Bernard Durkan (Kildare North, Fine Gael)
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508. To ask the Minister for Agriculture, Food and the Marine the degree to which the poultry sector here is set to compete with or gain from issues arising from Brexit; and if he will make a statement on the matter. [7455/18]

Michael Creed (Cork North West, Fine Gael)
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Brexit, no matter what format it takes, will have an impact on Irish agriculture across all sectors by virtue of their exposure to the UK market. It does not provide any upside for Irish agriculture, and it is for this reason that I will continue to be firm in arguing that any agreement reached between the EU and the UK must allow for continued free access to the UK market, without tariffs, with minimal additional customs and administrative procedures, as well as a minimisation of the risk from UK trade agreements with third countries.

The agri-food sector is of critical importance to the Irish economy in that its regional spread means it underpins the socio-economic development of rural Ireland in particular.

While the most immediate impact of Brexit has been the difficulties caused by the significant drop in the value of sterling against the euro, the anticipated longer-term challenges will arise in relation to regulations and standards (in the event that there is no agreement on transition arrangements or the finalisation of a framework for the future relationship), export certification (including animal and plant health certification) and tariffs (in a hard Brexit scenario food exports could in theory face very high WTO tariffs, for example of over 50% for dairy and over 60% for beef. Tariffs for exports in certain poultry products could exceed these levels).

The overall value of Irish poultry exports have increased by around 3 percent for 2017 to €295 million in value, with volumes only rising by 1 percent during the same period. The number of poultry birds processed in Ireland reached record levels at 96m birds. During the same period Irish imports decreased by 7 percent reflecting increased preference for Irish product in the food service channel. The great majority of Irish poultry exports continue to go to the UK which records almost 80 percent market share for 2017 or some €240m. The share of Irish poultry exports going to other EU markets has edged upwards to 10 percent, with France maintaining its position as the most important market especially for leg meat that is not consumed on the home market. Increasing market access is a key priority for the sector and will support further export reach. Some recent developments to open trade could lead to new opportunities, such as the EU-Japan free trade agreement.