Dáil Éireann Debate, Wednesday - 30 May 2018
51. Deputy Aindrias Moynihan asked the Minister for Agriculture, Food and the Marine the efforts he is making to develop new export markets in the context of Brexit; and if he will make a statement on the matter. [23767/18]
Amharc ar fhreagraThe agrifood sector is a hugely significant component of our exports and most exposed to Brexit, given that 35% of all food exports go to the United Kingdom. Last year they were worth over €4.5 billion. Farmers are very concerned about the risks associated with Brexit. Some 51% of our beef and 24% of dairy products go to the United Kingdom. While cheddar cheese, for example, is more attractive in the United Kingdom, it is not so much in other areas. What efforts are being made to ensure alternative markets will be available for beef, dairy and agrifood exports in general?
The pursuit and development of new markets for Irish agrifood exports are ongoing and central components of the strategic development of the agrifood sector, as evidenced by its placement at the centre of Food Wise 2025, the industry’s strategy for development in the coming decade. This is all the more relevant after the United Kingdom’s decision to leave the European Union, which presents significant new challenges for the agrifood sector, in particular.
Food Wise 2025 outlines the huge potential for growth in agrifood exports to new and emerging markets, particularly in Asia, Africa and the Persian Gulf region. In keeping with the priorities outlined in Food Wise 2025, I led a very successful trade mission in February 2017 to the Persian Gulf region. It covered the Kingdom of Saudi Arabia and the United Arab Emirates and was followed by an extensive trade mission to the United States and Mexico in June. Both markets offer many elements that are very attractive to Irish exporters. The United States is the largest food and beverage market in the world and has a population of 324 million people. Around 35 million Americans also claim Irish ancestry. Mexico has a population of 127 million, making it the 11th largest country in the world in population terms and the 15th largest economy in the world, with projections that it will move into the top five by 2050.
Later in 2017, during a trade mission to Japan and South Korea in November, I was accompanied by 40 representatives of the food sector, as well as by experts from my Department, the CEO of Bord Bia and senior representatives from Enterprise Ireland and Teagasc. It was an opportune time to bring a delegation of Ireland’s food leaders to that part of the world, given that the European Union had concluded a free trade agreement with South Korea, as well as concluding an economic partnership agreement with Japan in December 2017. Japan and South Korea are markets of high potential for beef, pigmeat and sheepmeat exports; therefore, it is important that we raise the profile of Irish agrifood enterprises that already have access to these markets and make progress in negotiating access for others.
Following a further trade mission to the United States and Canada in February, earlier this month I led a trade mission to China and Hong Kong. It was an extremely successful mission in the development of our ever-growing partnership with China. For example, being present at one of the world’s largest food trade exhibitions in Shanghai allowed me to reinforce the positive message about the quality and sustainability of Irish agrifood exports to Asian buyers. I was also fortunate to secure meetings with three senior Chinese ministers. There is a clear ambition on both sides to build further co-operation between Ireland and China on many levels, including trade. I will continue to do all I can to maximise that potential.
It is important to acknowledge the progress made in markets in the Persian Gulf and China which possibly offer alternative markets. However, having so much beef going to the United Kingdom is a grave concern for beef farmers. What amount of beef does the Minister expect to be exported to the alternative markets and how soon will they be flourishing? Anybody who is involved in agriculture realises things do not happen overnight. The same applies to markets. How soon will they be ready? What timeframe and targets has the Minister set out? Will they be able to accommodate such a large amount, given that we export so much beef to the United Kingdom?
The second issue is the level of staff and energy and effort being put into this matter. Is the Minister satisfied that there is an adequate number of staff involved? For example, Bord Bia hired only seven additional staff last year and the Department had permission to assign only eight staff from existing resources to the dedicated Brexit unit. Is the Minister satisfied that an adequate number of staff are available in that regard?
It is important to state geography should always be a determinant of where we trade. It is our hope and ambition that the United Kingdom will always remain an important market for us. In that regard, we are putting much effort into working with our retail partners in the United Kingdom. It is the market we understand most, the one we can access most efficiently financially and the best paying beef market in the world. We are not walking away from it. However, in the context of Brexit and given that we do not know what the future trading relationship will be, it is incumbent on us to have other market opportunities. Where the industry chooses to sell thereafter is an issue for it to decide. It is not for me to tell the industry where it should sell. Any good industry will sell where the margin is highest and to the market that offers the best opportunity to deliver a price to the primary consumer.
China is an enormous market that has become our second biggest market in the context of dairy and pig meat. I do not know whether it will become the same for beef and I think it is idle to speculate. It is an enormous market on which we will put significant emphasis. Opening up that market and other markets is where it is at in terms of the obligations and responsibility of the Department. Where industry chooses to sell thereafter is an issue for it so I am not going to say we sell "X" amount of tonnes to China. It is open. It could be very important given it has an emerging middle class with higher disposal incomes and westernised dietary habits. They are all important. Where industry chooses to sell is not something we control. I am satisfied that there are adequate resources in my Department and Bord Bia.
Much of the Minister's target is aimed at Food Wise 2025. Has there been a review of that in view of Brexit? I return to the question concerning the amount of beef and the Minister's targets or what he envisages needs to be replaced with regard to the UK market. If there is a hard Brexit, and the Central Bank has outlined how it would see any red tape putting a huge burden on exports to the UK, particularly fresh food such as beef, and prepared food, it will be less attractive and more difficult. What efforts are being made to ensure it will be more straightforward for people who want to continue trading into the UK market?
The subtext behind the idea that we would review our Food Wise targets seems to be that we should dismantle our ambition. I do not share that belief. In fact, I think our ambition is eminently achievable. Never was it more important to have a plan like Food Wise than in the current situation. I chair the implementation committee of Food Wise. We meet with all the relevant stakeholders. There is no appetite for dismantling our ambition. Obviously, there is added urgency in the context of Brexit and that is why we have given more resources to explore new market opportunities.
Our declared ambition with regard to Brexit is to have as close a trading relationship with the UK as possible after it departs. We think it should always be an important market for us, which is why we are working might and main to achieve that objective. We do not control all of the aces in the context of a UK Government that delivers mixed messages but seems to say that it wants to leave the customs union and Single Market. This is a challenge in terms of the continued level of market access we currently enjoy where the price in that market is probably globally the best, particularly for beef, so we are looking at new market opportunities like China.
