Dáil Éireann Debate, Tuesday - 13 February 2018
505. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the future prospects for the dairy sector with particular reference to export markets; the extent to which the sector continues to achieve high quality and competitiveness on international markets; and if he will make a statement on the matter. [7452/18]
View answerThe Deputy will be aware that Ireland’s plans for growth in the dairy sector are formally set out in Food Wise 2025, Ireland’s blueprint for the overall agrifood sector, where an all of sector agreed approach is set out including actions, benchmarks and targets for the dairy and other sectors. Notwithstanding challenges on the horizon, amongst which Brexit is paramount, stakeholders in the Irish dairy sector are well placed to benefit from expanding global demand.
Analysis from Bord Bia and my Department, both based on CSO data, demonstrate the resilience of the Irish food and drink export sector, and the dairy export sector in particular. Whilst full year CSO data becomes available towards the middle of this month estimates made by Bord Bia for their Annual Performance and Prospects publication provides a positive assessment of Ireland’s performance in 2017 as well as our prospects for 2018 in both the food and drink sector, and the dairy sector in particular.
2017 was the eighth consecutive year of export growth for the food and drink sector as a whole, with the dairy sector, which comprises more than a third of the total, having the strongest performers in terms of export growth for the year. Bord Bia analysis indicated that for the year as a whole the value of food and drink exports is estimated to have increased by 13%, (€1.5bn) to €12.6bn representing growth of almost 60% or €4.7bn since 2010.
Furthermore, driven by increased production and higher dairy market returns, the analysis found that Irish dairy exports increased by 19 percent in 2017 to €4.02 billion, an increase of €655 million. It should be noted that this figure as used by Bord Bia excludes dairy based Prepared Consumer foods as well as enriched dairy based powders which, if included, increases this export figure in respect of dairy related products by a further €900 million approximately.
In terms of prospects for 2018, as a small, open economy, Ireland’s relationship with trading partners around the world is a key driver of our success in this global food business. Based on this we can say that the prospects for dairy exports in 2018 look positive. The rates of growth recorded in 2017 for key product areas and the ongoing demand levels in Europe and international markets for powder based products, butter and cheese bode well, as does the fact that wholesale prices remain very high reflecting international demand.
Ireland exports more than 85% of our milk and dairy produce to markets all around the world. In the context of the Food Wise strategy, and as a key part of our Brexit response I, with my Department and Bord Bia, will continue efforts to widen our access to third country markets, as well as deepen existing trading relationships, including through inward and outward trade missions.
