Report outlines "no single solution" for horticulture

In 2020, the horticulture sector had a farm-gate value of €467m.

A new report has said there is “no single solution” to ensuring the successful development of the Irish horticulture sector.

The document, published this week, provides a comprehensive overview of the state of play in the horticulture industry in Ireland.

It comes after KPMG was appointed late last year by Minister of State Pippa Hackett to conduct a major review of the industry.

Speaking at the time, she said that while she believes the industry is “full of opportunity”, there was a need for “hard evidence to inform us about how best we can support and grow this important sector in the years ahead”.

The report focuses on seven sub-sectors that include field crops, protected crops, soft fruit, top fruit (primarily apples), amenity, potatoes, and mushrooms.

“It provides significant data and analysis which will inform a strategy for change to enable each sector within this industry to fulfil its true potential,” Ms Hackett said this week.

“Horticulture is a vital part of the Irish economy, and we know consumers want Irish produce.”

New strategy 

Minister for Agriculture, Food and the Marine Charlie McConalogue was among those to welcome the report, adding that the exercise underlines the importance of the viability of Ireland’s fourth largest agriculture sector.

He added that he agreed with the report finding that “there is no single solution that can ensure the successful development of the Irish horticulture sector”, and that “the most direct way to achieve the sector’s ambition will come from giving existing growers and businesses the confidence to expand and diversify profitable enterprises”.

Following the publication of this report, Ms Hackett said “there is more work to be done”, and that the development of an “overarching strategy for the sector driven by sustainability and innovation will ensure the growth and prosperity of this important sector”.

That strategy is expected to be published early next year.

In 2020, the horticulture sector had a farm-gate value of €467m.

“Whilst the sector holds potential for growth, numerous challenges need to be addressed to ensure the future viability of the sector,” the report states.

“Accordingly, a strategic ambition is needed to guide
the co-ordinated pursuit of opportunities to realise the sector’s potential.

“Such a strategic ambition should be to grow a more profitable value-added sector driven by sustainability and innovation.”

The report said that at present, the majority of output from the horticulture industry is consumed domestically, with only mushrooms and amenity horticulture being significant exporters.

“The majority of Ireland’s fruit and vegetables — including high-value exotic fruits that we cannot grow here — are imported [approximately 83%], implying a significant trade deficit in the sector,” the report reads.

“Ireland’s reliance on imports for fruit and vegetables is linked to seasonality and some crops not being grown in Ireland.

“There is a potential opportunity to displace some imports with increased domestic production while expanding the share of products outside of current staples.”

Cross-cutting factors

More than 90% of all Irish fresh produce retail is sold by a mix of Irish and internationally-owned branded retail chains.

Out of an estimated 1,000 growers in commercial operation, Teagasc estimates the top 250 growers and producers supply 85% of output.

“Whilst each sub-sector presents its own challenges and opportunities, there are key cross-cutting factors that are applicable to the overall sector,” the report stated.

“Examples include rising input costs, labour supply and retention issues, constraints around pricing, margins, and scale, and the need for investment in research and development.

“Success requires that a range of actions for both the sub-sectors and overall cross-cutting factors are implemented.

“Policy action, co-ordination, and collaboration between the sector’s key stakeholders is crucial to achieving an outcome where the horticulture sector can be viable, grow and thrive,” it read.