Green global image could see Ireland the Silicon Valley for food
Among the strengths they saw were our positive global image as a “green island”; our clear competitive advantage in production of milk and beef from grass; our food and agriculture expansion plan in place, drawn up and supported by the sector; and the improved attitude towards careers in the sector for highly-educated young people (minimum points for studying agriculture in UCD have risen from 315 in 2007 to 420 in 2010, while applications for courses at agricultural colleges are up 84% on 2008).
An enthusiastic, informed and inspiring minister was seen as an additional strength.
The weaknesses seen at Croke Park include very wide variation in farming performance, quantified at the conference by Dr Tom Kelly of Teagasc and Gerard Keenan of Keenan and Co; the lack of scale in our dairy companies compared to key international competitors (Conor Mulvihill of ICOS had the figures in this); their lack of scale for competing in new markets such as Russia or China (John Whelan, Irish Exporters’ Association); and farm fragmentation, as a barrier to dairy expansion.
Opportunities clearly arise — such as the removal of EU milk quotas in 2015, and Chinese demand lifting the world dairy market. Higher world grain prices increase our comparative advantage.
A significant new opportunity for the fish processing sector was identified at this conference by Agriculture Minister Simon Coveney, who was also specific on the opportunities for Irish beef in Germany.
But threats to the agriculture and food sector’s growth arise also, mostly on the policy side. EU agricultural policy is due to be revised in 2013. There are many arguments for reducing the total cost of the common agriculture policy. There are arguments for a more equitable share-out of the total expenditure between member states and between farming groups. However, EU Agriculture Commissioner Ciolos and the farmers of Europe seem to have won the first round of the CAP Reform fight, in the proposed EU budget plan to 2020.
A further policy development which could have negative consequences is a trade agreement with south American countries. Recently, the European Commission said there will also be access to a fund for farmers negatively affected by trade deals, similar to the European Globalisation Fund for workers.
Meanwhile, tension between food production and environmental considerations continues. Biodiversity is no longer the only environmental consideration; the reality of global warming is now accepted.
