Consumers ‘hold key to future of farming’
That’s the prediction of Minister Joe Walsh in the immediate aftermath of his decision to introduce full decoupling of all cattle, sheep and arable crops payments.
In a move that will radically change the face of Irish agriculture, the payments will be decoupled from production from January 2005 and replaced with a single annual farm cheque.
Mr Walsh said he took the decision now in order to enable Irish farmers to make clear plans for the future.
“While there are uncertainties in farming, one issue that we can all be sure of is the need for a continuing focus on competitiveness and efficiency,” he said.
“The decoupling of support from production will help create a market environment which will be more orientated towards consumers’ needs and should allow clear market signals on pricing and quality issues.
“For the future, incomes from farming will be determined by the market and the freedom provided by decoupling will enable farmers to engage in enterprises that will return the best margins from production.”
Mr Walsh said the analysis undertaken by FAPRI-Ireland showed that full decoupling should lead to the greatest improvement in aggregate farm incomes.
“I believe that our top dairy, beef, sheep and tillage farmers are among the best in Europe and we now have the opportunity to adapt production systems to real market needs rather than premia payments.
“In addition, the re-orientation of farmers away from the goal of maximising premia to that of obtaining the greatest market returns will, I believe, result in improved quality and will assist food processors in developing and supplying quality markets.
“There are also beneficial effects on the environment from the new system. The FAPRI analysis shows that full decoupling will have the greatest positive impact on the environment by the reduction in the contribution by agriculture to greenhouse gas emissions.
“For many this may seem like a peripheral consideration but it should be recognised that primary agriculture is more open to the influences of global warming and climate change than most other activities.”
Irish agriculture was entering a new and interesting phase.
He had been greatly encouraged by the positive attitude and by the determination to make the best of the new set of circumstances.
“We now have a reformed CAP which protects payments to Irish farmers and is based clearly on the principles of market orientation, sustainability and environmental awareness.”
Mr Walsh said naturally there were concerns. He respected those and would see to what extent he could take them into account.
“Up to now farmers were highly critical of the level of bureaucracy involved and the constraints on real farming. It was bewildering for an awful lot of farmers because the vast majority of them like to roll up their sleeves and go out on the farm.”
He believed farmers were going to embrace the opportunity of the freedom to farm for the market place. They would begin each year with a single farm payment cheque as a cushion.
Responding to ICMSA concerns about prices for calves and weanlings, he said the matter that affected the buoyancy of these more than anything else was the live trade. He intended to ensure a continued buoyant live trade, which had fluctuated over the years for different reasons.
To date this year, a total of 173,000 head of cattle have been exported live from Ireland, with 150,000 going to mainland Europe. Such a thriving trade was reflected in the marts and in the prices for calves and weanlings here. He believed it was the best way to keep up prices.
Regarding fears by meat processors that reduced output at farm level would lead to a drop in production and job losses, he said that in all probability there would be an increase in jobs.
“I say that because we have been supplying to a very great extent a commodity market up to now. With a scarcity in mainland Europe, there will be a greater opportunity to supply real market needs.
“And with the improvement in quality, I see no reason why there should not be an increase in value added and a greater journey along the value chain, which will mean more consumer cuts and more jobs.”
