Dáil Éireann debate -
Thursday, 4 Jul 1991

Vol. 410 No. 4

Written Answers. - Decrease in Beef Exports.

Eric J. Byrne

Question:

35 Mr. Byrne asked the Minister for Agriculture and Food if he will outline the reasons for the major decline in Irish beef exports during 1990 highlighted in the recent CBF report; if he plans any initiatives to reverse the decline; and if he will make a statement on the matter.

Minister for Agriculture and Food (Mr. O'Kennedy)

A number of unforeseen circumstances combined to make 1990 a difficult year for the sale of Irish beef in export markets. This included in particular

—a fall in consumer demand in important markets in the UK and the Continent due mainly to the BSE scare in the UK

—the effect of the BSE scare in the UK on many of our valuable third country markets, and

—the closure of the Iraqi market (to which 8 per cent of our total beef exports was sold in 1989) to Irish beef due to the Gulf crisis.

These events occurred in a year in which cattle slaughterings at Irish export plants increased by 19 per cent over the preceding year.

This House will be aware that a major collapse in cattle prices in this country was averted in 1990 due to the operation of the safety net intervention arrangements. A total of 235,000 tonnes of beef were taken into intervention in 1990, and this once again demonstrates the importance of having effective intervention arrangements available to counteract market problems.

Since the onset of the market difficulties last year I have taken a number of steps to rebut disinformation about the health status of Irish beef. In order to assure buyers of the quality and wholesomeness of our beef I have visited a number of our traditional third country markets and my Department have maintained constant contact with the authorities in our export markets as well as keeping Irish embassies fully briefed on the situation. Representatives from a number of countries have visited this country and were reassured by the measures we have in place to deal with BSE. This approach has proved to be successful and a number of our markets have been reopened to our exports. I expect that in the coming months more of our traditional customers will be persuaded to recommence purchasing our beef.

Last year I secured a substantial increase of £250,000 in the grant-in-aid to CBF. I have asked CBF to carry out an aggressive beef promotion campaign in 1991 and I have secured a doubling of the CBF grant-in-aid in 1991 to £1.5 million. I am pleased to say that the meat processors have also agreed to increase their contribution to CBF to match the increased commitment from the Government. This brings the total CBF budget to £7.2 million for 1991 compared to £5.05 million in 1990. CBF have recently introduced a quality assurance scheme for Irish beef and this together with the major promotion campaign should project a very positive image of our beef to consumers.

CBF's promotion campaign in Europe is targeted at the premium end of the market and includes promotion of Irish beef in key retail outlets and at international food fairs. I have been pleased to visit Germany, Italy, Spain and the United Kingdom to support CBF's efforts and to see for myself the encouraging consumer response to the campaign.

A combination of adequate EC support arrangements, an improved market situation and a greatly enhanced promotion effort should lead to a more satisfactory position all round for our beef producers.