Written answers

Thursday, 21 October 2021

Department of Agriculture, Food and the Marine

Agriculture Industry

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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378. To ask the Minister for Agriculture, Food and the Marine the extent to which the level of beef production continues here; if he is satisfied regarding the future of the industry; and if he will make a statement on the matter. [51923/21]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I am very aware of the contribution of the beef sector to Irish agri-food as a whole, supporting significant levels of direct employment as well as their role in supporting rural economies and the wider national economy.  It is a sector that I support and will continue to support into the future.

The Department continues to prioritise supporting the sustainable development of this sector including through targeted supports aimed at supporting primary producers to increase the environmental and economic efficiency of their operations.

Over the five years from 2016 - 2020, annual beef production averaged 1.73 million head with a coefficient of variation of 0.03 during that period indicating very stable production levels. Beef worth over €2.3 billion and just short of 518,000 tonnes was exported in 2020, this represented a decrease in both value and volume of just2% on the previous year despite the unprecedented difficulties which prevailed.

Slaughter reached almost 1.8 million head in 2020 which was a 2.6% increase on 2019 figures. The average price for R3 Steers in 2020 was 362.73c/kg (excl VAT), which represented a 1% increase on the previous year.

Supporting the economic, social and environmental sustainability of the Irish agri-food sector is a fundamental theme of the new Food Vision 2030 stakeholder-led strategy for the future of the sector, and will also underpin the development of my Department's supports under the next Common Agricultural Policy. 

Ultimately, I want to ensure that, as a priority, we protect the incomes of our primary producers who are the bedrock our sector as well as protecting the environment.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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379. To ask the Minister for Agriculture, Food and the Marine the extent to which the level of dairy production here continues to be stable into the future notwithstanding any restrictions by way of carbon reduction; and if he will make a statement on the matter. [51924/21]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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The Climate Action and Low Carbon Development (Amendment) Act will support Ireland’s transition to Net Zero and achieve a climate neutral economy by no later than 2050.

The Act commits our economy to an ambitious and challenging 51% reduction in GHG emissions by 2030 with specific regards to the special economic and social role of agriculture, including regarding the distinct characteristics of biogenic methane.

 Agriculture must do its fair share and absolute emissions from the sector must fall over the years ahead.  

Food Vision 2030, the new stakeholder-led ten-year strategy for the Irish agri-food sector, demonstrates our commitment to establishing Ireland as an international leader in Sustainable Food Systems. Ireland must adopt this systematic approach to ensure a climate smart, environmentally sustainable agri-food sector into the future, to achieve our goal of a climate-neutral agri-food system by 2050.

AgClimatise, our National Roadmap towards Climate Neutrality for the Agriculture Sector, to be implemented under the Strategy, sets us on a path to developing a climate neutral food system compatible with the Paris Agreement temperature goals by 2050, whereby the climate impact of biogenic methane is reduced to zero and remaining agricultural emissions are balanced by removals through land use and a significant contribution to renewable energy.

While the national herd has remained relatively stable in recent years, dairy cow numbers are now 49% higher than in 2010, exceeding 1.6 million in 2021 according to the CSO Provisional June livestock survey. An increase in biogenic methane emissions from increasing livestock numbers will compromise the objective of achieving a climate-neutral agri-food sector by 2050.

Therefore, stabilising the national herd number will be necessary to achieve our emissions reduction targets. It is important to emphasise, however, that stabilising the national herd is just one contributory factor to mitigating Greenhouse Gas and ammonia emissions.

Under the guidance of FoodVision 2030, detailed plans will be produced to manage the sustainable environmental footprint of the dairy sector, as well as the beef sector.  Ireland’s new CAP Strategic Plan (2023-2027) will provide incentives which underpin the sustainable development of the agri-food sector, providing appropriate supports to primary producers in leading the implementation of environment and climate objectives.

Amongst these supports, Targeted Agriculture Modernisations Schemes (TAMS) will provide ongoing financial supports, while breeding technologies will play a key role in reducing the carbon footprint of livestock sector. 

In addition, both I and the Department will continue to promote the development of a competitive dairy sector, which facilitates trade in dairy products, and maximises market access opportunities and scope for product and market diversification.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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380. To ask the Minister for Agriculture, Food and the Marine the extent to which the future for Irish lamb remains attractive in both the export and domestic markets; and if he will make a statement on the matter. [51925/21]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I am very conscious of the important role that the sheep sector plays in the continued growth and development of our agri-food sector, and its valuable contribution to the rural economy.

The strong performance of the sector in 2020 has continued into 2021 and I am delighted that farmers are being rewarded from the market for their hard work. Reductions in production globally and increased demand are expected to support continued strong performance throughout 2021. The current average price is €6.13 per kg, which is 25% above the same period last year. 

Bord Bia analysis suggests that retail demand for sheepmeat increased over the last year, as consumers invested more time in preparing home-cooked meals.  In 2020, according to CSO data, 73% of sheepmeat products in value terms were exported to the EU, 12% to the UK and 15% to other third country markets. The value of sheepmeat exports to international markets increased significantly in  2020, but France remains the single most important export destination, accounting for a third of Irish sheepmeat exports in 2020.

In relation to the future prospects for Irish sheepmeat exports, the fundamentals are strong. According to the CSO, 2020 was a prosperous year for Ireland's overseas sheepmeat trade, with 64,000 tonnes exported to 38 international markets at a value of nearly €356 million. This represents an increase of 12% in value terms on 2019.

As with other meat commodities, my officials continue to work towards opening new outlets for sheepmeat and enhancing existing access to as many markets as possible for Irish sheepmeat. The Irish food industry is well positioned to gain from the opportunities presented by expanding global demand for high-quality Irish lamb, underpinned by the market development efforts of the Department, Bord Bia, the Irish embassy network, and the food industry.

I recently signed and exchanged formal protocols with the General Administration of Customs of China (GACC) that will pave the way for the export of sheepmeat from Ireland to China. This represents an important milestone in gaining access to the Chinese market.

My Department will continue to engage with stakeholders on maximising potential opportunities for Irish sheepmeat exports. I will continue to back and support our sheep farmers.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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381. To ask the Minister for Agriculture, Food and the Marine the extent to which the future for Irish pig meat remains attractive in both the export and domestic markets; and if he will make a statement on the matter. [51926/21]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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The pigmeat sector has shown remarkable growth in recent years, over the last decade exports have grown substantially from a base of €330 million export value in 2010 to €893 million in 2020, a 170% increase.

Over 87,000 tonnes of pigmeat exports valued at over €406 million were exported to the UK in 2020. This represents almost 45.5% of total export value for the sector. 

However, third country markets, which have been steadily expanding in recent years, rose to 37.24% of total share in 2020.

This is illustrated by the significant expansion in Ireland’s pig meat exports to Asia, and to China in particular, where values grew by €24.6 million in 2020 (a 14% increase on 2019) nearing €200m for the year and growth of over 160% when compared to 2018. The EU accounted for 17.2% of export totals.

Irish pigmeat can be exported to a broad range of international markets including, Australia, Canada, China, Japan, South Korea, and the USA. Securing market access and diversifying trade remains a key aim for my Department.

The short-term outlook for the pigmeat market will be influenced by global supply and demand dynamics as well as by potential disruptions to supply chains.

Ensuring the continued operation of Irish food supply chains and expanding market access remain key priorities for my Department.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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382. To ask the Minister for Agriculture, Food and the Marine the degree to which the future for the poultry sector continues to remain positive notwithstanding the impact of Brexit, Covid-19 and any climate change restrictions; and if he will make a statement on the matter. [51927/21]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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As a value-for-money source of protein-rich food, poultrymeat has seen an increase in demand in recent years. Irish production hit record levels in 2020, with a grand total of 111 million birds slaughtered (92% of which were chickens) in Department approved establishments.

Currently 2021 is trending in a positive direction, with slaughter up 2.6%  on the same period in 2020 with throughout standing at over 84.4 million.

In addition, prices for poultry meat have remained relatively stable and prices at end of August 2021 for poultry meat were €2.15 per kg, a 6c/kg increase on the same period of 2020.

At a domestic level, reductions at food service level appear to have been compensated for by increased demand at retail level.

However, the value of poultry meat exports for 2020 decreased by 12.1% on 2019 to just under €256 million with the effect of falling food service demand in international markets a major factor.

Changes to global supply patterns and the repercussions of the COVID-19 pandemic saw a decrease in the value of exports, as well as a decrease in the tonnage for 2021, coming in at €138.15 million and 55,796 tonnes respectively as of August YTD.  However, poultry meat retains a positive perception amongst consumers.

In terms of environmental regulations, compliance with such regulations is a prerequisite for Irish farmers and food producers, not only to meet legislative requirements, but also to ensure that our quality produce can command a premium in both domestic and export markets. 

This approach is at the heart of the new stakeholder-led strategy for the sustainable development of the sector over the next decade: 'Food Vision 2030 - a world leader in sustainable food systems'.

As in other meat sectors, global trade conditions will be crucial in determining the outlook for the Irish poultry sector over the medium to longer term.

While the outlook for the sector remains broadly positive, the sector continues to face challenges including the ongoing uncertainty around Covid-19 and Brexit. Ensuring the continued operation of Irish food supply chains and expanding market access remain key priorities for my Department.  

My Department will continue to monitor the markets and any impacts on the agri-food sector.

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