In consideration of the beef export profile for 2002, account must be taken of the enormous increase in the level of exports to the United Kingdom, expected to be in the order of 230,000 tonnes. It has always been my policy that the beef industry should develop its exports to European Union markets.
As regards third country markets, following the BSE crisis late in 2000, many such markets imposed bans on imports of European beef. While it is clear that these restrictions were imposed Europe-wide against the background of a crisis in mainland Europe and did not adequately reflect the many levels of BSE controls in place in Ireland at the time, the net effect for Irish exporters was that almost all our significant non-EU markets for beef, with the exception of Russia, were closed.
As a consequence of the restrictions on European beef imports imposed by third countries, the EU introduced on 1 January 2001 a purchase for destruction scheme which resulted in the removal of 278,000 cattle from the supply chain in 2001. Furthermore, exports of beef to the UK in 2001 amounted to 210,000 tonnes, which was an increase of 100,000 tonnes on exports to that market in 2000.
Since that time, no effort has been spared at political, diplomatic and technical level to have those markets reopened. As a result of these efforts, Egypt has lifted its restriction on imports of Irish beef and my Department has agreed with the Egyptian authorities the veterinary issues to permit trade to recommence. Following my representations to Commissioner Fischler, the EU Commission decided recently to increase export refunds for Egypt by up to 30%. This new special high rate of export refunds will make Irish beef more competitive on the Egyptian market and should help bring about the resumption of trade to a very important traditional market.