Written answers

Tuesday, 3 October 2017

Department of Agriculture, Food and the Marine

Food Exports

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

471. To ask the Minister for Agriculture, Food and the Marine the extent to which he can assist those exporters in the food sector that have been negatively affected by issues associated with Brexit with particular reference to access to the UK market; and if he will make a statement on the matter. [41940/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

There is no doubt that Brexit poses enormous challenges for the agri food sector by virtue of its reliance on the UK market. The most immediate challenge has been the impact caused by the significant drop in the value of sterling against the euro, and I fully understand and appreciate the impact this is having on the agri food sector.

The sector is of critical importance to our economy given its regional spread and the fact that it underpins the socio-economic development of rural areas in particular. I am determined to safeguard its interests.

In order to assist those exporters who have strong trading relationships in the UK I have actively supported Bord Bia, our food marketing Agency, in their marketing strategy. I have done this by allocating €3.6m to them in the last Budget 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.

It is critical at this time to work towards reducing our dependence on UK markets for our agri products, while at the same time retaining our market share in the UK.

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 them the value of their trade to the Irish agri food sector. Next month I will lead a further Trade Mission to South East Asia, this time to Japan and the Republic of Korea where I, along with Bord Bia, hope to enhance existing markets and develop new markets.

However, the scale of the difficulties being created by the current period of exchange volatility requires that other approaches be considered. Accordingly, will be keeping developments under close review and adapting State support mechanisms as necessary.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

472. To ask the Minister for Agriculture, Food and the Marine the extent to which new markets are being located for Irish food exports in view of the need to replace losses arising from currency or Brexit-associated issues; and if he will make a statement on the matter. [41941/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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, with Bord Bia, led a 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.

Most recently, in June of this year I led an extensive Trade Mission to the US and Mexico. Both markets offer many aspects that are very attractive to Irish exporters. The US is the largest food and beverage market in the world and has a population of 324 million people. Around 35 million Americans also claim Irish ancestry. Mexico has a population of 127 million, making it the eleventh-largest country in the world in population terms and the fifteenth-largest economy in the world, with projections that it will move into the top five by 2050.

My Department is currently making arrangements with Bord Bia and Enterprise Ireland for a forthcoming trade mission in November to Japan and South Korea. Again this will include participants from across the agri-food sector and will feature extensive trade contacts as well as high level political discussions. Both of these markets had been identified by my Department as offering huge potential to the Irish agri-food sector.

This and the other missions that my Department are planning for 2017 and early 2018 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. My Department will continue to seek out and identify new markets and I am ready to respond as appropriate to other opportunities that may arise.

I also recently announced additional market access resources in my Department in order to further support its efforts to increase the Irish footprint globally.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

473. To ask the Minister for Agriculture, Food and the Marine the number of new markets identified for Irish food exporters in the past two years; and if he will make a statement on the matter. [41942/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The past 2 years has seen great strides taken in regard to the opening of new markets and the deepening of trade for existing markets for Irish Agri food exporters.

In 2015 we gained access to the US market for Irish beef. In the same year we also got access to the Canadian market for Irish beef and to the Omani market for Irish beef and sheepmeat. In 2016 we gained access to the Maldives for beef, sheepmeat, pigmeat and poultrymeat. We also gained access to the Iranian market for sheepmeat and we regained access to the Israeli market for beef. In 2017, the market in Egypt was re-opened to exports of beef from Ireland and we got access to the Chilean market for Irish pork.

On the dairy front, Ireland exported in the region of €4bn in dairy products to approaching 130 countries in 2016. Against the backdrop of EU agreed trade deals such as those completed with Canada and Japan, which will obviously have benefit for the sector, my Department continues to prioritise efforts to gain access to new 3rd country markets and, equally importantly, to deepen existing markets for Irish dairy products. In many instances such efforts are on foot of trade missions at Ministerial level. In addition, against the background of Brexit, I have asked Bord Bia to conduct market profiling exercise to identify opportunities in new and more mature markets, and the output of this exercise will provide valuable market intelligence both for industry operators and policy makers.

CSO data for the year to end June showed that Irish dairy exports were approaching 20% ahead of the same period in 2016, on foot of factors such as improving global prices, particularly evident in sectors such as butter, but also increases in volumes exported also across a range of product categories. This demonstrates that our aforementioned efforts are contributing positively to Irish dairy sector exports.

This however does not reflect the increased growth in exports to the following markets:

The value of exports to emerging markets in Asia, Africa, the Middle East and Central/South America stood at almost €2.2 billion in 2016. The value of trade to these markets increased by 52% in the period 2012 to 2016. Exports to these markets now account for 19% of total food and drink exports compared to 16% in 2012. This growth in share of exports occurred during a period when total food and drink exports jumped by more than 23%.

Growth to emerging markets has been led by Asia, with trade growing by more than 150% to €1.2bn, and led by China, which recorded a more than three-fold increase (Total €880m v €283m in 2012). Exports to other Asian markets grew by 73% in the same period to €318 million.

Trade to Africa has maintained around the €500m during this period notwithstanding the challenges faced by those West African countries whose economies are so reliant on a strong international oil price. Encouragingly, exports to North African countries grew by just under 50% in 5 years helping to counterbalance this impact.

Exports to the Middle East grew by 21%, to €370 million.

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. 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 2016 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.

Most recently, in June of this year I led an extensive Trade Mission to the US and Mexico. Both markets offer many aspects that are very attractive to Irish exporters. The US is the largest food and beverage market in the world and has a population of 324 million people. Around 35 million Americans also claim Irish ancestry. Mexico has a population of 127 million, making it the eleventh-largest country in the world in population terms and the fifteenth-largest economy in the world, with projections that it will move into the top five by 2050.

My Department is currently making arrangements with Bord Bia and Enterprise Ireland for a trade mission to Japan and South Korea in November. Again this will include participants from across the agri-food sector and will feature extensive trade contacts as well as high level political discussions. Both of these markets had been identified by my Department as offering huge potential to the Irish agri-food sector.

This and the other missions that my Department are planning for 2017 and early 2018 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. My Department will continue to seek out and identify new markets and I am ready to respond as appropriate to other opportunities that may arise.

I also recently announced additional market access resources in my Department in order to further support its efforts to increase the Irish footprint globally.

Comments

No comments

Log in or join to post a public comment.