Jackie Cahill (Tipperary, Fianna Fail) | Oireachtas source

We will not shirk our responsibilities.

All of us are out knocking on doors at the moment in support of our fellow politicians who are running in the European and local elections. At virtually every door, we are asked what is going to happen with Brexit and what impact Brexit will have. None of us has a crystal ball that shows us what Westminster will do. If one wants to get depressed at the moment, all one has to do is turn on the BBC news to hear about the chaos in Westminster. There is a lack of forward planning and cohesion over there. The only thing that is certain is that Brexit has no positives for the agrifood sector. There will not be any argument on that.

Deputy Penrose referred to the exchange rate. The mushroom industry, which depends significantly on the British market, descended into chaos very quickly after the UK voted to leave the EU in June 2016. This shows how vulnerable we are to fluctuations in exchange rates. When I read an article in the farming press during the week, I was interested to note that fluctuations in exchange rates at the moment are having a beneficial effect on Irish meat processors. Unfortunately, none of that is being passed back to primary producers.

There has not been enough of a focus on the impact that Brexit will have on the Netherlands and Denmark, which send a serious volume of produce into the UK market. The pig sector, which has been under great pressure in our economy for the past 18 months, will be strongly affected by Brexit if Danish pigmeat, in particular, has to find other markets. This sector cannot afford any more hits. I am worried about what will happen to it if Brexit means it has to compete with the Danish pig sector to try to find new markets.

The Minister has stated on a few occasions that he has confidence in the Commission and that financial aid will be provided to protect primary producers in the event of a hard or soft Brexit. Farmers on the ground do not share his confidence. I suppose the budget is the first issue. CAP negotiations are taking place at the moment. Some 38% of the entire EU budget is spent on agriculture at the moment. If the British take their money with them when they withdraw from the EU, there will be a €4 billion shortfall. The very least the Commission could do is say that this shortfall will be made up by the other 27 member states. That would give some credibility to the suggestion that the Commission will step in with proper financial aid. The CAP budget has been shrinking over time as a percentage of the EU budget. In real terms, farmers are getting an awful lot less. The food security that European farmers are providing to the people of Europe is being undervalued in each passing year.

I have spoken previously about the changes in the skimmed milk powder regulations. The concessions that have been given by the Commission in the Mercosur deal are also affecting the confidence of farmers. The Commission has agreed to these concessions in full knowledge of the damage that Brexit might do to our beef industry.

9 o’clock

From media reports, Mercosur could lead to another 100,000 tonnes of beef from South America being allowed into the EU. With a British exit, the EU would be more than 116% self-sufficient in beef. Farmers and primary producers cannot have confidence that the European Commission will step up to the plate to make up for the shortfalls in income in the event of a hard Brexit.

Last week Fianna Fáil put down a Private Members’ motion on beef. Beef farmers, suckler farmers, finishers and store producers are on their knees. It is a case of those who are losing the least in the beef industry. Nobody except the processors are making money. A no-deal Brexit will, unfortunately, make that situation far worse.

The Minister announced many new markets around the world with Irish beef now having access to 170 countries, along with markets for live exports into many locations. Unfortunately, the volume of beef going to those markets is extremely small. While we have provided extra resources for Bord Bia, until serious amounts of product begin moving to other countries, it is hard to see how we can survive without access to the UK market. Getting market share in any country is not easy. It is a slow process. I sat on Bord Bia for six years. I am not criticising the agency. It is doing its best to establish new markets. Several years ago, it was announced that access had been secured for Irish beef to the United States market. It was claimed it would take a significant amount of Irish beef. However, only €20 million worth of beef has gone to that market since it was opened. Unfortunately, that will not have any significant impact in the context of a Brexit situation.

Some people believe the dairy sector could be bombproofed for a Brexit situation. However, our cheddar cheese market is completely dependent on the UK. To change from producing cheddar to mozzarella cheese or other soft cheese products will take time, along with a significant amount of investment and research. To get markets established in different countries will take much time too.

I am concerned that a hard Brexit will leave a bitter taste in the mouth, resulting in the British trying to source products elsewhere on the dairy side. Ornua has invested significantly in the UK market. Any difficulties in operating in that market are a concern.

How will agrifood standards operate with the Border? Our quality assurance scheme is a bonus for selling our products worldwide. A significant amount of the milk processed by Lakelands, Glanbia and other co-ops along the Border, comes from Northern Ireland. Over time, standards will deviate. How can we operate a quality assurance scheme for a third country which the UK would become? That will create problems for marketing our products across the globe. Different standards would apply to animal health. In the past with brucellosis, there were different standards in Northern Ireland and the South. In turn this created difficulties for us and significantly delayed the eradication of brucellosis in the South. We will have no control in a hard Brexit situation over what the UK will do with animal health restrictions.

The problems that could be created are endless. Several weeks ago, Deputy McConalogue and I listened to food exporters about the problems they saw emerging. The time and costs to get products to the Continent will increase with, for example, delays at the crossings at Dover. We will not realise these problems until Brexit occurs.

The biggest crib is that the European Commission claims it will not let farmers down but we have no financial information forthcoming from the EU. The Commission talks about attracting young farmers into the industry but it still has a cap on incentives for young farmers entering farming. It is little wonder that farmers are nervous and worried that the Commission will not step up to the plate with the financial aids necessary in the event of a hard Brexit.

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