Dáil Éireann Debate, Thursday - 10 May 2012
154 Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which Irish beef, lamb, pig meat and poultry exports remain competitive on EU and world markets; and if he will make a statement on the matter. [23565/12]
Amharc ar fhreagra156 Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent of any new export markets for Irish beef, lamb and pig meat or poultry established in recent times; and if he will make a statement on the matter. [23567/12]
Amharc ar fhreagra159 Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent to which he expects new overseas markets to open up for Irish meat and diary exports; and if he will make a statement on the matter. [23570/12]
Amharc ar fhreagra162 Deputy Bernard J. Durkan asked the Minister for Agriculture, Food and the Marine the extent of growth in the beef, lamb, pig meat, poultry, diary and fish processing sectors in each of the past three years to date; and if he will make a statement on the matter. [23573/12]
Amharc ar fhreagraI propose to take Questions Nos. 154, 156, 159 and 162 together.
Exports in the agri food sector have performed strongly in recent years, and I believe that the Irish agri food sector is well positioned to take advantage of future increases in demand arising from increasing global population.
Dairy
Exports of dairy products in 2011 were valued at €2.66 billion, an increase of 17% on the previous year, which had seen a 13% increase on 2010.
The Food Harvest 2020 report sets out the strategic vision for the agri-food and fishing sector. From a dairying perspective, the ending of milk quotas in 2015 represents an exceptional opportunity to increase milk output, and Food Harvest has targeted a 50% increase in milk production in the period to 2020. This target is ambitious but I also believe it is realistic, because the dairy sector has the capability to expand at producer and at processor level.
In that context, the Dairy Expansion Activation Group established to identify specific actions needed to deliver on the Food Harvest targets, has produced a Road Map setting out 55 actions required to achieve the 50% increase in milk production. Key areas for action include the identification of markets, the improvement of efficiency at processing level and improving production efficiency at farm level. While many of these actions will be taken at commercial level, my Department and its agencies are working with industry to provide a framework to support the necessary development, and I am personally chairing the High Level Implementation Committee, in order to monitor progress and take appropriate action to support the successful implementation of Food Harvest 2020.
Beef
Following a stabilisation in the European beef market during the second half of 2010, the supply/demand balance improved further in 2011 as a combination of increased demand for European beef products on international markets and lower imports from South America helped offset ongoing sluggish consumer demand. Cattle prices across Europe increased significantly as the year progressed reflecting the EU position changing from being a net importer to net exporter of beef.
Total Irish beef production grew by almost 4% between 2008 and 2011. Ireland exports over 90% of its production and some 96% of exports go to other EU Member States. The table below details both the volume and value of beef exports since 2007:
|
Year |
Volume (tonnes cwe) |
Value €(billion) |
|
2009 |
460,000 |
1.4 |
|
2010 |
505,000 |
1.5 |
|
2011 |
510,000 |
1.8 |
*Source: Bord Bia estimates.
Beef exports grew by €230m (or 15%) in 2011 on foot of an 18% increase in average cattle prices caused by a fall in finished cattle supplies coupled with strong demand on key export markets. The United Kingdom remains our largest single market for beef products. Shipments to the UK in 2011 increased by €90m to €850m in value and accounted for half of total beef exports by volume for the year. Exports to Continental EU markets were largely maintained in 2011 with trade valued at €920m. Beef exports to international markets benefited from stronger import demand with shipments rising by around 30% to approximately 19,000 tonnes. This reflected stronger demand in Russia as well as increased trade to Switzerland, South Africa and the Middle East.
The outlook for the European beef market remains reasonably good for 2012 with a 2% drop in output among the EU-15 Member States anticipated. This forecast points to an ongoing relatively tight supply situation in the European market subject to only a modest increase in imports. However, prospects for consumer demand remain uncertain with much likely to depend on economic developments. The key challenge facing the Irish beef sector is to maintain and expand our share of EU premium markets in the current economic climate.
Expanding global demand for food clearly presents enormous opportunities for the agri-food sector as a whole. The Food Harvest 2020 reports targets a 20% growth in the output value of the beef sector and recommends that this can be achieved by adopting new smart approaches throughout the supply chain focusing primarily on improving efficiency and product quality at farm level. This will involve an increasing number of technically proficient and market oriented beef producers. In order to improve profitability in beef production, I am funding a Beef Technology Adoption Programme to equip farmers with the knowledge and skills necessary to improve the productivity of their beef enterprises. I expect that the payback on this investment will deliver real gains to individual producers and upgrade beef production at national level in line with the 2020 strategy in much the same way as the Dairy Efficiency Programme has boosted the performance of that sector in recent years.
Fish processing
I am advised by BIM that revenue in the fish processing sector increased from an estimated €709 million in 2009, to €712 million in 2010 and €749 million in 2011. This growth was driven by increases in export sales of €98 million over the period, more than off-setting a decline in value of domestic sales of €58 million.
Pigmeat
The pigmeat sector in Ireland has remained resilient in recent years in the face of considerable difficulties. Production increased by over 17% between 2008 and 2011. The sector remains the third largest individual component of the agri-food industry and supports approximately 7,000 jobs, many of which are in rural communities. Production, prices and exports increased significantly in 2011, and robust domestic demand coupled with a strong performance in export markets, should help ensure progress in the coming years.
The table below details both the volume and value of pigmeat exports since 2009:
|
Year |
Volume (tonnes) |
Value € |
|
2009 |
127,000 |
290m |
|
2010 |
147,000 |
317m |
|
2011 |
168,000 (est.) |
395m |
The UK has consistently been the largest export market for Irish pigmeat, accounting for more than 40% of export volume and over 60% in value. Trade to Continental Europe has remained strong notwithstanding the current economic climate, with over a quarter of volume and almost one fifth in value terms destined for this market. Third Country trade grew considerably in 2011, with volumes in China, Russia and Japan increasing significantly. Improved access to these markets, together with growing demand, resulted in almost one-third of volume and a fifth in value being sold internationally.
Pigmeat remains the most consumed meat worldwide with demand expected to continue to increase in the medium term. This will continue to present opportunities for Irish producers. Food Harvest 2020 sets ambitious targets for the pig sector, including a 50% increase in the value of output by 2020. Increased sow productivity will be the key driver of this growth together with an increase in the size of the sow herd. Work towards the achievement of these targets is ongoing.
Poultry
The Irish poultry market has remained relatively stable in recent years. The sector accounts for approximately 3% of gross agricultural output with a farm gate value of approximately €150 million. The indigenous industry remains under competitive pressure from imports.
Export values increased by 3% in 2011 to €210 million arresting the decline experienced in recent years. Most of this increase occurred in European and Asian markets.
Sheepmeat
The table below details both the volume and value of sheepmeat exports since 2009:
|
Year |
Volume (tonnes) |
Value € |
|
2009 |
46,400 |
160m |
|
2010 |
35,500 |
163m |
|
2011 |
36,500 (est.) |
180m |
There are signs of a recovery in the sheep industry in Ireland over the past two years. In 2010, sheep prices were up by an average of 17% over the previous year and in 2011 prices were up by 9% over 2010 levels. The recovery in sheep prices has helped to restore the fortunes of the sector which is now experiencing a recovery in flock numbers which is necessary to ensure the long term future of the sector. Sheepmeat exporters have traditionally looked to France, which is still the biggest export market for Irish sheepmeat although other markets in northern Europe in particular have emerged in recent years. However, with meat prices increasing across the world, exporters are beginning to look at third country markets as potential outlets for Irish sheepmeat.
Food Harvest 2020 sets a target of 20% increase in output value for the sheep sector by 2010. The good prices available for sheep over the past two years should encourage farmers to increase production in the future, thus enabling the Food Harvest 2020 targets to be met.
Market Access to Third Countries for meat and dairy
I have been very active in developing relationships in new and expanding markets in order to build the kind of confidence in Irish production and control systems that provide a platform for long-term trading relationships in the future. As part of that effort, I recently headed a trade mission to China to further develop this important relationship, and to meet my ministerial counterparts in the Agriculture and Quarantine Ministries to help raise the profile of the Irish agri-food industry, including the dairy sector, in China and to draw the attention of the Chinese to the issue of access for Irish beef and sheepmeat to the Chinese market.
Ireland already has access for dairy products to markets worldwide and exports such products to over eighty countries. Nonetheless I am working 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 and elsewhere.
While the great majority of our meat exports are destined for other EU member states, it is always beneficial to have a wide range of outlets available for our high quality food products. To this end my Department engages with Bord Bia and the Department of Foreign Affairs, in consultation with the industry, to secure access to more third country outlets.
In relation to meat, we reached agreements over recent years with the authorities in Israel, Tunisia, Morocco, Turkey, Egypt and Singapore which allow for the export of Irish beef. In 2010 the Russian and Chinese markets were re-opened to Irish pork following the dioxin crisis. My Department has also hosted visits in the past few years by official delegations from Morocco (beef access), Israel (beef and sheepmeat access), Philippines (beef access), Australia (pork access), China (pork and beef access), Egypt (beef access), South Korea (pork access) and Iran (beef and sheepmeat access) as part of our efforts to gain access for Irish meats to these rapidly growing markets. There are ongoing discussions at EU level with the Russian Federation which, it is hoped, will allow for the export of sheepmeat from EU counties (including Ireland), in the future.
I am awaiting official confirmation from the Libyan authorities on the lifting of their 16 year ban on the importation of beef from Ireland and other EU countries. Once the lifting of the ban is confirmed, we will seek to reach agreement on the terms of a veterinary health certificate which will allow trade to resume.
I recently welcomed the publication on 16 March by the US Department of Agriculture (USDA) of their draft BSE rule which essentially proposes to align the US BSE rules with those of the World Organisation for Animal Health (OIE). The public consultation period for the BSE rule is scheduled to end on 15 May, but may be extended depending on the volume of submissions received. My department will shortly be submitting its comments to the USDA on the BSE rule. I will also be visiting the US in June and I look forward to raising this important issue with my counterpart there during that visit.
Longer term targets for Irish meat access include China for beef and lamb, and Japan for beef. Other targeted markets include access for Irish beef and lamb to the North African and Middle East regions. My Department is engaging actively with the authorities in these countries in order to secure access for these products. There is a strong demand for meat globally and my Department remains focused, in consultation with the industry, on ensuring that Irish exporters are able to take full advantage of the opportunities that arise.
