Written answers

Thursday, 25 May 2023

Department of Agriculture, Food and the Marine

Agriculture Industry

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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226. To ask the Minister for Agriculture, Food and the Marine the way that the Irish dairy industry can invest with confidence, with particular reference to the need to maintain markets; and if he will make a statement on the matter. [25520/23]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I remain confident that the outlook for the Irish dairy industry and Irish dairy exports remains very positive. The dairy industry is one of our largest and most profitable sectors. Irish dairy exports exceeded the €7 billion euro mark last year, making it the largest food and drink export category.

Last year, we exported over 1.6 million tonnes of dairy products to over 130 different countries around the globe. We ship over 85% of our dairy products to the EU and beyond. My Department continues to engage intensively with competent authorities overseas, our Embassy network, Bord Bia and industry, to ensure as many markets as possible are available for a broad and balanced range of dairy products.

Huge progress has been made in the last decade in expanding the reach of Irish agri-food exports to consumers worldwide.

Food Vision 2030 includes several actions to develop overseas market opportunities, and envisages a sustainable increase in the value of overall Irish agri-food exports to €21 billion by 2030, driven by increased value rather than volume.

For an export driven sector like dairy, Ministerial led trade missions to our priority markets are a key part of our market access and diversification strategy. These overseas missions allow me to meet key decision-makers on market access requests, to strengthen commercial relationships with industry customers, and to bolster Ireland’s reputation as a trusted supplier of high quality, safe and sustainable dairy products.

I have just returned from China, and further trade missions are planned later in the year to Africa and South East Asia.

Also essential to the development and maintenance of markets outside the EU is the technical work that frequently takes place behind the scenes. Technical negotiations with importing countries, including inward visits and inspection by their competent authorities, are typically a lengthy and multifaceted process.

Selling into international markets is challenging but developing and diversifying new markets, while maintaining existing markets continues to be a top priority for my Department, in cooperation with Bord Bia.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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227. To ask the Minister for Agriculture, Food and the Marine the extent to which Irish lamb continues to be a major competitor on world markets; and if he will make a statement on the matter. [25521/23]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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Irish sheep farmers produce a sustainable, world-class product as evidenced by the fact that it was exported to more than 30 destination markets in 2022.

According to the CSO, the value of sheepmeat exports in 2022 increased by 17% to reach €453 million while volume rose by 14% to just over 66,300 metric tonnes.

High-value EU markets accounted for approximately 75% of total exports in value and volume terms. France and Germany were the principal EU markets but Sweden, Netherlands, Belgium, Italy and Denmark were also significant outlets for Irish sheepmeat last year.

The United Kingdom remained an important destination market, representing 13% and 16% of exports by value and volume respectively during the period.

International markets – of which Switzerland and Canada were the leading destinations – accounted for around 10% of total exports in value and volume terms.

CSO data for the first quarter of 2023 shows that export volumes were 6% higher and were worth marginally more than for the same period in 2022.

The overall outlook for Irish and EU lamb prices in 2023 is subject to some uncertainties as worldwide supplies are forecast to remain largely unchanged but the consumer response to ongoing inflationary pressure may affect Irish sheepmeat exports during 2023.

Assuming Irish production costs and output prices are relatively stable, market prospects will also be affected by the availability of imported product in the EU and UK markets which is strongly influenced by demand and supply dynamics in the global sheepmeat trade.

As enunciated in the Food Vision 2030 strategy, developing market opportunities at home and abroad remains a priority objective for my Department. Given that the Irish sheep sector is highly dependent on exports, enhancing market access for all product categories in international markets has a carcase balancing function for the processing industry. Generally speaking, the more diversified the trade opportunities available to the sector, the greater the likelihood of securing higher returns for primary producers.

In that context, I continue to support sheepmeat exports through trade mission engagements and my Department's support for Bord Bia’s marketing and promotion activities nationally and internationally.

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