Change to dominate farming, says Coughlan
SINCE being appointed the country’s first woman Minister for Agriculture and Food three months ago, Mary Coughlan has talked with a lot of people in the industry.
She has noted in the process that the word arising most often is “change”, a theme that will dominate much of what will happen in farming and the food sector over the next few years.
Change has certainly been to the fore in the year now ending. The historic expansion of the European Union added about 75 million consumers to an internal market that now caters for 450 million.
The implementation of the outcome of the mid term review of the Common Agricultural Policy (CAP), with a mandate to make European agriculture more competitive and economically viable, also began in earnest.
Agreement on a framework for a new round of WTO reforms, which has been a long time coming, made clear yet again the need for a competitive and market orientated agri-sector.
Ms Coughlan, whose department will have a total gross expenditure in 2005 of about €3.3 billion from State and EU coffers, recently reflected on the challenges she faces in keynote speeches.
She noted that the agriculture sector and rural society in Ireland has in past decades seen, accommodated and managed enormous changes.
“One thing is clear above all else from our collective experiences - we must continue to adapt and be willing to make necessary adjustments,” she said.
Ms Coughlan succeeded Joe Walsh in the country’s oldest Government department shortly after the most radical reform of the CAP reforms was agreed.
It involves severing the link between subsidies and production, the introduction of a new EU single farm payment based on historical reference, and opens up an exciting and challenging new era for farmers.
Ms Coughlan said the over-riding objective of producing what the market wants and will pay for will be restored as the central theme for producers.
They will no longer have their initiative and energies diverted into concerns about retention periods, census dates and other scheme requirements.
“While the market will take centre stage, farmers will also be required to accommodate concerns in relation to animal welfare and the environment and I am confident they will do so.”
Ms Coughlan said that in a variety of ways she thinks that what lies ahead will allow many in the sector to show their full potential and allow Ireland to prove just how good its producers, processors, innovators and marketers can be.
Looking back on 2004, she said dairy markets have been relatively positive.
Prices and demand on the EU and international markets have been strong.
Fears of a negative impact on prices on foot of EU expansion have been unfounded - product prices in the new member states have been steadily climbing to EU levels.
“Similarly, the mid term review changes on July 1 last had a limited impact.
“I was very pleased to note that the transition to the new market environment has been much smoother than predicted in many circles.
“While the outlook for the coming months remains positive, the reality is that in the new policy framework, market forces will have a much bigger influence on the price paid for milk.
“While EU market management measures will remain an influence, we must accept going forward an intensified focus on market force dynamics.
“This means that we must critically examine all aspects of economic, efficient and competitive production and processing within the dairy sector,” she said. Turning to the beef sector, Minister Coughlan said she believes full decoupling will be of great benefit to Irish agriculture and will underpin the development of a sustainable, market-oriented agri-food sector.
Quality production is the key to increasing Ireland’s share of the premium market for beef, particularly in the key European markets.
Ms Coughlan said that as Ireland moves forward to a more direct market-oriented beef sector, it is important to encourage the production of the type and quality of animals required by the markets.
“It is equally important that farmers should get a fair return for high quality production,” she said.
