Written answers

Wednesday, 20 February 2019

Department of Agriculture, Food and the Marine

Beef Exports

Photo of Carol NolanCarol Nolan (Offaly, Independent)
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189. To ask the Minister for Agriculture, Food and the Marine the actions he has taken to ensure that beef holds its position in the UK market in view of the fact that there is no comparable, alternative market with the onset of Brexit; and if he will make a statement on the matter. [8659/19]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The UK is Ireland’s largest export destination for beef exports. In 2018, beef exports were valued at €2,439m and exports to the UK were valued at €1,206m, which is 49.4% of beef exports.

Retention of the UK market for the beef industry is a key component of the Government's response to Brexit.

I have provided a total of €19.5m to Bord Bia since the UK referendum. This additional funding is being used, among other things, to provide direct support and advice to individual companies in relation to maintaining customer relationships in the UK.

In addition, I have met with the chief executives of the major British retailers to impress upon them the commitment of Irish suppliers in continuing to supply the UK market post-Brexit.

More generally, the pursuit and development of new markets for Irish agri-food exports, including beef exports, is 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 years.

I and my officials have also been working very hard for quite some time to sensitise other Member States and the European Commission to the potentially very severe impacts of Brexit on the Irish beef and other sectors, and to the likelihood of specific supports being required in order to deal with these impacts. The institutions of the European Commission are very well aware of the likelihood of a significant impact of a disorderly Brexit on Ireland’s economy because this has been part of the discussion from the beginning, and indeed this is explicitly recognised in the Commission’s own communication on contingency planning.

More recently, I held a bilateral meeting with Commissioner Hogan at the end of January to discuss the potential impact of a disorderly Brexit. We discussed the unique exposure of sectors such as the beef sector to the threat of a disorderly Brexit, and the challenges that it could present. I stress the need to be ready to deploy a range of measures to mitigate the potential impacts on farmers and processors, including through traditional market supports and exceptional aid under the CAP’s Single Common Market Organisation regulation, and increased flexibility under State Aid regulations. Commissioner Hogan reiterated the EU’s readiness to respond and support Ireland. Subsequently there was a meeting between officials to explore possible support measures that may be required in the event of no deal Brexit on 29 March 2019. The officials will remain in contact on these issues as the situation evolves.

In addition, I have introduced a range of measures to help these sectors to deal with the impacts of Brexit –

- In Budget 2017, a farm-gate business costs reduction measure in order to enhance competitiveness, including a €150m low-cost loan scheme;

- In Budget 2018, a €50m, dedicated Brexit package which included a contribution to a €300m (joint DAFM/DBEI) “Brexit Loan Scheme”, at least 40% of which is available to food businesses.

- In Budget 2019, a €78m Brexit package for farmers, fishermen, food SMEs and to cover additional costs related to Brexit.

My colleague, Minister for finance Paschal Donohoe, also announced the Future Growth Loan Scheme, which will be rolled out in 2019 and for which I had made provision of €25m in 2018. The scheme will provide long term, unsecured investment finance for farmers and small scale companies in the food and seafood sectors.

I wish to assure the Deputy that the Government remains very focused on supporting the agri-food industry, including the beef industry, through the challenges ahead.

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