Dáil Éireann Debate, Thursday - 8 May 2014
18. Deputy Denis Naughten asked the Minister for Agriculture, Food and the Marine the steps he is taking to open up the live export cattle trade to the UK; and if he will make a statement on the matter. [20211/14]
View answerAs the Deputy is aware, my Department attaches considerable importance to the live export trade and, over the years, has been very active in facilitating shipments abroad. The live trade serves a dual purpose in providing alternative market outlets for beef farmers; it meets a demand for suitable livestock in foreign markets while providing increased competition for cattle in the domestic market. The reality is that the live trade to the UK is open for business as shown by the data generated by my Department’s AIM database. In fact, total live exports to the UK for the year to date have reached 19,000 head, an increase of some 3,800 head or 25% up on the comparable period in 2013. Live exports to Northern Ireland, which account for the vast majority of the UK live trade, amounted to over 14,000 head up to week 17 (w/c 27 April), which represents an increase of 1,700 head or 14% on the 2013 figure. Most of the Northern trade consists of stores and finished cattle.
However, the potential to grow the live trade to the UK is constrained by the buying specifications operated by the British retail chains in relation to cattle born in this country and exported live for finishing and processing in that market. The retailers’ longstanding policy is to market British and Irish beef separately. This means that beef must be sourced from animals originating in one country; i.e. born, reared and slaughtered in the same country. In addition, logistical difficulties arise when a small number of Irish-born animals are slaughtered in a UK meat plant. Under mandatory EU labelling rules, these carcases have to be deboned in a separate batch, packaged and labelled accordingly, thereby incurring additional costs for the processor.
While Bord Bia has repeatedly raised this issue with British retailers over the years, they are unlikely to reverse their marketing policy in the short term. Nevertheless Bord Bia, in its ongoing interactions with British customers, will continue to pursue all opportunities to maximise the full potential of the beef and livestock trade with our largest trading partner.
One solution that been suggested is to apply to the EU Commission for a Protected Geographical Indication for all Irish beef. For such an application to be successful, it would be necessary to demonstrate that the same characteristics countrywide in terms of geographical/human factors are the causal link in creating this one unique product. An obvious issue would be beef from Northern Ireland and how similar/different the geographical/human factors are for this beef. Although it is possible to have GI registration for product that crosses different legal jurisdictions, the product has to be the same product produced in the same way and one whose uniqueness can be shown to be causally linked to the geographical area.
Furthermore, origin label requirements present difficulties for an all-island approach. GI names are protected and other products cannot use their names or imply that they are like them. However, under labelling rules, beef must be labelled with the Member State of origin. The Commission is concerned that there would be a contradiction between these requirements. In any event, with mandatory origin labelling continuing to apply, there is no guarantee that such an application, even if successful, would have any impact on the purchasing policy of British multiples.
Arising from the roundtable discussions with key stakeholders that I hosted on 17 April, I announced number of measures to address the challenges currently facing the overall beef sector, including the allocation by Bord Bia of €0.5m to expand and target the promotion of Irish beef through its campaigns in the UK and in certain Continental markets, and an improvement in the presentation of market intelligence for farmers by my Department. I have also indicated that I will continue to engage with my Northern counterpart, Ms Michelle O’Neill, on issues relevant to producers including cross-border trade, and have asked Mr. Michael Dowling, Chairman of the Beef Activation Group, to review progress on the development of the sector. His report will examine issues facing the beef industry, and will cover a range of issues, including trade in live animals, and will be presented to the next round table meeting in early June.
