Ornua said that an European Union agri-food mission to Brazil this week will help the co-op to explore new market opportunities for Irish dairy.

Ornua is among 70 delegates from the European food and drinks industry participating in the week-long event being led by Commissioner for Agriculture and Food, Christophe Hansen.

A spokesperson for Ornua told Agriland: "As Ireland’s largest exporter of dairy products, the opportunity to visit Brazil, South America’s largest economy, adds to our ongoing scoping activity to explore new opportunities for Irish dairy.

"While Brazil, to date, has not been a strategic priority market for Ornua, we are always focused on diversifying our market presence to expand and grow the Irish dairy story and maximise value for the sector.

Irish delegation

According to the European Commission, the purpose of the visit is to facilitate European agricultural food and beverage exports to Brazil and expand their presence on this market.

The Irish delegation also includes Bord Bia and the Dublin-headquartered company, Intrepid Spirits.

Bord Bia said it is attending the trade mission to Brazil to gain insights into the market in support of future opportunities for European agricultural exports.

"Declan Fennell is attending in his role as manager of EU co-funded campaigns, which promote Irish and European agricultural produce in selected markets worldwide.

"Last year, Ireland exported just over €12 million in food and drink to Brazil, primarily dairy products," a Bord Bia spokesperson said.

Brazil

Brazil is the largest economy in Latin America, and by far the largest economy of the four Mercosur countries (Argentina, Brazil, Uruguay, and Paraguay).

Brazil accounts for 220 million consumers out of the 270 million from the four Mercosur countries.

However, the EU Commission said that "so far, Brazil’s potential as major destination for EU agri-food exports remains largely untapped".

Exports

EU agri-food exports to the region represent currently only about 6% in value of all EU exports.

In 2024, the EU's exports to the four Mercosur countries amounted to €53.3 billion, while Mercosur's exports to the EU totalled €57 billion, resulting in a slight surplus in favour of Mercosur.

Last year, EU agri-food exports to Mercosur were worth €3.3 billion.

Mercosur's biggest exports to the EU in 2024 were agricultural products (42.7% of total exports), mineral products (30.5%), and pulp and paper (6.8%).

The commission said that this week's visit to Brazil will "focus on providing market intelligence in the food and beverage sector, business to business activities, as well as retail and site visits".

Mercosur

Last month, the EU Commission put forward its proposal to ratify the controversial EU-Mercosur deal, formally called the EU-Mercosur Partnership Agreement (EMPA).

The deal needs to secure approval from the European Parliament and the Council of the EU before it can be ratified.

The deal would create the world's biggest free trade zone, covering a market of over 700 million consumers.

The commission estimates the agreement can increase EU annual exports to the Mercosur countries of Argentina, Brazil, Uruguay, and Paraguay by up to 39% (€49 billion), supporting more than 440,000 jobs across Europe.

For some EU exports of dairy products, zero duties will gradually apply within quotas: cheese (30,000t), milk powder (10,000t) and infant formula (5,000t).

However, farm organisations have raised concerns about the deal allowing 99,000t of Mercosur beef to enter the EU market with a 7.5% duty.

Earlier this month, the EU Commission proposed a regulation to strengthen protections for EU farmers under the deal.

Minister for Agriculture, Food and the Marine, Minister Martin Heydon, recently told the Dáil that Irish officials are currently examining the proposed Mercosur bilateral safeguard clause "in detail".