Written answers

Thursday, 26 April 2018

Department of Agriculture, Food and the Marine

Food Exports to China

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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14. To ask the Minister for Agriculture, Food and the Marine the value of agrifood exports to China; the expected growth in same following the opening of the Chinese market for Irish beef; and if he will make a statement on the matter. [18307/18]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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My officials continue to work towards opening and enhancing access to as many markets as possible. This is a key part of our response to the challenges and uncertainty posed by Brexit, and in line with the market development theme of the Food Wise 2025 strategy. A wide range of staff across my Department are involved in market access work which is co-ordinated by an internal High-Level Market Access Committee, chaired at Assistant Secretary General level.

Total Irish agri-food trade exports to China (including Hong Kong and Macao) were €974 million in 2017. China is now our third largest market overall for agri-food exports. Dairy exports reached €667 million and pigmeat exports were over €100 million in 2017. These were the two largest categories of food exported to China, and for both of these commodities China was Ireland's second largest destination market according to the Central Statistics Office (CSO) trade data. China is also a growing market for seafood and other food and drink exports.

By gaining access to China, we have now opened a very significant beef market for Irish beef companies. However, I cannot comment on the expected growth or the precise value of exports. The role of the Government is to open up access to new markets, in line with our Foodwise 2025 strategy, and to maintain access to existing markets. It is now up to our beef companies to avail of this opportunity. I hope that they will follow the success that our exporters have already had in finding Chinese markets for dairy, pigmeat and seafood products.

On average Chinese beef consumption is now 4kg per person per year. That may be considered low when compared to average Irish consumption of 19kg of beef per capita per year, and compared to average consumption in other Asian markets such as Japan (almost 7kg) and South Korea (almost 10 kg). However, that just underlines the potential for further growth in consumer demand for beef, driven by increasing urbanisation, higher disposable incomes and health awareness.

Total beef imports to China were around 600,000 tonnes in 2016. That is more than Ireland’s total beef exports to all markets last year. I firmly believe that our beef industry can and will compete effectively in the Chinese market and I look forward to the opportunities that this access will bring.

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)
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15. To ask the Minister for Agriculture, Food and the Marine when trade will commence following the announcement that the Chinese beef market will open to exports from Ireland. [18276/18]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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My officials continue to work towards opening and enhancing access to as many markets as possible. This is a key part of our response to the challenges and uncertainty posed by Brexit, and in line with the market development theme of the Food Wise 2025 strategy. A wide range of staff across my Department are involved in market access work which is co-ordinated by an internal High-Level Market Access Committee, chaired at Assistant Secretary General level.

The recent opening of the Chinese beef market to Irish beef is hugely significant for the Irish beef industry, all along the chain from farmers through to processors and exporters. It marks the culmination of a number of years work involving my Department, the Irish Embassy in Beijing and with the close co-operation of the Chinese Ambassador in Dublin and his Embassy staff, Bord Bia, and the industry itself.

The BSE ban was lifted for Irish beef by the Chinese authorities in 2015 and a successful AQSIQ inspection visit, focused on competent authority systems, followed in 2016. Following this, I signed a protocol on the export of frozen beef from Ireland to China with the AQSIQ Minister Zhi Shuping in Dublin in April 2017. The next step was a Certification and Accreditation Administration of the People’s Republic of China (CNCA) inspection in August/September 2017 to assess individual processing plants.

The final report of the CNCA Inspection issued in March 2018 and following intensive negotiations between Irish and Chinese officials on a number of issues, I was pleased to announce the opening of the market last week, initially for three plants.

There remain a number of technicalities to be finalised now that these initial plant approvals have been granted. However, my Department has, in conjunction with industry, been working for sometime towards ensuring that trade with China can commence and run smoothly. This includes amendments to IT systems and an SI to allow access to information. These are due to be finalised in a matter of weeks. In addition the approved plants will have to deal with their own technicalities including testing requirements.

While I expect that the trade will commence this summer; it is of course a matter for industry to decide how and when to pursue the opportunities offered. The role of my Department is to open the door to allow trade to commence. Next month I will lead a Government agri-food trade mission to China and Hong Kong. The timing of this Trade Mission is particularly opportune, given the recent progress on access.

Photo of Peter FitzpatrickPeter Fitzpatrick (Louth, Fine Gael)
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16. To ask the Minister for Agriculture, Food and the Marine his views on the significance of the opening of the Chinese market to Irish beef, particularly in the context of Brexit; and if he will make a statement on the matter. [18266/18]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The recent opening of the Chinese beef market to Irish beef is hugely significant for the Irish beef industry, all along the chain from farmers through to processors and exporters. It marks the culmination of a number of years work involving my Department, the Irish Embassy in Beijing and with the close co-operation of the Chinese Ambassador in Dublin and his Embassy staff, Bord Bia, and the industry itself.

My Department has developed a deep understanding of Chinese requirements based on a series of inward and outward trade missions, inspection visits and bilateral contacts between the relevant officials.

However, I am not going to put a figure on how much beef Ireland will export to China. The role of my Department is to open the door to allow trade to commence. I hope that Irish beef companies will follow the success we have already had in finding Chinese markets for dairy, pigmeat and seafood products. Trade in these commodities has developed over the years from a low base. Dairy exports to China reached €667 million and pigmeat exports were over €100 million in 2017. For both of these commodities China was our second largest export destination after the United Kingdom

Within the last 30 years Chinese demand for meat has quadrupled, and the country now consumes one quarter of the world’s meat supply. Total beef imports to China were around 600,000 tonnes in 2016. That is more than Ireland’s total beef exports to all markets last year (550,000 tonnes).

There is an estimated middle class in China of around 300 million people and a rising demand for meat. In particular, there is potential for further growth in consumer demand for beef, driven by increasing urbanisation, higher disposable incomes and health awareness.

My officials continue to work towards opening and enhancing access to as many markets as possible. This is a key part of our response to the challenges and uncertainty posed by Brexit, and in line with the market development theme of the Food Wise 2025 strategy. A wide range of staff across my Department are involved in market access work which is co-ordinated by an internal High-Level Market Access Committee, chaired at Assistant Secretary General level.

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