Written answers

Wednesday, 8 November 2017

Department of Agriculture, Food and the Marine

Dairy Sector

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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186. To ask the Minister for Agriculture, Food and the Marine the degree to which growth in the dairy sector can continue; the extent to which new markets are being identified and or are identifiable; the progress in relation to such markets; and if he will make a statement on the matter. [47288/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The Deputy will be aware that Ireland’s plans for growth in the dairy sector are formally set out in Food Wise 2025, Ireland’s blueprint for the overall agrifood sector, where an all of sector agreed approach is set out including actions, benchmarks and targets for the dairy and other sectors. Notwithstanding challenges on the horizon, amongst which Brexit is paramount, stakeholders in the Irish dairy sector are well placed to benefit from expanding global demand.

In 2016, Ireland exported in the region of €4bn in dairy products to approaching 130 countries. Against the backdrop of EU agreed trade deals such as those completed with Canada and Japan, 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. Food Wise 2025 outlines the huge potential for growth in agrifood exports to new and emerging markets, particularly in Asia, Africa and the Gulf region. 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.

Most recent CSO data available for the year to end August showed that growth in Irish dairy exports exceed 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 across a range of product categories. This demonstrates that our aforementioned efforts are contributing positively to Irish dairy sector exports.

While global demand for dairy products remains strong, the quality of Irish sourced milk is a key competitive advantage in our promotional efforts in new and existing markets. Investment in research and innovation, improvements in on-farm practices, and the development of added-value products are key priorities for Ireland’s dairy sector. My Department will continue to review opportunities for growth in the sector, in collaboration with industry stakeholders.

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.

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. More recently, in June of this year I led an extensive Trade Mission to the US and Mexico, and will be leading a trade mission to Japan and South Korea later this week.

Such missions serve to enhance and improve our existing levels of market access in these destinations. They also promote Ireland's reputation as a producer of high quality, safe and sustainably produced dairy products.

Ireland is strongly positioned as a competitive producer of dairy. It has enviable natural resources, adaptable and resilient producers, a strong international reputation, an effective dairy processing sector and a strong core of research infrastructure and expertise. My Department and I will continue to work with our partners in the dairy sector and with EU colleagues and international counterparts to ensure the development and maintenance of a sustainable dairy sector in Ireland.

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