Vol. 576 No. 2
135 Mr. Durkan asked the Minister for Agriculture and Food the countries to which Ireland exports dairy products; the degree to which it is intended to increase and expand such markets; and if he will make a statement on the matter. [29488/03]
Ireland exports a wide range of dairy products to over 100 countries world-wide. The main products exported include cheese, butter, casein, milk powders and baby food. Over 85% of all dairy exports from Ireland are destined for EU member states. The United Kingdom is a very significant market for Irish dairy products, accounting for over 70% of all Irish cheese exports and 20% of butter exports annually. Germany and France are important markets for butter, importing 35% and 16% of Irish butter exports, respectively, in 2002. The Netherlands accounts for 25% of milk powder exports and Italy imports large quantities of Irish casein and SMP.
Approximately 15% of Irish exports are sent to non-EU countries. The United States is a very important market for Irish cheese and casein. More than half the Irish cheese and over 85% of Irish casein exported outside of the EU goes to the United States. Other significant markets for Irish dairy products include Nigeria, the Congo, Egypt, Mexico, Singapore and the Philippines.
The Irish dairy industry is highly dependent on exports and I recognise the need to increase and expand our presence in export markets. The export of dairy products, in both commodity form and in the form of increasingly sophisticated ingredient and value-added products is a matter for the industry. Where appropriate, EU-funded export refunds apply. The industry is aware of the need to increase and strengthen its position on EU and non-EU markets and, where possible, will be assisted by my Department and by An Bord Bia in this regard.
136 Mr. Durkan asked the Minister for Agriculture and Food his preferred options for the development of the dairy industry in the future; if this is in accord with EU policy; and if he will make a statement on the matter. [29489/03]
The Prospectus report, which I commissioned in conjunction with Enterprise Ireland and the dairy industry, examined the structure of the Irish dairy processing sector and made a number of recommendations on actions to improve the efficiency and long-term competitiveness of the industry. This report has contributed to the very necessary debate and analysis within the industry on the steps it must take to move into the next phase of its development.
The main findings, which are generally accepted by the industry include the need to increase scale and reduce costs in order to position the sector to withstand international competition and increase our penetration of high-value EU consumer markets. This would include improving the product mix to meet the demands of these markets and would in turn demand increasing the expenditure on research and development.
Over the past few months, I have met the various processing groups and Enterprise Ireland to discuss the implementation of these strategies and identify any areas where I may be able to assist or facilitate with the changes required in the dairy industry. While I have made it clear that my Department and other State agencies will help in any way possible, within the constraints of EU policy, decisions on the best processing structure and the type of product mix best suited to Irish conditions and market requirements are a matter for the management and boards of the individual undertakings.
