Oireachtas Joint and Select Committees

Wednesday, 2 October 2013

Joint Oireachtas Committee on Foreign Affairs and Trade

Trade Promotion: Discussion (Resumed) with the Irish Farmers Association

4:30 pm

Mr. John Bryan:

The first matter Deputy Crowe referred to was the fodder crisis. The rain in 2012 and the subsequent very late spring was unprecedented. It was almost what one would call the perfect storm. There was less fodder made, the stock went in much earlier, there was significant pressure and then it rained continuously. Farmers were hoping to get stock out by St. Patrick's Day. Instead, it rained all through April and then it was cold in May. Both badly affected it. From week to week, the fodder crisis got worse and it put pressure on farmers. Many farmers were very depressed over it. We were going to a meeting in Tuam last week and met a farmer in Athlone who said he was at a low ebb wondering how was he going to feed his stock. As the Deputy stated, the Government acted and with the IFA, FBD and other partners put together €1 million. While it might have sounded a small sum, it was to show solidarity and get fodder in. What came from England was helpful and, when it ran out there, a bit came from France. It was merely trying to show a bit of light at the end of the tunnel. People put effort into it. It showed community spirit. Probably what will never be documented is the amount of fodder moved. From several counties, such as Wicklow and Wexford, significant quantities of fodder travelled to the north west and the mid-west within the country. Farmers who never traded fodder who might always believe in being prudent and keeping surplus, did deliver it and there was a significant effort put in. It was good for farmers to help out one another but one can only stretch an elastic band so far.

Deputy Crowe referred to all-island relations. There is significant agri-trade and business and we would have close relations with our sister organisation, the Ulster Farmers' Union. We were in Virginia lately. They were down at the ploughing match. We work with them in Europe and we would have similar views on many areas.

There is a relatively stable all-island health status, certainly in the Origin Green where there is much dairy production. There are significant quantities of Northern Ireland milk processed by Town of Monaghan, Lakelands and, to a lesser extent, Glanbia. There will be an understanding in place if they do the same certification, but they will have to do the certification to get it. We have been a little more generous in offering Origin Green certification than they have been in offering the Red Tractor mark. It is not mutually reciprocal. We would like to get the same for our product going into the United Kingdom market but that has not happened. We have a close working relationship with them.

Deputy Crowe referred to the lack of GM. There are some markets, such as our colleagues from Norway who we met before we came in here, which will not take most products unless they are GM-free. The Austrians are a bit the same. In general, most markets will not pay a premium for it. Unless there is a premium, it creates a cost.

The Deputy referred to matters such as the closure of Jacob's. There would be a significant difference between a meat factory and a dairy processor, and Jacob's. The meat factor or dairy processor is processing 100% Irish product whereas 90% of what was going through Jacob's was imported. Jacob's had the cost of importing it and the cost of handling it. It is one of the points we make repeatedly about the Irish food sector. There are the indigenous companies where everything they buy is Irish and where a significant amount of the employment is Irish, and others where 1% of it is, where they shake a little pepper on it and call it Irish. We would have a concern about that because it does not create the same number of jobs.

One of the problems we encounter is that being an island, we are distant from the market. Fertiliser and feed, both of which are bulky, and fuel often cost more in Ireland than on mainland Europe. In addition, our exports have to travel and that is an extra cost we have which adds to it.

We have always highlighted standards. Deputy Neville referred to it.

There are animal rights and human rights. Our trip to Brazil highlighted the fact that there were not human rights, never mind animal rights. I was asked about bio-fuel. We presented to the agriculture committee a video on our trip to Brazil. Some of the findings were shocking. Many of the big ranches in the country have slave labour. People must travel 20 or 30 miles down a dusty track to get to them and they wear rags and live in huts. On one of the farms that we visited, approximately 17 children came out of a hut. The standard of living is poor. For international companies to be buying food from South American and putting it on the supermarket shelf here is questionable. Animal welfare does not exist, and I will not mention the issue of hormones.

This ties in with the question on bio-fuels. We were on a plantation and collected information from all sorts of people. We were advised to meet an Irish priest in a nearby church after Sunday mass. The priest described how badly the people are treated on the plantation. He said he should not be quoted as he would have to leave the morning after. He said the children are loaded into trucks and brought to the plantation, but they never come back again. It is pure slave labour.

The bio-fuel energy story in South America is a story that will be told someday. It is not a good story, however. The life expectancy of the children on the plantations is low. If one ever wants to do some research, one should head to South America. When one compares the circumstances in South America to those in Ireland, one notes a great difference. The Spanish moved to South America 400 or 500 years ago after the arrival of Columbus. They settled on all the good land in the south and used it for cattle production. The land is all now used for bio-fuels and all the cattle ranches have moved up to the rainforest. Farmers burn an area the size of Munster every year to create farmland, yet we worry about climate change in Ireland and emissions from a few cattle. However, we are quite happy to take produce from South America. It does not add up to bring beef in the from South America given the human rights, animal welfare and climate change considerations. This story has to be told. We are good at telling it when we are asked.

The last question I was asked was on exports and trade missions. We have been in Spain with Bord Bia and the Irish embassy attaché. We are brought to meet customers who would not meet us without an embassy attaché. We were in Washington lately. Mr. John Dardis is the embassy attaché there. The staff are very good. The public service recruitment embargo should not be applied as the reality is that a few more attachés in Irish embassies and a few more people in Bord Bia offices in America would be beneficial. To have one person in America is ridiculous. I have raised this with the Taoiseach as I believe trade missions are useful.

It is a question of competition. It is very easy for a small group of colleagues who get on very well together to manipulate the market. However, competition prevents this problem. Iran and the Middle East are useful. China is useful but small quantities are involved. With regard to live exports, we always say that the calf, the weanling and the forward store cattle must be borne in mind. In the past, when we sent forward stores to North Africa, it kept more Friesian cattle in the country. The trade creates employment. It is not a matter of a loss of jobs. Having live exports can certainly increase the numbers here.

Deputy Neville referred to Mercosur. The United States opens a trade and then creates 40 barriers. One must be USDA approved and meet the standards. Then one must be cleared with the state. This is why jumping into a trade deal with the United States is problematic. It is a case of the barriers that it will put in place. Even at present it is talking about putting new licensing arrangements in place. Applying for a licence will incur costs. We would have said exactly what Deputy Neville said. We met the food and veterinary officers in Grange. They should have the same regime as the United States. They should be certifying the plants and there should be individual inspections. The European Union tends to recognise certification in the country of origin. Standards are not the same everywhere. There was no even level at all. It is scandalous that chicken that is certainly not Irish comes from Thailand and gets tossed into a plastic bag only to be labelled as of Irish origin. This is scandalous. We have made representations on this to the European Parliament and the agriculture committee. Serious tightening up is required in this area. We have been seeking retail legislation for as long as I am around and it was promised on several occasion. Retail legislation would force the identification of the country of birth, the country of rearing and the country of slaughter. If a product has 20 parts from 20 different countries, the producer should be forced to label it accordingly. That is what is required, rather than what is occurring at present, which is misleading the consumer.

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