EU gravy train set to stop for Irish farmers
As one far removed from the wellington boot brigade his comments about future EU funding, and the challenges facing Irish agriculture and food sectors, serve as another reminder that the gravy train days of the EU are over.
With due deference to the Taoiseach we are going to bite the bullet here and suggest the merger of Dairygold and Glanbia as a good starting point. Avonmore and Waterford merged so why not tack on Dairygold for good measure and open up the prospects of a radical change to the dairy sector. At least lets have an open debate about what needs to be done.
Action is required and if the issue is approached on the basis of what’s good for Ireland and not just local communities, then we might get somewhere.
Combined, the two would represent a potent force in the dairy sector and the savings potential involved would be huge.
Rationalisation is inevitable anyway. Teagasc issued new findings suggesting the number of dairy farmers will fall to 15,000 from 24,000 smaller quotas become untenable.
The figures are just another reminder that the process of change is inexorable and it is happening whether we choose to ignore it or not.
So why not embrace the process in a much more open manner and get on with it?
In his recent comments the Taoiseach called on the food and agriculture sectors to gear themselves up for a much tougher regime where competition will be more intense, subsidies far fewer, and opportunities much greater, provided we embrace change. Mr Ahern was outlining a post 2013 scenario when he addressed the Agricultural Consultants Association in Dublin.
He said nothing new. But the point is that this country still has massive opportunities to make its mark in the global dairy sector if we respond to the challenge in time.
For that to happen the sector has to wake up to what’s about to happen.
We have not fully woken up to the reality that in a few years time the support levels for agriculture at EU level will have dwindled.
Presently we get a total of €2.9 million in subsidies including of which €1.46bn is in direct payments. We are living in a fools paradise, was his underlying message.
With 10 new members coming on board next year, the amount of money to go round will by definition be less and the EU Commission will be under severe pressure to redistribute wealth from the richer to the less well off.
In that context Ireland has done spectacularly well, not just in agriculture but across the board.
But unfortunately the periphery is getting bigger and Ireland has long since come in out of the cold.
We have been major beneficiaries over the years and by all objective measurements we made very good use of the funding that came our way even allowing for the odd politically motivated roundabout here or there over the years.
Ahern feels the need to "continually warn" of the ending of the days of wine and roses.
Deep down he believes those in the firing line in agriculture and food have not grasped the reality that in less than 10 years the support system on offer to agriculture here will be significantly less as far as we are concerned.
There is little doubt about it.
It is imperative that we respond to the challenges.
Key growth areas in the future include what Bord Bia describes as “health & nutrition and hearts & minds.
We are talking here about functional foods that include food and drink products that have an overall beneficial impact on mind and body.
It is a huge evolving market worth €40 billion last year.
We have to exploit this sector and we have the research and development capability to take us there.
The combination of Glanbia and Dairygold might just be the platform to launch an attack on that market.
