Written Answers Nos. 231 - 239
231. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine his objectives to support the pig producing sector, with particular reference to the need to address the issue of rising costs, low return and unstable markets; and if he will make a statement on the matter. [21567/16]
View answerMy Department carefully monitors developments in the pig sector, both domestically and internationally, and meets with stakeholders regularly to hear their views on developments. I am conscious of the fact that prices have come under pressure over the last year and the difficulties that this is causing for producers. Having said that, it must be noted that Irish prices have remained broadly in line with EU prices and I note there has been a slight increase recently, reflecting renewed market confidence in Europe and increased demand in China. Recently, my Department distributed a €1m direct aid package for pig farmers in Ireland. This support originates from a package of measures proposed by the EU Commission in response to the significant price deterioration experienced by pig farmers in 2015, the impact of which has been exacerbated by the closure of the Russian market. Under the aid package agreed at EU level in September of last year, €0.5m was allocated for the pig sector for Ireland. The Government subsequently matched this funding to provide an overall aid package of €1m.
At an EU level, I note that the European Commission has recently established a Meat Market Observatory to provide the EU meat sector with more transparency by means of disseminating market data and short-term analysis in a timely manner. This is due to meet for the first time this week. The tasks of the group are to take stock of market developments, and to highlight and assess the current market situation for the sake of economic operators and the Commission services, along the lines of the Milk Market Observatory.
My Department also supports Bord Bia’s marketing and promotional activities, and the Pigmeat Quality Assurance scheme helps to consolidate the position of Irish pigmeat on the domestic market and to expand its presence on EU and third country markets. Bord Bia plans to use additional funds to run a targeted Pork promotional campaign this coming Autumn and further campaigns are planned to promote ham and bacon. Teagasc is also actively engaged in the provision of technical advice to improve the operational efficiency of pig farmers.
I have also included provision in the RDP for an on-farm capital investment scheme, TAMS II, with an overall budget of €395 million across all sectors, with €35.8 million allocated for 2016.
Amongst the areas identified for initial funding are investments on pig farms for energy, water meters and medicine dispensers. Other elements of the RDP, such as targeted on farm animal health and welfare scheme will also be of benefit to the pig sector.
Finally, I am committed to ensuring that as many alternative markets as possible are open to the Irish Pigmeat sector. In that regard I will continue to prioritise the opening of new markets such as Vietnam and the Philippines, which serve as valuable alternative markets to Russia for Irish pigmeat exports. Indeed I will be leading a trade mission to Vietnam and China during the first week in September during which I will be prioritising the promotion of pigmeat in two of our main export markets.
232. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the degree to which he sees opportunities for improvement and expansion in the beef and dairy sectors; and if he will make a statement on the matter. [21568/16]
View answerThere is a strong demand for beef globally and my role as Minister is to facilitate market access and to enable Irish exporters to take advantage of the opportunities that arise. In 2015 Ireland exported an estimated €2.2 billion, or approximately 500,000 tonnes of beef, to almost 80 countries around the globe. Food Wise 2025 acknowledged that there is a rising global population together with the growing middle classes in a number of rapidly growing economies and changing dietary patterns to incorporate increased protein consumption. Taken together these provide a great opportunity for increasing the exports of high quality, safe and sustainably produced Irish beef. As a member of the European Union and the Common Market, Ireland already has full market access to the 27 other EU Member States for beef and other commodities produced.
Therefore Ireland has ready market access to a population of over 500 million inhabitants, which indeed is one of the many benefits that comes with being a Member of the EU. The majority of Irish beef exported is to other EU Member States. According to Bord Bia, in 2015 some 52% of Irish beef exports went to the UK and 36% went to other EU markets. Recent events in markets close to home have highlighted once again the importance of diversifying our international beef markets. As an exporting country, accessing new markets is crucial to the long-term sustainability of our beef sector.
The balance of our beef exports was to non EU markets including the USA, Middle East, Philippines, Hong Kong, Ghana and Switzerland amongst others. These Third Country markets are increasingly an important alternative outlet for the industry. My Department engages on an ongoing basis with many Third countries, in collaboration with Bord Bia, the meat industry, Department of Foreign Affairs & Trade and the European Commission on various market access issues. My Department continues to push strongly for market access to other Third Countries.
In 2015 Ireland had some notable successes including becoming the first EU Member State to gain beef access to the USA, having a BSE ban lifted by the Chinese authorities and negotiating an extension to our market access to the Philippines, where we are now the second largest supplier of beef. More recently beef markets in Canada, Oman and the Maldives have also been opened. Significantly our access to the US market was recently further extended to incorporate manufacturing beef, as a testament to our beef production and regulatory systems. It is expected that similar extended beef access to Saudi Arabia will be achieved shortly. We are currently in the process of trying to secure beef access to other third countries including, inter alia, China, South Korea, Israel, Ukraine and Vietnam. It is my intention to continue to focus on developing as many third country markets as possible in order to provide exporters as many commercial opportunities as possible in a competitive global marketplace.
Dairy exports in 2015 were valued at over €3.2bn and the dairy sector is by a number of measures the country’s largest indigenous industry. Due to its reputation and significant global footprint, the dairy sector in Ireland retains significant future growth potential. Last year, Irish dairy products were exported to approaching 130 countries.
I am acutely aware of the need to develop as many market outlets as possible for Irish dairy products. Notwithstanding our successful trade performance, I continue to work with industry to raise the profile of the Irish dairy sector, and the Irish agri-food sector generally, in emerging markets in the Far East, North Africa, the Gulf States and elsewhere. China is an obvious destination for certain dairy products and in particular for dairy based infant formula and I intend to lead a trade mission there in the Autumn. My Department, along with Bord Bia, is working very closely with the industry to build on our presence in all of the aforementioned locations. I am acutely aware of the need to continuously develop relationships in new and expanding markets in order to build upon the kind of confidence in Irish production and control systems that provide a platform for long-term trading relationships in the future.
Whilst we are currently experiencing a period of prolonged volatility, most market analysts predict that medium term prospects for global dairy markets are good, with growth in world population and wealth expected to stimulate strong levels of demand for dairy products. My aim is to help position the Irish dairy sector to be able to take advantage of this opportunity.
233. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine his plans to promote Irish meat and dairy exports globally in the aftermath of a British exit from the European Union; and if he will make a statement on the matter. [21569/16]
View answerPromotion of Irish meat and dairy exports globally is of course an ongoing and central component of the strategic development of the agri-food sector, as evidenced by its placement right at the centre of Food Wise 2025, the industry’s strategy for development over the coming decade. Food Wise 2025 outlines the huge potential for growth in agri-food exports to new and emerging markets, particularly in Asia, Africa and the Gulf region. This is where our efforts will be focused for the foreseeable future, particularly given the need to diversify our markets and to reduce our reliance on traditional destinations such as the UK. Indeed this is all the more relevant after the UK’s decision to leave the EU, which presents significant new challenges for the agri-food sector in particular.
In keeping with the priorities outlined in Food Wise 2025, I intend to lead a Trade Mission that will visit Vietnam, Singapore and China in early September. My Department is currently working with Bord Bia and Enterprise Ireland to finalise the arrangements for this mission, which will include participants from across the agri-food sector and will feature extensive trade contacts as well as political discussions with my counterparts in the host countries.
I am also considering a range of other destinations for later in 2016 and for 2017, although no decision has yet been made in terms of content or timing. Again, markets in Asia, Africa and the Gulf Region are likely to feature prominently in these considerations, and I am of course ready to respond as appropriate to other opportunities that may arise.
234. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he has examined submissions he has received from the Irish Farmers Association and other farming organisations; his plans to respond to the main features therein; and if he will make a statement on the matter. [21570/16]
View answerI will shortly be making my annual submission to the Minister for Finance on taxation matters. The views of all the stakeholders who engage with me, including the IFA, will inform that submission. With regard to Ireland’s Rural Development Programme (RDP), the 2016 Amendment to the RDP is currently under consideration. The views of all stakeholders who made submissions, including the IFA, will inform that consideration.
235. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the degree to which he continues to strictly enforce strict animal health and traceability, thereby enhancing the competitive edge for beef, lamb, poultry and pigmeat at home and abroad; and if he will make a statement on the matter. [21571/16]
View answer253. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine if he continues to be satisfied that labelling and traceability regulations applicable throughout the European Union, in respect of products originating within the Union or outside, continue to be observed in the spirit and the letter; and if he will make a statement on the matter. [21636/16]
View answer260. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which labelling of beef, lamb, pigmeat, poultry or fish products imported here directly, through other European Union or third countries continues to comply with the most rigid labelling regimes applicable here and throughout the European Union; and if he will make a statement on the matter. [21643/16]
View answerI propose to take Questions Nos. 235, 253 and 260 together.
I attach great importance to the food and drink industries exports and their contribution to our economic recovery. Agri food exports account for 7% of GDP and continue to grow year on year. My colleague, the Minister for Health, has overall responsibility for the general food labelling legislation and new EU food information regulations which were adopted by the Council of Health Ministers in December 2011. However, my Department plays an important role in the enforcement of this legislation under service contract to the Food Safety Authority of Ireland. Currently my Department is assisting our colleagues in the Department of Health on the drafting of a new Statutory Instrument to bring the labelling of loose pigmeat and poultry into line with the origin labelling rules for packaged meat brought in on April the first 2015. This will require businesses who sell meat loose in their premises to clearly identify the country of rearing and slaughter of the animal from which the meat is derived. Once the SI has been finalised my Department will arrange for it to be put on the Technical Regulation Information System for notification to all EU Member States and following on from the obligatory three month stand still period I am confident that the Minister for Health will be in a position to sign the SI, bringing it into force.
Primary responsibility under EU law for the safety and traceability of food placed on the market lies with food business operators. The role of National Competent Agencies is to verify compliance with this requirement. This is done via a combination of inspecting establishments and auditing the food safety management systems which operators have in place. These controls are applied at different stages in the food supply chain. Regulation (EC) No. 178 of 2002 sets out the general principles and requirements of EU food law and stipulates that food business operators must, at all stages of production, processing and distribution within their business, ensure food law requirements are satisfied. In regard to traceability, the regulations require that food business operators have systems to identify any person who supplies the business with a food, and a system to identify other businesses to which their product has been supplied. This is referred to as the ‘one step forward, one step backward’ traceability system. There are additional requirements for certain fishery and aquaculture products under the Control Regulation (Regulation 1224/2009 and Implementing Regulation 404/2011) from first sale to subsequent stages of production, processing and distribution up to retail.
My Department has a permanent veterinary presence at all its approved slaughter plants. Controls at plants only engaged in secondary processing are carried out at a frequency based on an annual risk assessment. An annual audit of imported products is carried out in each Department-approved plant, including checks on physical identity, labelling and documentary checks for product originating in EU Member States and third countries. Labelling and documentary checks are routinely conducted by the Department.
The import of products of animal origin from third countries is governed by a comprehensive and robust legislative framework laid down at EU level, controlled by Member States in the first instance, and audited by the European Commission’s Directorate General for Health and Food Safety (formally the FVO), to ensure compliance with all of the relevant food safety standards. The legislation imposes health and supervisory requirements designed to ensure that imported products meet standards equivalent to those required for production and trade between Member States. Border Inspection Posts are operated by my Department. Import control procedures on products of animal and fish origin are highly prescriptive and strictly audited by the Directorate to ensure compliance. Inspection finding reports are published on the Directorate General for Health and Food Safety’s website.
236. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine his vision for the ongoing development of the bloodstock industry, with obvious benefit to the economy; and if he will make a statement on the matter. [21572/16]
View answerIreland’s reputation as one of the leading racing and breeding nations in the world has been hard won and during the economic downturn of recent years, the bloodstock industry has shown its resilience and capacity to come through challenging times and, with continued investment, I am confident will flourish in the long-term. Horse Racing Ireland (HRI) is the statutory body with primary responsibility for the development of the bloodstock industry. HRI has ambitious plans for the development of this sect or which are outlined in its draft strategic plan. The HRI strategic plan 2016 - 2019 was presented to my Department last year.
The plan demonstrates that the industry can provide a significant return on investment to the State in terms of employment (particularly in rural Ireland), wealth-creation and the development of a sustainable industry, which will continue to play a significant role in Ireland’s economic recovery. In addition to economic benefits, it will add to the social capital of communities throughout the country, as it has done for generations.
The overriding objective of HRI’s strategic plan however is that by 2020 the industry will be delivering an economic return to the Irish economy significantly beyond the existing levels (current return to the economy is €1.1Billion).
My Department will work closely with HRI in its implementation and will provide whatever support and encouragement that can be made available in this regard.
237. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine his plans to promote and develop the fishing industry, with particular reference to maximising incentives to assist families dependent on fishing; and if he will make a statement on the matter. [21573/16]
View answerOur seafood industry has been on a sustained growth path in recent years, with sales growing to €890 million in 2015. Current FAO estimates are that growth in world consumption of fish will require an extra 40 million tonnes of seafood by 2030. Ireland can capture a significant share of this global seafood opportunity with the right strategy and supporting investment. FoodWise 2025 recognised this opportunity for the growth of our seafood industry and set out a strategy to realise that growth potential by focussing on the key areas of sustainability, added value, processing scale, human capital, increasing raw material supply and developing our markets.
In January this year, a new €240 million development programme for Ireland’s seafood sector was launched - the European Maritime and Fisheries Fund Operational Programme. That Programme will be the primary tool to address the 6 key areas identified in FoodWise. I was delighted to announce in June the first tranche of €4.3 million in grants to 51 aquaculture and seafood processing enterprises under the EMFF Programme.
Under that Programme, I am making available €30 million to kick-start growth in our aquaculture sector, which has been stagnant for too long. In December, we published Ireland’s first National Strategic Plan for Sustainable Aquaculture Development, targeting growth in output of 45,000 tonnes by 2023, aided through 24 specified initiatives. To complement those efforts, my Department is working to deliver up to 200 licence determinations this year and will initiate a review of aquaculture licensing procedures, as recommended in FoodWise.
All of these efforts focusing on aquaculture, together with efforts to attract landings of fish by foreign vessels, will help increase the supply of raw material to our growing processing industry to convert to added value consumer foods, food ingredients and functional foods. I will be making available €33 million Government funding through the EMFF Programme to support the further development of our processing sector through enhanced scaling and value adding. FoodWise recognises that we need to reduce the level of seafood product which is exported in commodity form from its present 70% level to below 50%. Adding value to seafood products will make a huge difference to the economic activity and levels of employment in our coastal communities.
These efforts are being supported through €2 million investment in 2016 by Bord Bia in promoting Irish seafood internationally and assisting our producers to find and grow markets. They are being supported by a commitment within the seafood sector to sustainability, with 32 Irish seafood companies fully verified as members of Origin Green, and a further 16 applications in the pipeline. Between them, these companies will account for in excess of 80% of total seafood export values.
In these many initiatives to implement the FoodWise strategy and in our financial commitment through the EMFF Programme, Government is clearly stepping up to the challenges and striving to grow our seafood industry.
238. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the degree to which he can secure assurances to protect the agrifood sector in the event of the Transatlantic Trade and Investment Partnership; and if he will make a statement on the matter. [21574/16]
View answer255. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he remains satisfied that ongoing trade negotiations between the European Union and the United States of America do not militate against the agrifood sector here; and if he will make a statement on the matter. [21638/16]
View answerI propose to take Questions Nos. 238 and 255 together.
I will continue to do everything possible to secure a positive outcome for the agri-food sector from the ongoing negotiations on the Transatlantic Trade and Investment Partnership.
A TTIP deal is of significant importance for Ireland. The US is one of our leading trading partners, and we have a large and growing agri-food trade surplus with them (exports of €869m last year, compared to imports of €271m). The drinks industry currently accounts for over 60% of the value of exports.
Ireland has significant offensive interests in the TTIP negotiations. For example, we see worthwhile opportunities in the US for cheese, powdered milks and sports products, and further opportunities for branded packaged butter, if we can remove some regulatory barriers. Prepared consumer foods and fish could also benefit from trade liberalisation.
Beef is a unique sector in that we have both offensive and defensive interests. In the long term, any significant increase in beef imports to the EU could have adverse effects on the Irish industry. That was confirmed by a number of recent studies and is an issue we have raised strongly with the European Commission. We therefore have legitimate concerns about the size, composition and administration of any beef quota offered to the US.
We should also seek a significant EU quota for beef to the US as part of any TTIP agreement. Following the re-opening of the market, Irish beef exports now fall under a 65,000-tonne quota for ‘other countries’ on a first come, first served basis. This is mainly filled by Latin American countries. Now that we have access for manufacturing beef we would stand to benefit greatly from a specific EU import quota in the US, and this can only be achieved through TTIP.
A number of key issues in these negotiations arise in relation to hormone treated beef, food standards, GMOs and Geographical indicators. All of these arose in the Canadian negotiations and were resolved, and should also be capable of being resolved in TTIP.
It is important to ensure that the principle of equivalence will continue to apply, so that even where food production processes in the EU and US are not identical, they will provide equivalent guarantees regarding the standards of production. This principle is already enshrined under the World Trade Organisation Agreement on Agriculture, and is also recognised by both sides as the basis for a TTIP agreement.
Equally, it is important that both the EU and United States retain the policy space to restrict certain practices and processes on social and ethical grounds and this is also recognised, in principle, by both sides. For example, the EU Commission has made it clear that it will not allow the importation of hormone treated meat into the EU and this is well understood by the US side.
Thirteen rounds of negotiations have taken place to date, with the latest taking place in New York at the end of April. Overall it has been described as a good round, with detailed discussions on all topics, aimed at developing consolidated texts. The ambition is to see the negotiations finalised this year, but this may not be possible given the pace of negotiations to date, the amount of issues still unresolved, and external factors such as the US Presidential election campaign and the ratification by Congress of the Trans-Pacific Partnership agreement. The European Commission is also continuing to press for more effective engagement from the US on non-tariff barriers - including sanitary and phytosanitary measures-in the interests of securing a balanced overall deal.
The fourteenth round takes place this week in Brussels, and I hope that further progress can be made in the interests of achieving a timely conclusion.
239. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine his plans to combat the impact of a British exit from the European Union; and if he will make a statement on the matter. [21575/16]
View answerThe decision of the UK to leave the EU is one that creates considerable challenges for the agri-food sector. The UK is by far our largest trading partner. Last year we exported almost €5.1 billion worth of agricultural products. This included more than €1.1 billion in beef products and almost €970 million in dairy products. Ireland is also the UK’s largest destination for its food exports - worth €3.8 billion last year. This bilateral trade takes place on the basis of harmonised EU rules on animal and public health and labelling, without complex certification, quota limits or customs duties and tariffs. And it is underpinned by the vital support of the CAP budget, to which the UK is a significant net contributor.
Given these linkages, and as the UK is a net food importer, both countries have a strong interest in maintaining a close agri-food trading relationship. In addition, the resilience of the Irish agri-food sector is well recognised, and this, together with the strong commercial relationships built up over years of trading, will help us to negotiate our way though the challenges ahead.
It is important also to bear in mind that the precise implications of the referendum outcome will depend on the trade and other arrangements ultimately negotiated between the EU and the UK. These negotiations may take up to two years, and perhaps longer, and over that period existing arrangements will continue to apply.
Nevertheless, my Department has engaged in detailed contingency planning for the possibility of this result, and has published a summary of the key actions we are taking to address the contingencies arising from the UK’s decision.
The most immediate concerns for exporters centre on Euro-Sterling exchange rates. It should be noted that the fall in the value of Sterling against the Euro, while significant, is not unprecedented. Nevertheless, a sustained period of currency volatility could be of concern. In that regard, the Central Bank of Ireland has pre-established contingency plans to deal with market volatility surrounding the referendum result. The Bank will engage with the Department of Finance and individual financial institutions regarding potential risks. Actions by ECB and other global actors will be monitored closely.
I have also asked the relevant agencies, including Bord Bia and Enterprise Ireland, to provide practical guidance to SMEs. Last week Bord Bia announced a number of measures to support food and drink businesses. These measures cover areas such as managing volatility impacts, providing consumer and market insight, deepening customer engagement and extending market reach, with the aim of helping companies maintain their competitiveness. Similar support is also being provided by Enterprise Ireland.
Aside from currency fluctuations, the main areas in which potential impacts are foreseen are in relation to tariffs and trade, the EU budget, regulations and standards, and customs controls and certification, while complex issues also arise for the fisheries sector.
However, we must remember that our trading relationship with the UK is not altered in any way until the negotiation process that will dictate the terms and conditions of the UK’s departure is completed.
In the meantime, and as part of our overall contingency planning, I have taken a number of measures to ensure a sensible, coherent approach is adopted, namely:
- I have established a dedicated unit in my Department to work on all of the issues that I have mentioned;
- I have convened a Consultative Committee of stakeholders, which met for the first time last week, to ensure a full exchange of information as the negotiations proceed;
- I am also ensuring that the response of the relevant agencies is fully coordinated through a contact group established under the Food Wise 2025 High Level Implementation Committee, and The Department will continue to feed into the central Contingency Framework being co-ordinated by the Department of the Taoiseach.
