Mr. John Bryan:

I thank the Chairman and members of the joint committee for the opportunity to make opening remarks on Professor Alan Renwick’s presentation on the findings of the UCD report, The Importance of the Cattle and Sheep Sectors to the Irish Economy, which was commissioned by the IFA. This is an opportune time for such a discussion because a number of critical decisions will need to be made in the coming weeks and months in regard to the Irish economy and the value of jobs. The Government will have to make decisions in the upcoming budget on the level of support to be provided to the various sectors. Over the next several months critical decisions will be made on 50:50 national co-financing. These decisions will be made in the context of a suckler herd that has already lost 100,000 cows and a large number of farmers who are considering whether to reduce their herds further. We have to use whatever opportunities are available to us to prevent this from happening.

This report quantifies the huge contribution that the cattle and sheep sectors make to the national, local and rural economies. Its figures show that the livestock sector generates €2.3 billion worth of output at the farm gate, which equates to total output of €5.7 billion for the national economy. The sectors support over 100,000 farmers and over 50,000 jobs in the wider economy. The cattle and sheep sectors deliver a real return in every rural parish, generating economic activity and providing employment across the country. Combined, the sectors have an unparalleled reach in terms of their contribution to the rural and wider economy.

The report shows that cattle and sheep farms are low-income enterprises, in which direct payments represent on average over 50% of gross output and between 141% and 177% of family farm income on sheep and cattle farms respectively. These direct payments in the cattle and sheep sectors are delivering excellent value for money, with a strong economic multiplier. A key finding in this report is that each €1 of direct support for cattle and sheep farmers underpins over €4 of aggregate output in the economy. Such findings have underpinned the IFA’s sustained campaigns to secure a positive outcome to the CAP reform negotiations, secure national co-financing under Pillar 2, rural development, for the sectors and to secure support in budget 2014. The message is clear; every euro spent is good value for money and a major stimulus to jobs, exports and the economy. Achieving our Food Harvest 2020 targets could lead to an additional €1.6 billion output and between 5,000 and 10,000 additional new jobs in the economy.

It is critical that the Government shows support for the livestock sector in the upcoming budget. A suckler payment is essential if we are maintain our 1.1 million national suckler cow herd and continue to deliver high quality beef to an industry which secures a premium product in key export markets and food service outlets across the UK and Europe. Confirmation of a suckler payment in budget 2014 will form the basis for a strong payment for the suckler herd as part of the CAP implementation in the years ahead. Similarly, continued support for our 32,000 sheep flock owners across the country is essential. There must be roll-over of the sheep grassland payment in the forthcoming budget, which should be further strengthened as part of the CAP implementation in 2015. Sheep farming is the second most common enterprise on Irish farms and is very important in terms of its economic and environmental contribution to rural areas, particularly in hill and mountainous regions. The Government needs to make a strong commitment to 50:50 national co-financing to support vulnerable sectors in the context of the negotiations on the new CAP programme for 2014 to 2020. The IFA is clear, and Professor Renwick's report will confirm, that any euro spent by the Government will come back as jobs and exports.