Vol. 507 No. 4
6 Mr. Durkan asked the Minister for Agriculture and Food the proposals, if any, he has to extend and expand the number of export oppor tunities for meat products in the future, to include European and worldwide markets; and if he will make a statement on the matter. [16966/99]
The expansion of export markets for Irish food products is primarily the responsibility of the food industry itself, working in conjunction with my Department and An Bord Bia. I see the removal of obstacles to the development of export markets as my function.
The Bord Bia Plan for the period 1999-2006 envisages Irish beef exports to EU markets increasing from 215,000 tonnes in 1998 to 282,000 tonnes by 2006. Implicit in this plan is the recovery of lost trade to the UK and French multiples and the expansion of existing trade to countries like Holland, Italy, Sweden, Belgium, Spain and Germany.
Progress has been achieved in the UK multiple sector and a strong campaign, highlighting the benefits of Irish beef, is being planned by An Bord Bia for later this year to take advantage of the lower beef supplies forecast at that time. Intensive presentations are continuing with the French retail sector but progress there is likely to be slower due to an oversupplied market and strong promotion of domestic French beef. Good progress is taking place in Holland, Italy and Sweden where Irish beef commands a strong position in both retail and food service sectors.
One of the key recommendations in the report of the beef task force is the implementation of An Bord Bia's strategy for export market development and promotion, supported by adequate funding, particularly by way of contribution from producers and processors. I expect this recommendation to be implemented over the coming months. There is a three month time scale for the implementation of the task force recommendations.
As far as the pig meat sector is concerned, it is my objective that the industry should continue to develop by ongoing improvement in standards, further development of its product portfolio and consolidation and increase of its share of the domestic and export market. The support of An Bord Bia through market promotion and through the operation of its quality assurance scheme will contribute to this endeavour. The recently published report of the Food Industry Development Group also outlines the priorities for future investment in the sector.
With regard to the sheep meat sector, the main focus will continue to be on the EU market, which is our main lamb export outlet, and particularly, France, which accounts for almost three quarters of our export sales. Market research in relation to the sale of light lamb will focus on southern European countries including Spain, Portugal and Italy. An Bord Bia will continue to undertake research into the market opportunities in Germany and the Nordic countries, where there would appear to be real possibilities for increasing our sales.
The Department of Agriculture and Food and An Bord Bia will continue to work with the meat industry to identify and exploit opportunities on EU and international markets and I believe that considerable progress can be made in achieving the targets set out in the An Bord Bia plan over the next few years.
I put it to the Minister that the best possible opportunity we have lies in regaining our market share in Europe. Does the Minister agree that the country of origin labelling system, as adopted by some of the continental countries, is working against Ireland to an extreme degree? If so, what has he done at the Council of Ministers to level the playing pitch? I put it to the Minister that some European governments are using the country of origin label to sell their own domestic products as against imported products.
The real difficulties in this regard were created by the 1996 BSE crisis. We are attempting to recover from those difficulties but it is not an easy task and the labelling system is not helping us. We must help ourselves. Deputy Ring hit the nail on the head when he said that perhaps only 20 per cent of our beef is suited to higher retail return from the European market. We need more outlets and better prices for better quality cattle. Price differentials are being introduced; the better the quality of the meat, the better the price we will get for it.
The recent report of the task force pointed to the need for improvement in production methods, AI services and the quality of the national herd. My colleagues and I have visited the UK, France and Germany in an attempt to boost the beef industry. If we can develop the right products for the right markets, we will make inroads into the current difficulties. We need a supply of better quality cattle to be marketed in European outlets which offer a higher return.
In view of the fact that the beef produced from less than one in five Irish cattle is capable of penetrating the lucrative EU market, has the Minister given any consideration to a proposal I made in this House on a number of occasions, namely, that one of the best ways of ensuring the production of well bred, high quality beef progeny lies in an examination of the construction of the current premia system? The system should be changed in order that suckler cow farmers and beef producers would be paid premia to breed from top quality beef breed bulls which would be significantly greater that those for Holstein or Holstein-crossbred beef progeny? Is that not the way forward?
Following the very successful outcome of the recent negotiations on CAP reform, we are now negotiating detailed rules for the reform. Senior departmental officials are participating in special committees in Europe for that purpose. We also have a national envelope and will be able to make some discretionary payments. I will be meeting with the social partners between now and the end of the year to ensure that the best use is made of those payments. Many people are of the opinion that if payments are made on a headage basis, people will receive the same amounts irrespective of quality.
The recommendations emanating from the task force on payment on quality, payment on grading and transparency on the part of factories in order that farmers can have confidence in them is the way forward. That is why I imposed a three month time limit on the implementation of the recommendations.
