South American beef quota request could have ‘damaging impact’

SOUTH AMERICAN countries are seeking beef quota levels which could have a severely damaging impact on Irish agriculture, according to Agriculture Minister Brendan Smith.

Brazil has surprised most EU farming stakeholders by suggesting quota levels for beef, port and poultry far beyond the levels proposed at the ongoing World Trade Organisation talks.

The increased food quota suggestion was welcomed by the US, which is seeking greater access to markets such as Brazil, China and India for its manufactured goods. Most EU food industry leaders are resisting the suggestion.

Mr Smith said: “The beef quotas sought by the Mercosur countries are simply not acceptable. These demands would certainly target the market for high-value and frozen beef and would seriously undermine Ireland’s beef industry.

“We have consistently conveyed our serious concerns to the EU Commission about the possible impact of a trade agreement between the EU and the Mercosur group of South American countries and, in particular, about the impact that any agreement would have on the Irish beef sector.”

The concerns of the Irish Government have been raised, not alone with the EU Commission, but with various other member states, in bilateral meetings, as well as at the EU Agriculture Council.

In 2010, the value of Irish beef exports rose by an 8% to €1.51bn. Some 89% of output is exported. More than 98% of exports went to important EU markets in 2010 and, across Europe, Irish beef is stocked in three or more of the top 10 retailers in each major market and in over 70 retailers in total.

Mr Smith said: “While the Common Agriculture Policy ensures that EU beef is produced in a sustainable manner, with reduced carbon emissions, the same is not necessarily the case elsewhere and it makes no environmental sense for the EU to allow its production to be displaced by less sustainable systems.”

The IFA also makes this point on its online open forum for its members, noting that if additional volumes of lower price Brazilian beef imports were accepted into the EU market, without meeting EU-equivalent standards, it would have devastating consequences for Ireland, which is the largest beef exporter in the EU.

Irish beef exports are worth more than €1.6 billion to the Irish economy annually. The IFA has calculated that a deal could cost the beef and livestock sector €350m as well as inflicting damage on the European beef sector amounting to billions of euro.

IFA president John Bryan said: “A bilateral trade deal between the EU and South American countries, including Brazil, known as Mercosur, would inflict severe financial damage on Irish and European agriculture. At particular risk is our €2bn livestock and beef sector; however a deal will also have a very negative impact on our dairy, cereals, pigmeat and poultry sectors.

“The closure of our sugar industry must be a clear lesson that any Mercosur trade deal will devastate our beef and livestock industry and destroy our prospects of achieving the Food Harvest 2020 targets.”