Written answers

Thursday, 4 May 2017

Department of Agriculture, Food and the Marine

Agrifood Sector

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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229. To ask the Minister for Agriculture, Food and the Marine the degree to which he has explored alternative opportunities for Irish food produce on world markets with particular reference to the aftermath of Brexit; and if he will make a statement on the matter. [21337/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The pursuit and development of new markets for Irish agri-food exports is of course an ongoing and central component of the strategic development of the agri-food sector, as evidenced by its placement right at the centre of Food Wise 2025, the industry’s strategy for development over the coming decade. Indeed, this is all the more relevant after the UK’s decision to leave the EU, which presents significant new challenges for the agri-food sector in particular.

Food Wise 2025 outlines the huge potential for growth in agri-food exports to new and emerging markets, particularly in Asia, Africa and the Gulf region. This is where our efforts will be focused for the foreseeable future, particularly given the need to diversify our markets and to reduce our reliance on traditional destinations such as the UK.

In keeping with the priorities outlined in Food Wise 2025, I and Minister Doyle led trade missions to China, Singapore, Vietnam and South Korea in September 2016. In November I also led a trade mission to Morocco which was extended at senior official level to include Algeria. Earlier in 2016, senior officials accompanied a Bord Bia trade mission to Iran, and travelled on to Turkey and met with officials to discuss trade of live animals.

In February 2017 I also led a very successful Trade Mission to the Gulf Region. This covered the Kingdom of Saudi Arabia and the United Arab Emirates.

My Department is currently working with Bord Bia and Enterprise Ireland in making arrangements for other destinations for the remainder of 2017, although no final decision has yet been made in terms of content or timing. Again, markets in Asia, Africa and America are likely to feature prominently in these considerations, and I am of course ready to respond as appropriate to other opportunities that may arise. These missions will again include participants from across the agri-food sector and will feature extensive trade contacts as well as political discussions with my counterparts in the host countries.

I have also hosted a number of high level visits from countries outside of the EU including, most recently, the Chinese Minister for Administration of Quality Supervision, Inspection and Quarantine, and the Vietnamese Deputy Prime Minister, and their delegations.

These missions and visits will serve to enhance and improve our existing levels of market access in these destinations. It will also promote Ireland’s reputation as a producer of high quality, safe and sustainably produced meat and dairy products.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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230. To ask the Minister for Agriculture, Food and the Marine the degree to which he anticipates ongoing growth in the beef sector with particular reference to the Food Harvest 2020 and Food Wise 2025; and if he will make a statement on the matter. [21338/17]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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231. To ask the Minister for Agriculture, Food and the Marine the extent to which he envisages increased demand for Irish lamb on world markets into the future in view of Food Harvest 2020 and Food Wise 2025 projections; and if he will make a statement on the matter. [21339/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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I propose to take Questions Nos. 230 and 231 together.

There is a currently strong demand for meat globally including beef and sheepmeat. Figures from the European Commission's most recent Short Term Outlook for meat markets show a projected growth of per capita beef consumption of 1.2% for 2017.

With regard to the market situation for sheepmeat the European Commission’s Short Term Outlook noted that consumption of sheepmeat declined by 1% in 2016 due to a reduced availability of sheepmeat on the EU market but that consumption will increase in 2017 as production increases. The strong performance of Irish sheepmeat across the EU, not just in our traditional markets in France and the UK in recent years augurs well.

The immediate impact of Brexit was seen in weaker sterling values against the Euro. Despite this cattle prices are remaining reasonably firm so far this year.  Nonetheless the uncertainty surrounding the final outcome of negotiations presents significant challenges. Our strategy is to defend our market position in the UK while developing new opportunities elsewhere.

I led a major trade mission to four Asian Countries in September of last year and one to Algeria and Morocco at the beginning of November. I also led a trade mission to the Middle East at the end of February. By increasing our footprint internationally that we can help to mitigate the effects of Brexit and develop our agri-food sector to realise its full potential. My Department and its state agencies will continue to ensure that as many markets as possible are opened  for Irish beef and sheepmeat.

I am also very conscious of the vital role that live exports play in providing an alternative market outlet for Irish farmers. These have increased significantly in 2017, both to traditional EU and third country markets, and this is helping to provide market balance for cattle prices in Ireland.

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 extent to which he has identified positive prospects for future growth in the pigmeat and poultry sectors; and if he will make a statement on the matter. [21340/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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My Department carefully monitors developments in the pigmeat and poultry sectors, both domestically and internationally, and meets with stakeholders regularly to hear their views on developments.

The development of the pigmeat sector is a priority for me given the crucial role which the industry plays in supporting approximately 7,000 jobs including production, slaughter, processing, feed manufacture and services. The sector accounts for 5% of the total agri-food sector and is the third largest individual component. In 2016 Irish pigmeat exports were 4% higher at €615m. Exports of Irish pigmeat to International markets however grew by 20% driven by higher demand from Asia. Irish prices are currently strong and remain broadly in line with EU prices, reflecting renewed market confidence in Europe and increased demand in China, the second most important market for Irish pigmeat.

Poultry meat has long been seen as a value for money food and this has underscored an increase in demand, particularly in recent years. Irish production hit record levels in 2016. Retail sales of fresh and chilled poultry increased by approximately 8% on the Irish market in 2016 compared to the previous year, with most of this increase was attributable to broilers, while prices remained steady.

Support is provided by my Department for the development of the pigmeat and poultry sectors in a number of ways. Firstly I have included provision throughout the whole RDP for a specific Pigs and Poultry Investment Scheme with a budget of €17 million. Among the areas identified for funding are investments for energy, water meters and medicine dispensers. Other elements of the RDP, such as targeted Animal Welfare, Safety and Nutrient Storage Scheme and the Low Emission Slurry Spreading Scheme will also be of benefit to the sectors.

Other supports for development of the sector come through Teagasc which, through its Moorepark pig research facility, courses in pig production, and the provision of technical advice plays an important role in improving production at farm level. Support for the poultry sector is available through the RDP funded Knowledge Transfer programme which was launched last year.

I am also conscious of the need to promote the consumption of Irish pigmeat in domestic and overseas markets. Bord Bia provides assistance to the pigmeat and poultry sectors through its marketing and promotional activities and the quality assurance schemes which help consolidate the position of Irish pigmeat and poultry produce on the domestic market. Support from Bord Bia also helps expand the presence of Irish exports on EU and third country markets, which is evident from the continued rise in exports, particularly to Asia.

Finally, I am committed to ensuring that as many alternative markets as possible are open to the Irish pigmeat and poultry sectors to ensure the continuation of positive prospects for future growth. In that regard I recently launched a seven point plan to increase international market access for Irish food and drink exports. This will be implemented by my Department with significant input from Bord Bia and Irish Embassies around the world, to help increase the footprint of our food and drink exports. Securing access for Irish products and increasing penetration in international markets is a priority against the background of Brexit. There have been a number of significant successes in recent times and agri food exports to China, for example, have almost tripled in value to more than €700 million since 2010.

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