Vol. 521 No. 2
30 Mr. Sheehan asked the Minister for the Marine and Natural Resources the information gathered by a delegation, headed by the Minister of State, Deputy Byrne, which went to Chile on a fact finding mission on the salmon farming industry; and the way in which these ideas will further the development of the salmon farming industry in Ireland. [12685/00]
Irish farmed salmon is already a recognised quality product with a competitive edge in the marketplace. The challenge now is to build on the potential for sustainable expansion of the sector. The Minister of State headed the fact finding mission to Chile last year to assess the progress made there in the salmon farming sector. The Chilean salmonid farming industry has many similarities with the Irish industry and produces Atlantic salmon, Pacific salmon and rainbow trout. The salmon industry in Chile is a relative newcomer but in just ten years its production levels have increased dramatically and Chilean production is now second only to Norway. Total salmon production reached 215,000 tonnes last year and output is largely exported to the US and Japan.
The Irish salmon farming industry produces around 18,000 tonnes valued at £46 million with 75% of production exported to EU and international markets. The visit entailed a wide-ranging assessment of all stages of the Chilean salmon farming industry, as well as the policy, regulatory and research frameworks. The objective was to gain an understanding of the key success factors in the rapid sustainable development of aquaculture in Chile and to see whether that experience can be applied in the Irish context.
The Irish delegation visited coastal communities where salmon farming has transformed areas of high unemployment with jobs and growth. The Minister of State, Deputy Byrne, also had detailed discussions with his Chilean counterpart and with key players in the industry. There are well established links between the Irish and Chilean industry with significant salmon ova export trade to Chile from Ireland. Salmon cages have also been designed and manufactured in Chile under licence from an Irish company.
Salmon processing plants were particularly interesting. A key feature of Chilean production is the level of value added achieved. Most of our farmed salmon is exported in whole or nearly whole form. The Chileans by contrast, who are geographically remote from their main markets in the USA, Japan and Asia, market their fish as added value fillets, steaks and other cuts of frozen and fresh fish. More than 15% of its salmon is exported in value added forms which allow for higher economic returns. While the whole fresh market will continue to be a vitally important one for Irish producers, opportunities for expanding the value added side must be systematically developed and we can learn from Chile in this regard.
Backed up by significant funding support under the national development plan, a new strategic framework for aquaculture development is being put in place. The Circa report into the future of Irish aquaculture which was launched last week provides the basis for these new directions. The strategic objectives are to achieve critical mass and increase value added in production, diversification into new species, best practice in line with stringent environmental guidelines and high standards of quality assurance. These will be critical to Irish success in the highly competitive market for top quality seafood products worldwide.
While I congratulate the Minister on his exotic trips to Chile on behalf of the salmon farming sector and to New Zealand on behalf of the mussel farming sector, I still cannot comprehend what effect they will have on either sector. We are surrounded by the north Atlantic in which the quality of fish is unique. The quality of fish in the south Atlantic and the Pacific Ocean does not compare. We could set a headline for the Chileans and New Zealanders to emulate by managing our mariculture and aquaculture sectors properly.
Will the Deputy please ask a question?
Is the Minister committed to supporting them? Will he discern whether we can increase our exports of salmon cuts and aquaculture products to European and world markets, particularly the Far East, through more sophisticated marketing? What steps have been taken to explore the Chinese market? I know the Minister is new to the Department but the least that I expect from him is a commitment to promote and expand the mariculture and aquaculture sectors and to generate the maximum number of jobs.
I agree with the Deputy that a more sophisticated approach is required to the processing and marketing of our seafood right across the spectrum, not just aquaculture and shellfish. My top priority is to improve this aspect considerably. It was useful to learn how the Chilean industry has expanded over such a short space of time. It has been very successful in adding value and exporting product to Japan and the United States through sophisticated marketing and packaging methods.
The salmon farming sector has significant potential. We are only producing 18,000 tonnes of farmed salmon. This compares with a figure of 100,000 tonnes for the Scots, 215,000 tonnes for the Chileans and almost 500,000 tonnes for the Norwegians. If the new technology now coming on stream proves successful and lessens the impact on the environment we should aim to increase the projected figure of 35,000 tonnes to 100,000 tonnes in coming years. There is no reason this cannot be achieved now that we have passed through one of the big bottlenecks in dealing with the difficult issue of licensing.
