While the number of cattle to be shipped before 31 December 1998 is a commercial decision between the live exporters involved and the Libyan authorities, I expect that a significant number of live cattle will be exported to Libya before the end of the year. I am confident adequate shipping capacity is available for cattle exports to the Libyan market. There are currently some ten dedicated livestock vessels approved for the export of cattle from Ireland, with two additional vessels under consideration. Further vessel inspections are due to take place in the next couple of weeks.
The resumption of the live trade to Libya, combined with the substantial increase in export refunds on cattle and beef which was agreed by the beef management committee on 26 September, will improve the competitiveness of Irish cattle and beef exports on third country markets and should enable our processors to pay higher prices for cattle to our producers. The Minister is at present in Iran, with a view to securing the lifting of the BSE-related ban.
Clearly, the difficulties in the Russian market have had a serious impact on the Irish beef industry. In view of this, the Minister has asked the Commission to introduce an EU-sponsored export credit insurance scheme in order to encourage European exporters to resume exports to Russia. The introduction of such a scheme, combined with the increase in export refunds, would facilitate an orderly commercial export trade in that market.
As far as the sheep trade is concerned, the Minister attended an An Bord Bia promotion of lamb in Madrid recently. A vessel has also been approved for a trial shipment of lamb to the continent. The recent introduction of an aids to private storage scheme for lamb should help to underpin the autumn lamb market.
With regard to pigmeat, I have taken steps to ensure traders will be able to compete on world markets and to exploit every export opportunity. Earlier in the summer I sought and received increased export refunds from the EU Commission. In May, export refunds were introduced and in August they were further increased. In view of the continued weakness in the export market, in particular in the Russian market, I raised the question of a further increase last week at the Agriculture Council.
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I have also been successful in getting the Commission to agree to an aids to private storage scheme to support the market at this time. The scheme, which is effective from 28 September, provides EU funding for the storage of up to 70,000 tonnes of pigmeat, destined for export to third countries, for up to six months prior to shipment. The scheme not only allows exporters time to find a market for their produce but also entitles them to export refunds.
With regard to the recent sale of 10,000 tonnes of intervention beef to Russia, this was part of an intervention destocking programme which the European Commission embarked upon earlier this year before the onset of the Russian crisis. My understanding is that in deciding to proceed with the sale to Russia the Commission took the view that, since the Russian market was effectively closed for the present to commercial exports, the sale of intervention beef would not be displacing commercial trade. It has been strongly emphasised to the EU Commission that the sale of intervention beef should not undermine the existing commercial trading structures which have been built up in recent years, and that an ultra-cautious approach towards the disposal of intervention stocks should be pursued at this time.
