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Wednesday, 12 Nov 2014

Written Answers Nos. 89-92

Beef Industry

Questions (89)

Bernard Durkan

Question:

89. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which beef production and beef prices here have fluctuated annually over the past five years; and if he will make a statement on the matter. [43475/14]

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Written answers

The numbers of animals slaughtered at DAFM approved facilities over the last 5 years are provided below. This includes the number of animals slaughtered in 2014 to-date which is over 10% higher than the number slaughtered in the same period last year and nearly 20% ahead of the same period in 2012.

Slaughter figures

2010

2011

2012

2013

2014 (YTD)

1,637,431

1,559,684

1,391,586

1,485,772

1,385,825

As demonstrated by the figures below, the price paid for R3 steers in Ireland climbed steadily over the four years to 2013, before declining in 2014 . Nonetheless, it should be noted that the average year-to-date figure in 2014 is well ahead of the average figure in the years preceding 2012.

R3 Steer Price (cents/kilo excluding VAT)

2010

2011

2012

2013

2014 (YTD)

291.39

343.65

386.38

407.47

368.91

Food Exports to China

Questions (90)

Bernard Durkan

Question:

90. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he has succeeded in establishing new markets for the food industry in China arising from his recent visit; and if he will make a statement on the matter. [43476/14]

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Written answers

I led a trade mission to China from 2-7 November which comprised 37 of Ireland’s leading agri-food and agri-services companies and which included over 50 trade promotion meetings in 5 cities. The purpose of the trade mission was to provide an opportunity to showcase Ireland’s world class food and drink products and services in this expanding market and to facilitate business to business meetings between companies. The opportunities and potential of the Chinese market for the Irish agri-food and related sectors are enormous. The importance of the Chinese market to Ireland is demonstrated in our agri-food and related exports to China and Hong Kong which have expanded from €254m in 2011 to €442m in 2013, a 74% increase, while exports to the end of August 2014 amounted to €405m from €300m in the same period last year, a 35% increase. I would expect to see these exports reaching €500m this year. The potential for our exports to continue to grow is linked to China’s ongoing food security and food safety concerns and an insatiable demand for infant formula, from which Ireland can benefit strategically because of our potential to increase production particularly in the dairy sector from 2015, and because Ireland is, increasingly in the eyes of the Chinese, being regarded as a country which has the highest food safety standards, having had all its dairy plants, which applied to export to China, approved this year.

Following political meetings with my Chinese counterparts , including the Minister for Agriculture (Mr. Han Changfu) and the Minister responsible for market access (Mr. Zhi Shuping), we have had a significant breakthrough on beef, with a firm commitment from the Chinese Quarantine and Inspection Service (AQSIQ) to carry out a formal inspection visit in Ireland in early December. My Department has already begun an intensive engagement with the Chinese authorities and with Irish industry on the planning for this inspection visit. In addition the Chinese authorities also agreed to the wording of a certificate for the export of bovine semen to China which paves the way for the first exports of bovine semen from Ireland to China. An Irish company (Dovea) signed a contract of intent to export bovine semen.

In the dairy sector, the week saw a number of events marking strategic partnerships between Irish and Chinese dairy companies which are now resulting in dairy produce including infant formula, manufactured in Ireland and identified as originating in Ireland on sale on Chinese supermarket shelves, and becoming the premier product of choice for Chinese consumers. We are fortunate to have Irish companies such as IDB, Glanbia, and Kerry Foods, and multinationals such as Abbot, Wyeth, and Nutricia, which have manufacturing facilities in Ireland, representing Ireland in this important market. In seeking to ensure that there are no technical barriers to trade in the future, I have agreed an MOU with Minister Shuping on introducing a pilot electronic certification system in the dairy sector.

In the seafood sector, I opened the largest ever Irish stand at the Chinese Seafood Expo, in Qingdao, the largest in Asia, where Ireland was represented by 11 companies. I also concluded an MOU with Minister Zhi Shuping of AQSIQ on facilitating market access for seafood into China. While our exports of seafood are small, valued at €16m in 2013, these exports have grown by almost 50% from 2012 when we exported just €7m. A number of agri-services companies on the trade mission also concluded contracts in China including Samco and Keenans.

The one clear message I received from the Chinese authorities, companies and buyers this week is that they know and trust food originating from Ireland as being produced to the highest standards when it comes to food safety, quality and sustainability. It’s important now that we build on this momentum and keep focused on providing quality agri-food, seafood products and services to the Chinese market.

Farm Household Incomes

Questions (91)

Bernard Durkan

Question:

91. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he and his Department continue to monitor the margins available to producers in the beef, lamb, pig and poultry sectors; if any particular action is warranted to address any obvious issues; and if he will make a statement on the matter. [43477/14]

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Written answers

In terms of returns to farmers, Teagasc’s annual National Farm Survey provides analysis of output, inputs and income at farm level, based on a representative sample of farms. Family farm income per farm (FFI) is the principal measure of income used in the National Farm Survey. It is calculated by deducting all farm costs (direct and overhead) from the value of farm gross output. Factors of production owned by the farmer, such as family labour and land, are not included as costs. Family farm income therefore represents the financial reward to all members of the family, who work on the farm, for their labour, management and investment.  It does not include income from non-farming sources and thus may not be equated to farm household income. The National Farm Survey is based on a sample of over 900 farms, and represents a national population of 79,000 farms, with a standard output of €8,000 or more.  The main farming systems covered are: dairying; cattle rearing (suckler farming); cattle other (mainly beef finishing); sheep; tillage; and mixed livestock. Pigs and poultry farms are not included in the survey, as the small number of such  farms makes it difficult to obtain a representative sample of these systems.

Other Teagasc research publications, such as ‘Management Data for Farm Planning’ book, provide detailed comparisons of returns available from the main farm enterprises, for farm planning purposes.

It is vital that farmers are adequately rewarded by the market for the products that they produce and that the necessary supports are in place to ensure a viable agriculture sector throughout Ireland into the future. The level of Direct Payments secured during the reform of the CAP is vital in this regard, as are the supports outlined in the €4 billion draft Rural Development Programme which is currently with the European Commission for approval.

Common Agricultural Policy Reform

Questions (92)

Bernard Durkan

Question:

92. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he remains satisfied that farm families here will continue to benefit from Common Agriculture Policy reform in a fair and equitable fashion; and if he will make a statement on the matter. [43478/14]

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Written answers

I am satisfied that farm families in Ireland will benefit from the reformed CAP in a fair and equitable fashion. Data from Teagasc’s National Farm Survey shows that direct payments accounted for 77% of family farm income on average in 2013, and are even more significant as a source of income for drystock farms, particularly those in disadvantaged areas.

The environmental focus of supports under CAP reform, with a ‘greening’ payment under Pillar I and funding for the new GLAS scheme under Pillar II, will enhance the sustainability of Irish farms. The enhanced support for young farmers under both Pillars, in conjunction with the Budget changes recently introduced following from the Agri Taxation review, should encourage greater land mobility and earlier transfer to young trained farmers.

With regard to direct payments, the decisions I made to implement the partial convergence model with a minimum payment per hectare will lead to a greater convergence of payments per hectare in Ireland, albeit at a much slower rate than the Commission’s original proposal for a flat rate payment per hectare. I believe that the new system will continue to reflect the realities of production in Ireland.

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