Dáil debates

Thursday, 20 February 2025

Importance of Agrifood to the Irish Economy: Statements

 

6:40 am

Photo of Robert O'DonoghueRobert O'Donoghue (Dublin Fingal West, Labour) | Oireachtas source

I congratulate the Leas-Cheann Comhairle on his new role. It might seem odd that the Labour Party spokesperson for agriculture is a Dublin-based TD. However, I assure members that I am from Rush in the north county. It used to be known as the market garden capital of Ireland because of the importance horticulture played in its economy.

I have picked every fruit and vegetable under the sun during the course of my life and also worked in the supply chain for Fyffes for three years, so outside of those Members who are actively involved in farming, I have a decent take on how the agrifood sector works. The biggest employer in my local area is County Crest which employs over 400 of the 171,000 people working in the agrifood sector. It has a multimillion turnover which feeds into the more than €18 billion in exports that Ireland produces each year. The north county has some of the best, if not the best, land in Ireland for horticulture, underscoring the importance of this sector to both Dublin Fingal West and Ireland. However, as others have said, the agrifood sector faces a number of challenges both in the short and long term.

Ireland’s ability to secure its own food supply as well as its exports is crucial in an increasingly uncertain global landscape. International political uncertainty coming from the war in Ukraine and the sidelining of Europe by the US and Russia in the ongoing talks to end the war poses a significant threat to global trade, supply chains and food security and this will impact us.

Energy prices heavily impact and influence food production costs on farms, from farm machinery to transportation and refrigeration. In my constituency Welgro uses gas to heat its glass houses to produce fruit and vegetables but war-related energy price shocks and inflationary pressures on gas prices in 2022 posed a significant threat to the viability and continuation of its business. From recollection, there was not much aid made available to it at the time.

Climate change and biodiversity loss is another critical factor affecting food security. Weather extremes such as floods, droughts and storms have had a severe impact on the production of agricultural output in my constituency. Farmers are still struggling after a winter of storms which has affected everything, including disrupting planting cycles and damaging polytunnels.

From grass-fed beef to organic vegetables, Irish farmers are renowned worldwide for producing the highest quality, sustainable food. However, current Government policies are creating an environment where family farms struggle to survive while large agribusinesses continue to thrive. The EU Mercosur trade deal presents significant challenges related to environmental sustainability and food safety standards, particularly in the cattle industry. Farmers in South America are not held to the same standards of traceability, animal welfare, and health and safety as their Irish counterparts. I welcome the Minister's comments on Mercosur. Even more concerning, South American beef production is responsible for two thirds of tropical deforestation. While the EU asks Irish farmers to set aside land for nature restoration, it simultaneously incentivises habitat destruction in South America. This contradiction undermines the credibility of the deal. The agreement completely undermines efforts toward sustainable food production and tackling the global climate crisis. Addressing these concerns requires robust enforcement of environmental protections and harmonisation of food safety regulations to ensure that trade expansion does not come at the expense of ecological integrity and consumer health or put Irish farmers on an unlevel playing field. The country must balance sustainability goals with maintaining high food production values and fairness for farmers. The Irish Farmers Association argued at the end of 2024 that the Mercosur Pact will threaten Irish agrifood exports, especially beef. While Mercosur will likely be a good deal for goods and services, it is sacrificing agriculture at their altar. I am glad to see this is ringing alarm bells in Ireland and France, in particular, both of which have strong and mature agriculture sectors.

The Labour Party offers a fundamentally different vision for Ireland's farming future. The role of farmers is indispensable but a lot of farmers and growers that I speak to in my local constituency think that their contributions are undervalued. We want to engage with farmers and rural Ireland to bring future-proofed jobs back into our farming communities. This means working with farmers and developing policies that protect the environment and our food supply. We need to grow the horticulture and tillage sectors with an improved tillage incentive scheme and new horticultural schemes. In that context, I thank the Minister for his recent announcement of €1.9 million in baling assistance payments. We need to develop a national food strategy to ensure everyone can afford nutritious food and we also need to transform Teagasc into a food security and sustainability agency.

The EU has always put food security at the front and centre of it policies, even prior to the Treaty of Rome in 1958. In the EU budgetary talks which commenced recently on the next EU budget from 2028 to 2034 the CAP is likely to remain the largest single budgetary item. We must secure the future of the agrifood sector by protecting family farms, rewarding small farmers and ensuring fair income distribution for small and disadvantaged farmers. The decline of the family farm in Ireland highlights the growing challenges small farmers face due to Government policies, corporate interests, and environmental regulations that often prioritise large agribusinesses over smaller, sustainable farms. As small farms disappear, rural Ireland suffers. Local economies weaken, traditions tied to farming fade, and younger generations are forced to leave their communities in search of better opportunities. The average farm income is only €29,000 per year and once young people leave, it is very hard to get them to return to the land. We need to protect the long tradition of the family farm and send a clear message of support for the Irish family farm which is not just an economic unit but a vital part of our national heritage. We must push for CAP reforms that will protect our rural heritage and family farms while at the same time innovating our way to delivering secure, long-lasting, sustainable rural jobs.

CAP payments should support small farmers but in reality they are often disproportionately funnelled into larger agribusinesses. We need to reform CAP so that it directly benefits the smaller farmer. We can do this by: bringing small and medium farms into the twenty first century by upgrading technologies to improve their competitiveness; initiating a Government campaign to publicise the importance of high-quality, natural food production for the health of the nation and encouraging the consumption of less ultra-processed foods; and supporting farmers in setting up processes to add value to their produce, as has been done in Ballymore Foods in my constituency.

Finally, we need to protect farmers from being squeezed by the supermarkets. I spoke to a parsnip farmer at the weekend who explained to me that he puts his crop in the ground between March and May. However, the supermarkets will not discuss pricing until June, at which point the crop is in the ground and any leverage the farmer has to get a better price for his produce is minimal. He either has to take what is on offer or let the crop rot in the ground. Large supermarket chains and food processors have significant control over pricing, sometimes paying farmers less than the cost of production. Meanwhile, input costs such as fuel, feed, and fertilizer continue to rise which cuts into the margins of small farmers in particular.

If we want a strong and sustainable future for Irish farming we must support the next generation of farmers, especially young people trying to get into farming. Farming has long been the backbone of our rural communities. The issue in my area is that there is only one bunch of farmers who are younger than I am. The average age of farmers now is 60 and that is not sustainable. We need to push for change before it is too late. The future of our rural communities depends on it. I look forward to working with the Minister in this regard over the course of this Dáil term.

Comments

No comments

Log in or join to post a public comment.