Economist says farms must get bigger faster, to prepare for free world trade
The pace towards "virtual" free trade has been accelerated by EU Agriculture Commissioner Franz Fischler's proposal to decouple all direct payments from current farm production the biggest surprise to date in the Doha Round of world trade talks, according to Professor Sheehy.
In a exclusive interview for Examiner Farming, the recently retired Professor of Agricultural Economics at University College Dublin says Commissioner Fischler has made a radical step on decoupling which he had not expect to feature until the next world trade round.
"Commissioner Fischler has decided otherwise, and it looks increasingly likely that he will get his way, though there is some resistance being recorded, including opposition from Ireland and France," said Sheehy.
In this wide-ranging interview, the award winning UCD economist has said decoupling would not be all bad news for Irish farmers.
Although reductions of the Irish beef cow herd by 30% and of ewes by 12% are predicted, which would severely affect the meat processing industry, farmers could benefit from better livestock prices.
Professor Sheehy says dairy farmers will be freed from the shackles of quotas by EU milk price cuts in the coming years, but full quota elimination is essential for establishing a dynamic, competitive Irish dairy industry.
On Irish agriculture in a "virtual free trade" world, he says Ireland will rely on a core of young and not so young farmers and on our successful multinational food companies which have the ability to compete with the best.
They need freedom from quotas and regulations, lower land prices and rents, to achieve scale and efficiency. 'Small is beautiful' can no longer be the aim."
"Farm numbers will continue to decline, thus enabling others to expand, as has been the case since the Famine. In fact, we need to accelerate the decline," says Professor Sheehy.
