Vol. 420 No. 5
9 Mr. Durkan asked the Minister for Agriculture and Food if he will outline the extent to which he expects Irish food products to improve market penetration in EC and other countries in the future having regard to world trade trends; and if he will make a statement on the matter.
(Wexford): The value of Irish food exports has grown by almost £1 billion since 1985. This level of performance has been based largely on the ability of our food companies to compete in areas such as price, quality and reliability. These factors will determine the extent to which existing markets can be further developed and new markets prised open; in addition the introduction of the Single Market, and also the shift in emphasis away from EC market supports such as intervention under Common Agricultural Policy reform, should provide our companies with new opportunities within the EC provided they devote sufficient attention to quality. Food companies will continue to be supported in their efforts to develop EC markets by Government through the relevant State agencies.
Has the Minister taken into account the possibility of competition within the EC market place from other agricultural countries in his calculations?
(Wexford): We have taken competition in the EC into account. There has been a great deal of structural change and streamlining in the industry. Much of this was facilitated by FEOGA grants and from substantial capital grants from the IDA. In the three years from 1989 to 1991 about £113 million was invested to which FEOGA contributed £44 million, and national aid £20 million. We recognise the importance of developing the food industry. As the Minister, Deputy Walsh, said earlier, he was in discussions with the new 15-man committee set up to develop and promote the food industry. We are capable of competing and selling our quality products on the EC market.
Do the Government intend to enter into negotiations with some of the main co-ops to develop new brands which might penetrate the European market? If so, is the Minister in favour of providing matching funds, pound for pound, to develop such new brands?
(Wexford): We are prepared to look at all options in developing the food industry's potential within the UK and EC markets. Irish food companies, notably Avonmore, the Kerry Group and Waterford Foods, have made strategic acquisitions in our major export markets as a means of enhancing market access. Linkages and licence agreements with European and US firms have been entered into which bring many of the benefits of size without having to move to levels of concentration common elsewhere within the EC. This Department will not be found wanting if companies want to develop and expand to meet the challenges within the EC.
Would the Minister be in favour of using any future funds that may become available through the sale of assets of food companies such as Greencore to penetrate markets in conjunction with successful companies? Has the Minister an opinion on that and is he prepared to say that this money should be used for re-investment in the development of markets?
(Wexford): That is a separate question. If the Deputy puts down a question on this matter, we will answer it.
The Minister, Deputy Walsh, gave a side kick to the Minister of State not to answer it and to avoid the issue.
Can the Minister confirm the extent to which he has evaluated the impact of the US in the food and agricultural produce area of our marketplace in the next five or six years?
(Wexford): A number of our processing companies have acquired US standards of hygiene and quality and it is up to those companies to develop markets within the United States. The Department will give them full support and some help.
The Minister should bring in his crystal ball.
