Bernard Durkan (Kildare North, Fine Gael)
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1659. To ask the Minister for Agriculture, Food and the Marine the extent to which the dairy sector continues to develop in order to maximise employment and exports into the future; and if he will make a statement on the matter. [28425/17]

Michael Creed (Cork North West, Fine Gael)
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Market analysis predicts 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.  More than 85% of Irish dairy production is exported to some 130 countries worldwide.

Bord Bia figures show that the value of Irish dairy and ingredient exports for the year 2016 increased by around 2% compared with 2015, despite a very difficult global context. CSO data shows an approximate 8% increase in the value of dairy exports for the period January to March 2017 compared with the same period in 2016, with the growth in value driven primarily by butter, cheese, whole milk and enriched dairy powder exports.

My Department, its agencies and I continue to work with industry to raise the profile of the Irish dairy sector in markets worldwide. This involves diversifying our trading relationships wherever possible, including emerging markets in the Far East, North Africa and elsewhere as well as deepening existing trading relationship. For example, dairy forms an integral part of the current trade mission to the USA and Mexico.

A key element of Ireland’s marketing strategy is to optimise the already positive green image of Ireland in order to create a point of differentiation for Irish dairy products on international markets.  In this context, the National Sustainability and Quality Scheme for the dairy sector aims to capitalise on Ireland’s reputation for green, carbon efficient, high quality dairy production. 

At processing level, Bord Bia’s Origin Green Programme is providing a vehicle for industry to commit itself to sustainability targets. This pro-active approach to environmental sustainability has a strong resonance with procurement strategists of many multi-national food companies.

Supported by Government, the Irish dairy sector has succeeded in positioning itself as a major international player. We have seen industry announcements in relation to the development of supply arrangements between Irish companies and multi-national players in third countries, and the development of value added products which can maximise the value of our dairy output.

I am confident that the collaborative efforts of Government, the processing industry and the producers will ensure a thriving and sustainable dairy sector that can fully leverage the natural advantage of Ireland’s grass-based production system.