Any changes to CAP ‘risks future viability’ of drystock sector

ANY changes to the Common Agricultural Policy system post 2013 could risk undermining the future viability of drystock farmers in this country.

Irish Cattle and Sheep Farmers Association Munster vice president Edmond Phelan said that if you remove subsidies, many Irish farmers would be farming at a loss at present, regardless of size.

A poor return for beef, as well as a collapse in milk and grain prices, will inevitably result in a minus figure on farm accounts this year. This is more pronounced in the drystock sector. “According to the 2008 National Farm Survey, the average cattle farmer will loose €6,463 before subsides.

“This results from the fact that the average cost of production of €20,400 is exceeding outputs of €13,937 by that amount,” Mr Phelan said.

He said direct payments to these farmers came to €14,195, which was 183% of income on these farms.

This will only leave a profit of €7,732 — just 23% of the average industrial wage in Ireland (€32,951 in 2008), he said.

“If payments are reduced post CAP 2013, this type of cattle farming, which accounts for a quarter of all farm types in the country, will disappear.”

Mr Phelan said to protect our beef and sheep industry, it is vital the main principles of the subsidy system remain unchanged.

“If beef farmers are to come anywhere close to getting the average industrial wage, and make up the shortfall of around €25,000, farmers with 100 cattle each will have to increase their margins by €250 per animal.

“This can really only be achieved by a better return from the market as it is difficult to see where costs can be further curtailed.

“Sheep farmers share a similar plight and there is now urgency for realistic prices to be demanded and received in the marketplace,” he said.