I am acutely aware of the challenges being posed by the UK vote on Brexit for our agrifood sector. For the last number of months Government has been actively engaged in assessing the impact of the Brexit vote, consulting with appropriate stakeholders and engaging with the relevant politicians and institutions to ensure that our priorities are well understood by those likely to be in a position of influence in the course of the negotiations. This work is being co-ordinated by the Department of the Taoiseach.
The agrifood sector is of critical importance to our economy and its regional spread means it underpins the socio-economic development of rural areas in particular. The sector employed approximately 173,000 people (i.e. 8.6% of total employment) in 2016, and the total value of agrifood exports was almost €12.2 billion.
There is no doubt that the UK’s decision to leave the EU reinforces the need to develop as many outlets for our agrifood exports as possible, in order to minimise our dependence on any one market. Indeed this principle of market development is already a key component of Food Wise 2025. We have been very active in recent years in efforts to diversify markets, and in aiming to respond to consumer demands in emerging markets.
While Ireland exported some €2.4 billion worth of beef to approximately 70 countries last year, I am still very cognisant of the need both to expand the number of beef markets but also to enhance existing market access given the current exposure to the UK beef market.
In terms of the beef market access, 2016 saw the extension of our access to the US, as well as the opening of the Canadian, New Zealand and Israeli beef markets. So far 2017 has seen the re-opening of the Egyptian market to Irish beef although we need to complete the remaining technical steps before the resumption of beef exports. The recent Trade Mission to Saudi Arabia and the United Arab Emirates saw the extension of our beef access to Saudi Arabia following a period of detailed engagement with the Saudi Arabian Food and Drug Authority (SFDA). Priorities in terms of market access for 2017 include further advancing beef access to China which is a very high priority. The Department is also pursuing beef access to a number of other Third Countries including South Korea, Vietnam, Thailand and Ukraine, and is working to simplify certification procedures in a number of markets to which we already have access.
In relation to dairy, Irish dairy products have a highly rated and hard earned reputation in terms of quality, safety and sustainability, and this gives them a competitive edge in markets over the world. My Department, in conjunction with other stakeholders, including the Irish dairy companies and agencies such as Bord Bia, are playing a key role in building the market for Irish dairy. In 2016 Ireland exported dairy products to over 130 countries. Against the backdrop of our efforts to significantly increase dairy output and grow the sector, export market diversification is obviously of the upmost importance, and this is particularly true in the context of a post-Brexit scenario.
In relation to the Irish seafood industry Brexit poses a very significant threat. On average, over one third of our current landings are from inside the UK zone. While some benefits may accrue in terms of increasing market share in EU Member States, overall these will be more than offset by three main threats - (i) loss of access, (ii) substantial loss of quota share and (iii) displacement into our zone –as well as a high level of uncertainty in the short term. The Irish fishing industry is focussed on these three threats.
My Department is also working on expanding market access for sheepmeat, pigmeat, poultry and cooked meats across a range of markets. On sheepmeat the market in Iran opened in 2016. Access to China is a high priority for the industry but cannot be gained until after beef access with China has been progressed further.
I can assure the Deputy that I consider it vitally important that our key message of remaining as close as possible to the current trading arrangements is heard and understood across Europe, and for that reason the extensive consultations currently being undertaken with our EU counterparts at political and official levels will continue, and indeed intensify, over the coming months.
