Dáil debates

Thursday, 20 February 2025

Importance of Agrifood to the Irish Economy: Statements

 

8:00 am

Photo of Micheál CarrigyMicheál Carrigy (Longford-Westmeath, Fine Gael) | Oireachtas source

I also wish the Minister and the two Ministers of State well. I have every confidence in the three of them as rural TDs who will work on behalf of farmers throughout the country. I have known the Minister for a long number of years. From meeting with of as Minister.

The agrifood sector has been the cornerstone of the Irish economy and rural communities for generations. It is not just about farming; it is also about processing, innovation, exports and sustainability.

It is about taking what we produce on our farms and adding value to it, creating jobs and economic opportunities throughout the country. I will talk about where the sector stands and some of its challenges and opportunities, and will highlight how my home county of Longford plays a role in that food story.

The sector is worth more than €16 billion annually, making it one of Ireland's most important industries. We export 90% of what we produce. Our food and drink exports hit €16.3 billion in 2023 with strong demand from Europe, the UK and further afield. Dairy contributed €6 billion, beef stood at €2.5 billion and prepared consumer foods, such as bakery products and ready meals, were worth approximately €2.2 billion. However, there are challenges for the sector. Inflation and energy, transport and raw material costs have increased significantly, putting pressure on producers. We have seen price fluctuations in key commodities such as dairy and beef, which impact both farmers and food manufacturers.

The agrifood sector, in particular, has shortages in processing and logistics and is struggling to find workers. I recently met McCormack's fruit and vegetable growers in south Longford, along with the IFA chairperson, who are struggling to get employees. Employees are coming in from outside this country. With the increase in the minimum wage, they are struggling to get people to pick their products. There is an urgent need to attract and retain talent, from farm workers to skilled food technologists. The challenge is balancing sustainability while maintaining productivity and competitiveness. Brexit continues to pose challenges, especially for supply chains and exports to the UK. There is a need to diversity into new markets, with Asia, North America and the Middle East offering huge potential to Irish food exports.

In my home county, we have a strong dairy and beef industry. It is home to top-quality beef and dairy farms, with farms investing in grass-fed, high-welfare systems that are in demand internationally. It is home to leading food processing businesses, especially meat processing, prepared foods and bakery products, including Pat the Baker, which is well known to us, and Panelto Foods, which has based its research and development facility in the county. We have companies such as Green Isle Foods in Longford town that are key players in frozen food production. However, we need further investment in food innovation hubs that can help small agrifood businesses in the county and allow us to expand into new markets. We have seen a rise in the artisan food businesses in our county producing everything from cheeses, organic meats and craft beverages to bakery goods. Lough Ree Distillery is producing alcohol that is now being exported. Midlands Ireland's food innovation is promoting the food industry in the midland counties of Longford, Westmeath, Laois and Offaly. Our agricultural shows, as mentioned by Deputy Clendennen, are a fantastic opportunity and need to continue to be supported to promote local food production. We need more support for direct-to-consumer sales, farmers' markets and online food retail.

There are fantastic opportunities for growth. We need to encourage more food processing and agrifood innovation at a local level rather than just exporting the raw materials. Irish food is already known for being grass-fed, high quality and traceable. We need to market this even more. There are big opportunities in the growing organic and regenerative agriculture sectors. The next generation needs clear pathways into farming and food production. We need support for training and apprenticeships, and funding for start-ups in the food sector is essential. The sector is the backbone of the rural economy. My home constituency of Longford-Westmeath plays an important role in producing and processing top-quality food. While there are always challenges, there are also huge opportunities, particularly in value-added products, sustainability and exports. We need to support farmers, processors and food entrepreneurs to ensure the long-term success of the sector. I ask the Minister to ensure that Government policies, funding and initiatives are in place to help the agrifood sector in Longford-Westmeath, and in Ireland as a whole, to thrive at home and abroad.

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