Spiralling costs and falling prices put Irish farmers in high risk EU category

FARMERS have been identified at EU level as “high risk“, requiring aid schemes of this kind, because of the substantial changes taking place in the agriculture sector generally, and the high levels of dependence on agriculture and agri-food in certain areas.

Spiralling costs and falling prices put Irish farmers in high risk EU category

Globalisation and CAP reform are having major effects on the areas of Ireland, Wales and Sweden taking part in the sis “Harnessing Rural Capital” programme.

In North Cork, the number of people employed in agriculture is now less than 5,000, having fallen more than 26% since 1996 — which represents the largest single economic change in Ireland since industrialisation.

For example, in the District Electoral Divisions of Clonfert West, Knockatooan, Meens and Rowl in the north west of Co Cork, a decrease in agricultural employment of 30% has been linked to an 11.42% decrease in population since 1996.

In some areas this is a major disaster, coupled with agri-food sector restructuring and dramatic out-migration, according to local agencies.

Not only have farming jobs disappeared; increased competition, globalisation, processing costs and falling prices in the world’s food markets can be linked to recent closures at Galtee Meats, Dairygold and Nestle.

People involved in “Harnessing Rural Capital” in North Cork and South East Limerick will hope to learn from their counterparts in Wales and Sweden — and vice versa. South West Wales has been hit by creamery closures, and has very many unviable family farms.

The area has a very small niche food production sector. The transfer of information between partners in this area will be very valuable. The Norrbotten experience has been that food production has also moved away from mainstream large scale manufacturing to niche food producers.

Dairy farming predominates there, but the numbers involved have 73% between 1974 and 2004. Wales now has fewer than 3,200 milk producers.

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