Dáil Éireann Debate, Thursday - 27 January 2005
42 Mr. Durkan asked the Minister for Agriculture and Food if she has satisfied herself regarding the future of the beef, lamb and pigmeat industry, in view of the likelihood of increased competition and the tendency for superstores to source supplies outside the country; and if she will make a statement on the matter. [1999/05]
View answerAccording to CSO statistics, some 13,000 tonnes of beef, 60% of which originated within the EU, were imported into Ireland in 2003. It should be noted that imports might include the re-import of Irish product originally exported from this country. Imports from other member states may include imports of meat product already in free circulation in the EU but which originated in third countries through various GATT agreements. I emphasise that imports overall represented slightly more than 2% of total beef production in Ireland whereas exports represent some 90%.
Beef imports into the EU from third countries must have been sourced, first, in countries and, second, in premises that are currently listed and approved by the European Commission and which are subject to veterinary audits by the EU's food and veterinary office. In addition, such imports are subject to checks laid down in the harmonised rules prescribed at European level, and must be accompanied by the prescribed veterinary health certification from the competent authorities in the country of export. In addition they are subject to Union labelling requirements.
Last year we produced 560,000 tonnes of beef of which 475,000 tonnes were exported. There has been a significant increase in sales into the UK and continental Europe coinciding with the emergence of a EU market deficit in beef for the first time in 25 years and falling production levels aligned with a strong recovery in consumption. This deficit is expected to be of the order of 300,000 tonnes in 2005.
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 has coincided with reduced dependence on support measures such as intervention and export refunds.
The reform of the CAP agreed last year means farmers will enjoy greater freedom to grow and develop their enterprises producing for consumer requirements supported by the single farm payment. 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.
Last year was excellent for the sheepmeat sector, with throughput at export plants 15% higher than 2003. Production in 2004 totalled approximately 71,500 tonnes of which 51,500 tonnes were exported, mainly to the French market. Imports amounted to 2,000 tonnes — an increase of 500 tonnes over 2003 — and domestic consumption was 22,000 tonnes. Irish lamb competes successfully against lamb from New Zealand and other countries on the highly competitive French market and I see no reason that it should not continue to command the loyalty of Irish lamb consumers on the home market.
The outlook for the pigmeat sector is positive and the Irish pig industry is well positioned to take on the competitive challenges that lie ahead. Efficiencies at farm level are excellent by European standards. The Prospectus study identified the need for improved scale and capacity utilisation at processing level as critical to the ongoing competitiveness of the sector and there has been significant rationalisation of this nature since the publication of the report.
Irish pigmeat is exported worldwide to a range of EU and non-EU destinations, including to demanding markets such as the USA and Japan. I was pleased during my recent trip to China to sign a protocol with the Chinese authorities providing for the opening of the Chinese market to Irish pigmeat exports. Pigmeat exports, and the sector as a whole, receive very little EU financial support with the result that it is already well prepared to cope with the more liberalised trading environment that undoubtedly lies ahead. Imports of pigmeat from third countries into the EU are at negligible levels and no significant change in this position is envisaged for the foreseeable future.
Demand for Irish pigmeat on the home market is strong and, although imports are growing, we still export twice as much product as we import. The Bord Bia quality assurance scheme is a vital ingredient in promoting pigmeat on the home market and I believe it will continue to make a valuable contribution to ensuring the maintenance of the domestic market share.
