Michael Creed (Cork North West, Fine Gael) | Oireachtas source

Ireland is a small, open economy that exports the vast bulk of its main agricultural commodities. Therefore, producer prices here are largely determined by commodity prices on world markets rather than by production levels within Ireland. We have seen significant commodity price volatility on world markets over recent years. However, there are measures in place to help Irish farmers through these periods.

Direct payments estimated by Teagasc at more than €17,000 per farm in 2015 provide a valuable source of farm income support and act as a hedge against price volatility. Food Wise 2025, the new ten-year strategy for the agricultural food sector, identifies opportunities and challenges facing the sector and provides an enabling strategy that will allow the sector to grow and prosper. Food Wise 2025 includes more than 400 specific recommendations spread across the cross-cutting themes of sustainability, innovation, human capital, market development and competitiveness. As well as specific sectoral recommendations, Food Wise 2025 is not just about expanding production. I believe that moving up the value chain, where possible, in terms of the types of products sold and how they are produced is also an important hedge against volatility.

In light of the UK vote to leave the EU, Brexit has been included as a standard item on the agenda of each meeting of the Food Wise high-level implementation committee. It is clear that driving the implementation of the Food Wise recommendations, particularly those relating to market development, competitiveness and innovation, will assume even greater importance in the light of the decision.

The UK’s decision to leave the EU reinforces the need to develop as many outlets for our agrifood exports as possible to minimise our dependence on any one market. Indeed, this principle of market development is a key component of Food Wise. We have been very active in recent years in efforts to diversify markets, and in aiming to respond to consumer demands in emerging markets. In September, I was in south east Asia with the Minister of State, Deputy Doyle, and I led a trade mission to China, Vietnam,. Singapore and South Korea. I have also recently been to Morocco and Algeria looking at diary and beef situation, particularly in respect of live exports of cattle.

Since taking up office, one of my priorities has been to address the impact of the sustained period of lower commodity prices on farmers. In that regard, we introduced a low-cost finance option in the budget and reformed the tax code to deal with farmers opting out of five-year income averaging in a particularly bad year. We are committed to further initiatives in this area. I have also increased funding under the rural development programme.

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