017.  The current Irish cattle price has been largely stable since the beginning of 2017 while cattle supplies have been increasing.  The most recently available data show that weekly throughput at Irish export premises reached almost 36,000, its highest level for this time of year for over ten years.

In the lamb sector, reported prices at Irish meat plants averaged €4.61/kg excluding VAT for the week ending the 25thof February. This represents a 12% decline on this time last year, when hogget prices averaged €5.26/kg.  It is below the levels of 2015 and 2016 but on a par with 2014 and previous years and an improvement on January and February.  To-date in 2017, Irish sheep supplies have risen by 15%, or 53,000 head.

For pigmeat, the latest reported price for week ending the 25thof February was €1.60/kg excluding VAT, a 17% recovery on equivalent 2016 levels. This is largely driven by growing demand for frozen pork and offal products in China and a fall in production there.  The medium-term outlook for the sector is optimistic . 

Supplies have tightened somewhat in recent weeks, and UK prices have also recovered somewhat.

Irish beef exports in 2016 reached 535,000 tonnes in 2016, the highest level in more than a decade and were valued at €2.38 billion. Overall exports of Irish meat and livestock were valued at €3.66 billion. This represented one third of total food and drink exports.  Both Irish pigmeat and sheepmeat exports increased in 2016, by four per cent to €615m and €240m respectively.  

Winning customers in global markets is achieved by demonstrating the quality of our produce and the Bord Bia Quality Assurance Scheme and Origin Green initiative are critically important in this endeavour.  Irish beef is purchased by the largest three UK retailers, arguably the most valuable market of scale. Beef exports to Germany have almost trebled in value over the past five years.  The membership of the Bord Bia Chef's Irish Beef Club attests to the high reputation of Irish beef.  Last week Bord Bia welcomed the first member from outside Europe at an event in Dubai.  This club which comprises over eighty award winning chefs who are advocates of Irish beef is evident of the premium positioning of our product in export markets.

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