Written answers

Tuesday, 3 October 2017

Department of Agriculture, Food and the Marine

Food Exports

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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77. To ask the Minister for Agriculture, Food and the Marine the extent to which he continues to engage in the identification of alternative markets for Irish food and food products within the EU and elsewhere with a view to amelioration of the impact of Brexit; the extent to which he has identified the companies exporting to the UK which have suffered as a result of currency and other issues relating to Brexit; the extent to which he can identify supportive action without breaching state aid rules; and if he will make a statement on the matter. [41669/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The identification of alternative markets for Irish food and food products within the EU and elsewhere has been a key priority for me and my Department and we have renewed our efforts in this regard against the background of Brexit. 

It is critical at this time to work towards diversifying market outlets for our agri products, while at the same time retaining access to the critically important UK market. I have supported Bord Bia’s marketing strategy by initially allocating €3.6m for market work in 2016 and 2017 and more recently by allocating a further €6.7m to support a market prioritisation exercise and a range of strategic marketing and promotion activities.  

In order to retain the hard won markets within the UK, I have met with the CEOs of the major UK retailers to impress upon Ireland's continued commitment to the meeting the requirements of UK retailers and consumers.  Next month I will lead a further Trade Mission to South East Asia, this time to Japan and the Republic of Korea where I hope to deepen trade ties and develop new market opportunities.

The strategy for the identification of new markets links the market access efforts of my Department with both the market insights and supports available from Bord Bia and the measures to improve competitiveness at company level operated by Enterprise Ireland.  An active programme of trade missions combines these efforts and those of Ireland’s embassy in a "team Ireland" approach to trade development.  

Last March Bord Bia established a "Brexit Barometer" for the purpose of assessing the preparedness for Brexit of food businesses who have significant trading relationships in the UK. In all, 135 companies completed a Brexit Barometer assessment and each participating company has received an assessment identifying the levels of risk across a range of topics and documentation setting out actions for mitigating some of the risks identified. 

The main findings from the exercise were that, that while a lot of companies had an ambition to grow into the UK market, they did not have a marketing strategy and did not have a marketing resource. Bord Bia is helping the companies to address these deficiencies and it is also assisting them with the difficulties caused by the drop in the value of sterling, by ensuring that they have some sort of cushion built in to their marketing strategy.

There is no doubt that Brexit is posing enormous challenges for the agri food sector by virtue of its reliance on the UK market and the most immediate challenge has been the impact caused by the significant drop in the value of sterling against the euro.

All of these activities have taken place within the framework of existing state Aids rules. I am keeping matters under review to see what further measures might be required, and of course I fully understand and appreciate the impact this is having on the agri food sector and accordingly, I am fully engaged with the Commission and with Member State counterparts to ensure that they are fully apprised of draw attention to the very real risks associated with  Brexit and the resulting currency fluctuations.  

I wish to assure the House that I and the Government remain very focused on supporting the agri-food industry through the challenges ahead. I will continue to consult with the industry as the negotiations develop, and press Ireland's case for continued free access to the UK market, without tariffs and with minimal additional customs and administrative procedures.

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