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Beef Industry

Dáil Éireann Debate, Tuesday - 18 October 2016

Tuesday, 18 October 2016

Ceisteanna (580)

Charlie McConalogue

Ceist:

580. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine his plans on market access setting out the planned volumes in view of the fact that the UK is Ireland's largest export market and given the Brexit referendum decision; his plans to return beef prices to viable levels of €4.00 to €4.50/kg as set out by Teagasc; and if he will make a statement on the matter. [30347/16]

Amharc ar fhreagra

Freagraí scríofa

Overall Irish agri-food exports have increased from less than €8 billion in 2010 to an estimated €10.8 billion in 2015. The target in Food Wise 2025 is to increase the overall value of agri-food exports by 85% to €19 billion by 2025. As an exporting country, accessing new markets is crucial to the long-term sustainability of our agri sector. 2015 was a very successful year for beef exports. According to the CSO, overall exports of beef totalled some €2.2 billion. Beef exports to the end of July 2016 are running at some €1.3 billion.

My Department works very closely with the Department of Foreign Affairs and Trade, Bord Bia, the industry and the European Commission on a wide range of market access issues. The Department continually monitors trade statistics produced by Bord Bia and the CSO, in order to analyse the destination of exports and, together with industry, to identify new market opportunities. Third Country markets are an increasingly important alternative outlet for the industry.  I am acutely aware of the need to develop new and alternative markets, given the changing global demographics and emerging economies in Asia and elsewhere. Indeed this is a crucial component of the Food Wise 2025 Strategy and has been given an added impetus by the outcome of the UK referendum.  My Department had been preparing for the possibility of Brexit since well before the June 23 vote, including in relation to the impacts on the beef sector. 

I will continue to work with stakeholders to try and more generally raise the profile of the Irish agri-food sector generally, in emerging markets in the Far East, North Africa, the Gulf States and elsewhere. In this context Minister Doyle and I lead a successful Trade Mission to China, Vietnam, South Korea and Singapore in September to further promote Irish food and drink in the region. This Mission resulted in positive progress in relation to the next steps in terms of gaining beef market access to China, South Korea and Vietnam, including inter alia a commitment by Chinese officials in AQSIQ to expedite consideration of a technical inspection report from their visit to Ireland earlier this year as well as the submission of detailed beef questionnaires to the relevant authorities in South Korea and Vietnam.    

Next month, I intend to lead a Trade Mission to Morocco and Algeria, with a focus on live cattle exports. Live cattle exports to Turkey also commenced last month following our recent approval to export live cattle there.

 My Department has also re-configured its network of agricultural attachés abroad, with an enhanced role in relation in agri-food trade and Bord Bia has expanded its network of offices abroad, with a focus on new and emerging markets, including in South East Asia. This will also enhance our identification of new markets abroad.

Budget 2017 financially underpins the Department’s mitigation efforts through strategic investment in key areas of the Department, in its agencies and in the agri-food sector. It provides for €52 million for the Beef Data and Genomics Programme in 2017 to continue its commitment to suckler beef farmers. However, my role in relation to the beef sector is to create a policy and support environment that will allow it to flourish in line with normal market principles. Questions of price are ultimately matters to be determined between the purchasers and the sellers of cattle. It is neither appropriate nor possible for me or any other Minister for Agriculture in the EU, to intervene directly on these issues. Cattle prices are determined by supply / demand dynamics which are in turn influenced by the seasonality of production, the length of the production lifecycle and market conditions such as retail promotions, consumer confidence, competition with other meats and the overall macroeconomic situation.

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