Dáil Éireann Debate, Tuesday - 13 February 2018
507. Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine if he remains satisfied that Irish beef and beef products on European markets are not likely to be affected by imports from third countries; and if he will make a statement on the matter. [7454/18]
View answerIreland is the largest exporter of beef in the EU, with more than 90% of such exports (more than 80% of total production) sold in EU markets, including the UK.
Such exports occur in parallel with imports from 3rd countries, which, in 2016 for example, amounted to approximately 330,000 tonnes. However, the creation of further preferential import arrangements for additional volumes of beef, for example from the Mercosur bloc, which has significantly lower production costs and different production standards, has the potential to put downward pressure on EU prices in a sector where margins are low or negative without EU subsidies.
The Commission’s own assessment of the cumulative impact of trade deals shows that the beef sector is particularly vulnerable and that Ireland stands to be most affected. This assessment did not take account of Brexit which could, depending on the outcome, have a dramatic additional negative impact on the EU beef sector. Some 51% of Irish beef exports are to the UK.
We also know that beef consumption in the EU is relatively static. Gross production in 2016 was approximately 7.88 million tonnes with consumption reaching 7.941 million tonnes. The most acute concern however, relates to the high value cuts market of between 600,000 and 700,000 tonnes, which is likely to be targeted by Mercosur importers. These represent approx 8% of carcase weight but up to 30% of carcase value.
As a small open economy, Ireland supports trade liberalisation and recognises the benefits of trade agreements with third countries, which can potentially give rise to increased exports and job creation. However, such agreements must be balanced and must serve both our offensive and defensive interests. I will continue to protect the interests of Irish farmers in negotiations on such matters in the future.
