Dáil Éireann Debate, Wednesday - 15 December 2004
191 Mr. McGuinness asked the Minister for Agriculture and Food her policy on the development of the beef industry here; the strategies in place to pursue her long-term policies; the way in which these are benchmarked; and if she will make a statement on the matter. [33676/04]
View answerThe 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 has coincided with reduced dependence on support measures such as intervention and export refunds. This contrasts sharply 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. Non-EU markets continue to be important outlets for Irish beef and the maintenance of an appropriate export refund policy, which I keep under close review, is a key element in the sale of EU beef in third countries. I will continue to press hard for the re-opening of traditional third country markets and I was particularly pleased to announce the re-opening of the Algerian market for chilled beef in early October.
Increased sales into continental Europe coincided 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. Ireland is now well placed to consolidate this position and to move further up the value chain, 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 is particularly the case in the post decoupling context when the market will be the sole determinant of the nature and scale of output from the sector. In such a context there will be a need for even greater emphasis on good breeding policies, payment related to quality and sophisticated and integrated supply and purchasing systems.
In its connection, Ireland was the first EU country to formally approve the introduction of mechanical classification on a commercial scale. Three systems were approved following authorisation tests conducted under the terms of EU Commission Regulation (EC) No. 1215-2003 and the system selected by the industry is now installed in 24 meat plants accounting for almost 95% of our beef exports. The move to mechanical grading, which was provided for under Sustaining Progress and backed by a specially tailored grant scheme operated by my Department, was achieved with the co-operation of the sector as a whole. It is generally accepted that the move will help the industry become more market orientated and better positioned to exploit the opportunities for Irish beef within the expanded EU.
