Cattle and sheep sectors worth €5.7bn to economy, study shows

Cattle and sheep are hugely important to Ireland’s recovery plans, supporting 100,000 farmers and over 50,000 jobs in the wider economy, according to a UCD study.

Commissioned by the IFA, the study estimates cattle and sheep farmgate output at €2.3bn annually, creating total output of €5.7bn.

UCD professor of agriculture and food economics, Alan Renwick, said the report shows how deeply embedded the two sectors are in the economy.

Both sectors have high spends on inputs and services in the local economy, while their strong focus on exports is also of strategic economic importance.

The IFA said that the report, The Importance of the Cattle and Sheep Sectors to the Irish Economy, identifies the significant geographical spread and important economic impact of the beef and sheep sectors.

Launching the report in the Irish Farm Centre, Dublin, John Bryan said: “The cattle and sheep sectors deliver a real return in every rural parish, generating economic activity and providing employment across the country. Combined, the sectors have an unparalleled reach in terms of their contribution to the rural and wider economy.”

The report shows that cattle and sheep farming are low-income enterprises, averaging €8,000 (cattle rearing) and €12,000 (sheep farming) over the last five years.

He said that direct payments are of major importance for farm output and income, representing over 50% of gross output and between 141% (sheep) and 177% (cattle rearing) of family farm income.

The farmers’ association also notes that direct payments in the cattle and sheep sectors deliver excellent value for money, with a strong multiplier effect.

Mr Bryan said: “One of the key findings in this report is that each €1 of direct support for cattle and sheep farmers underpins over €4 of aggregate output in the economy. For example, analysis of cattle farming in Co Clare shows that 80% of the cattle output is sold in the county, and 90% of the inputs are sourced locally.”

The IFA is to present this report to Taoiseach Enda Kenny, Agriculture Minister Simon Coveney and the Government as the basis for underpinning IFA’s campaign to secure a positive outcome to the CAP reform negotiations, and especially national co-financing under Pillar 2 Rural Development for the sectors.

“The clear message is that every euro spent is good value for money and a major stimulus to jobs, exports and the economy,” said Mr Bryan.

Achieving the Food Harvest 2020 targets could lead to an increase of €1.6bn in output in the Irish economy, with estimates of an additional 5,000-10,000 jobs created. Conversely, a cut in direct payments would impact very negatively on both farm incomes and output.

IFA national livestock committee chairman Henry Burns said maintaining and supporting the €1.1m national suckler cow herd is vital in terms of producing the quality beef which enables the sector to secure the high-priced premium retail and food service outlets across the UK and Europe.

With 32,000 flock owners, IFA national sheep committee chairman James Murphy said the sheep sector is the second largest enterprise at farm level, and is very important in terms of its economic and environmental contribution to rural areas, particularly in hill and mountainous regions.