Bernard J. Durkan
Question:93 Mr. Durkan asked the Minister for Agriculture and Food the extent to which beef, lamb and pigmeat suppliers are competitive on the world market; and if he will make a statement on the matter. [15106/04]
View answerThursday, 20 May 2004
Questions (93, 94, 95)
Written answers
The focus of the Irish beef industry has been to broaden and expand its market reach at EU retail level, shifting its orientation away from international commodity markets and into the higher priced internal EU marketplace. This contrasts with the situation that prevailed throughout the 1990s when the industry exported 50% of its products into non-EU markets. Last year, this share dropped to just 17% while the EU share increased proportionately. These increased sales into continental Europe coincide with the emergence of an EU market deficit in beef for the first time in 25 years together with falling production levels aligned with a strong recovery in consumption.
While there is greater reliance on EU markets, non-EU markets continue to be important for the beef industry. We have demonstrated the strength of our product and of out marketing capabilities by maintaining a valuable presence on the Russian market against strong competition from other EU member states and South America. The Irish industry is now well placed to consolidate this position, having demonstrated the quality and safety of Irish beef through its broad appeal to EU consumers. A targeted approach based on quality production represents the best and most profitable way forward to the Irish industry. This in turn highlights the importance of good breeding policies, payment related to quality and modern techniques which mechanical grading will provide.
High value markets, such as that which exists within the EU, will attract competitively priced product from a range of markets, most particularly from South America. I believe the best way to withstand such competition and build on our own already strong presence there is for our beef industry to maximise its efficiency levels at all stages and continue to offer the type and quality of product required by the market.
In the sheepmeat sector Irish exports are confined to EU countries, where France is the main outlet, accounting for 70% of total exports. Consumption in this market is falling and there is strong competition from UK and New Zealand. Nevertheless Ireland is the third largest import supplier to France. Though consumption in France is expected to recover somewhat in 2004, increased supplies from the UK and New Zealand will make the market there even more competitive. Continued strong demand on the home market which has taken an increased share of overall production in recent years will reduce the quantities available for export and lessen our dependence on the French market.
The pigmeat industry has demonstrated its competitiveness by maintaining exports at a generally steady level over recent years. The importance of actively working to achieve better competitiveness, particularly at processing level, was highlighted in the Prospectus study. In some markets, particularly in third countries, Irish exports must compete with product from existing and newly emerging supplier countries with a much lower cost base. Greater trade liberalisation and the growing ability of new producer countries to meet veterinary standards will mean that greater quantities of pigmeat will be available for international trade. Bord Bia has identified as strategic priorities for the Irish pigmeat industry the improvement of its positioning on the home market as well as the development of profitable niche markets abroad.
Bernard J. Durkan
Question:94 Mr. Durkan asked the Minister for Agriculture and Food if Irish suppliers of meat, dairy and other food products are given an equal opportunity to tender to supply the major food chains; and if he will make a statement on the matter. [15107/04]
View answerBernard J. Durkan
Question:95 Mr. Durkan asked the Minister for Agriculture and Food if Irish food suppliers have equal opportunity to supply the market with particular reference to the major chain stores; and if he will make a statement on the matter. [15108/04]
View answerI propose to take Questions Nos. 94 and 95 together.
Total output of the food industry is valued at €15 billion, of which exports account for €7 billion. Ireland is an open economy and the future of Irish food producers and the industry lies in access to all markets, at home and abroad, and an emphasis by all players on competitiveness, innovation and understanding of market trends. My strategy and that of the State agencies is to underpin the ongoing success of the food sector by facilitating the industry to maintain competitiveness and capacity to meet the demands of the market in terms of quality, convenience, price and product specification.
Accordingly, significant funding is available under the national development plan for capital investment, research, technology and innovation, marketing and promotion and human resources. The specific food related initiatives in the national development plan provide funding to improve the quality and marketability of Irish food produce. For example, over €7 million in aid is being provided for the capital investment scheme alone in 2004 to assist Irish producers to meet the standards of safety and quality demanded by consumers. A further €11 million is being provided under the food institutional research measure to fund public good research by third level institutions and Teagasc.
Statutory responsibility for instituting action in relation to any possible lack of access or unequal opportunity on the domestic market rests with the Competition Authority to whom any evidence of untoward trading should be addressed.