Written answers

Thursday, 10 February 2022

Department of Agriculture, Food and the Marine

Agriculture Industry

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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180. To ask the Minister for Agriculture, Food and the Marine the extent to which he remains satisfied that the future of the beef, pig meat and lamb sectors remain secure notwithstanding the various issues arising; and if he will make a statement on the matter. [7051/22]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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While slaughter levels were slightly down for both beef and sheep in 2021, prices were significantly up on the previous year. Both sectors also saw an increase in the value of exports.

For beef, the total annual slaughter figure at the end of 2021 was 1.66 million head which represents a 5% decrease on 2020 levels of 1.75 million head. This was in line with the projection of tightening supplies at the start of year. The average 2021 R3 Steer price of 407.95c/kg was 12.5% above the 2020 average price of 362.71c/kg.

CSO data to the end of November 2021 shows an increase in value of beef exports by 5.7% (compared to the same period in 2020) to €2.1 billion in spite of a reduction in volume of 11.7% in the same period. This growth was underpinned by sustained strong demand in the UK and the EU.

Teagasc forecast that EU beef supply will decline in 2022 and that UK supply will remain unchanged. The outlook for Irish beef exports to EU27 and the UK remains generally positive for 2022 according to Bord Bia. Global market demand seems set to remain good as global supplies look to be tight as result of pressure on output from both North and South America.

For sheep, total slaughtering for 2021 was 5% down on 2020 at 2,720,467 head. The average 2021 price of 664.49c/kg was 28% above the 2020 average price of 519.27c/kg. Tighter global and EU supplies of sheepmeat, combined with firm demand, resulted in a positive market for Irish sheep­meat during 2021. According to CSO data, the value of sheepmeat exports increased strongly for the second consecutive year, rising by 7.4% (compared to the same period in 2020) in the period up to the end of November to reach €347 million. This was despite a drop of 9.8% in export volumes over the same period.

The reduced availability of imported sheepmeat on the EU market, due to a reduction in UK production, had a positive impact on the demand and opportunities for Irish sheepmeat. Tighter global supplies of sheep­meat and the redistribution of global supplies have helped drive higher export values for Irish exporters and these trends seem set to continue in 2022.

For the pig sector, 2021 saw an increase in throughput levels on 2020 of 3%, with the total pigs slaughtered for the year, coming in at just over 3.6 million head (3,615,320). Over the past five year period there has been growth of 11.5% in production, equalling 374,138 pigs. According to data supplied by the Central Statistics Office (CSO), as of November 2021 YTD there has been an increase of 4.8% in exports over 2020 in value terms (+€38.8m) and an increase of 5.7% in volume, coming in at an estimated €845.7 million and 264,869 tonnes respectively.

However, the average price for 2021 is 8.7% lower than 2020. While prices were at a historical high coming into 2020, the average 2021 price is marginally lower than that of the 5-year average price of 157.51 €/100kg. This reduction in price has occurred in tandem with an increase in input costs causing serious difficulty for the sector. My officials are continuing to monitor the current market situation and are exploring all potential options available at EU and national level to assist in supporting Irish pig farmers through this significant market disturbance.

In line with our overall strategy for the agrifood sector, securing market access and diversifying trade remains a key aim for my Department, which is prioritising work on retaining and enhancing existing market access, and expanding market access to new destinations for all commodities.

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