Vol. 556 No. 5
6 Mr. P. McGrath asked the Minister for Agriculture and Food the reason Irish commercial beef exports to non-EU countries for 2000 was 255,000 tonnes while it was only 50,000 tonnes for 2001; the projected export figure for 2002; and if he will make a statement on the matter. [20688/02]
In consideration of the beef export profile for 2002, account must be taken of the enormous increase in the level of exports to the United Kingdom, expected to be in the order of 230,000 tonnes. It has always been my policy that the beef industry should develop its exports to European Union markets.
As regards third country markets, following the BSE crisis late in 2000, many such markets imposed bans on imports of European beef. While it is clear that these restrictions were imposed Europe-wide against the background of a crisis in mainland Europe and did not adequately reflect the many levels of BSE controls in place in Ireland at the time, the net effect for Irish exporters was that almost all our significant non-EU markets for beef, with the exception of Russia, were closed.
As a consequence of the restrictions on European beef imports imposed by third countries, the EU introduced on 1 January 2001 a purchase for destruction scheme which resulted in the removal of 278,000 cattle from the supply chain in 2001. Furthermore, exports of beef to the UK in 2001 amounted to 210,000 tonnes, which was an increase of 100,000 tonnes on exports to that market in 2000.
Since that time, no effort has been spared at political, diplomatic and technical level to have those markets reopened. As a result of these efforts, Egypt has lifted its restriction on imports of Irish beef and my Department has agreed with the Egyptian authorities the veterinary issues to permit trade to recommence. Following my representations to Commissioner Fischler, the EU Commission decided recently to increase export refunds for Egypt by up to 30%. This new special high rate of export refunds will make Irish beef more competitive on the Egyptian market and should help bring about the resumption of trade to a very important traditional market.
Is the Minister disappointed with the level of exports outside the European Union, especially to the Egyptian market? Is he disappointed that these exports have not opened up and what is his response? The Minister outlined the reason for the reduction in exports and balanced that against the increase in exports to the United Kingdom. Does he agree that the exports to the United Kingdom are of a temporary nature arising from the loss of much British beef due to the BSE crisis and the subsequent dramatic fall in production?
I am disappointed about a number of aspects of the beef industry. With regard to exports, my preferred choice is the most remunerative markets, those that give the best return. They are in the European Union. We have substantially increased exports to the United Kingdom market, from 90,000 tonnes two years ago to 230,000 tonnes this year. I am disappointed that 75% of such exports go to the catering and general wholesale trade while only 25% goes to the high return consumer retail shelves. I do not agree that this is a temporary phenomenon. The United Kingdom market is competitive but we should be exporting to the retail shelves.
Access to third country markets have been opened, for example, the ban on exports to Egypt has been removed. The Egyptian market was not supplied by the factories and the processing industry here because they maintained that export subsidies were too low. When I made representations to Commissioner Fischler he agreed to increase export subsidies, especially for Egypt, by 30%, yet still no Irish beef is being exported there, apart from the pilot consignment. I am disappointed with this because the trade should look on this as a medium and long-term operation. It should get into Egypt and increase the market there.
The Minister expressed disappointment that the Egyptian market has not opened. Does he agree that the consignment of beef launched to that market earlier this year was a general election gimmick and that it has not been followed up? Will he outline the efforts he has made to reopen this market? Has he revisited the county and has he looked at other markets outside the European Union? If so, will he provide details and indicate to what extent he has been successful?
Will the Minister accept that the bulk of the additional exports to Britain are linked entirely to the destructive consequences of the BSE outbreak there? What evidence does he have to suggest that our markets there will continue when the British industry recovers?
The destruction following the BSE crisis and the over 30 months scheme has been helpful, but that has been the case for other European countries. The Irish industry managed to increase its beef exports to the United Kingdom from 90,000 tonnes to 230,000 tonnes.
The Egyptian market is open and the ban on Irish beef has been removed. I can hardly take the beef there myself. It is a matter for the commercial industry to export it. I have visited Egypt and Cairo and have more sand under my nostrils in consequence than any Member of this House.
That was the general election consignment.
Having opened the market politically, it is about time the industry availed of the access provided to it. There is no gimmickry in that.
I respectfully suggest that last April the Minister visited Egypt with beef under his arm. He mentioned that only 25% of beef exports to the United Kingdom made their way to the top stream consumer shelves. Does he agree that this is because of a failure to recognise the importance of quality, including a failure by the Department to implement the beef assurance scheme, by the factories to pay farmers for quality product and by the EU Commission for ensuring that the premia payment is the same for a poor quality as for a good quality animal? Until such time as we start to pay for quality we will continue to have these difficulties.
Will the Minister verify that there is a charge for testing beef exports to Egypt and, if so, will he indicate if the Department paid the cost in the trial test undertaken for election purposes? Will he indicate whether efforts are being made to open other lucrative third country markets, such as in Saudi Arabia?
Will the Minister indicate that if the export trade went to Egypt it would force the factories to pay a better price to the producers? He is aware that they are paying considerably lower per tonne than they are receiving, especially from the British market.
There is a serious problem with the Irish cattle and beef industry in that there is little or no regard for quality. The total subsidy for the cattle and beef industry amounts to over €1 billion per annum, yet we are at the lower end of the market, either in the United Kingdom or Russia. We are now trying to get into Egypt. Farmers get between 80p and 85p per lb depending on the grade. A subsidy of €540 per animal is applied on top of that for first premium, second premium, extensification and slaughter premium, while the export subsidy amounts to 48p per lb, yet the farmer may only get 80p per lb.
That does not make economic sense under any circumstances and that is why Commissioner Fischler is talking about a decoupling scheme. He will pay the farmers not to produce. We must have regard to quality. We have been told time and again that cattle 30 months or over are not required anywhere but people have been fattening cattle for over 30 months and then we have a problem getting rid of them. The industry will have to seriously consider this matter. Having disputes and protests is no use unless the reality of the marketplace is considered. I must refer to the matter raised regarding the election.
That is very important.
Does the Minister remember what he said?
Yes, I do.
Order, please.
I am blessed with reasonably good recall and I remember well rushing around west Cork trying to get a quota for myself in 1997. On the 10 o'clock news in the morning the Minister for Agriculture of the day announced the reopening of the Egyptian market – the Minister was Ivan Yates.
Ceist a seacht. Order now, please.
The figures bear it out. There were 25,000 tonnes of beef exported during Mr. Yates' tenure as opposed to 67,000 now.
Order, please.
