Dáil debates

Thursday, 20 February 2025

Importance of Agrifood to the Irish Economy: Statements

 

8:20 am

Photo of Noel GrealishNoel Grealish (Galway West, Independent) | Oireachtas source

I thank everyone for their contributions and for their messages of goodwill to the Minister, Deputy Heydon, and me. My good friend, Deputy Fitzmaurice, said they were giving us a short stay of execution. I hope I get a bit of a longer one because I am only new in this Department, while the Minister has been there for the past five years.

Listened to the debate, I note what Deputy Fitzmaurice said about going out to the land and walking through the cattle. I grew up on a farm and my job every weekend was to milk the cows on Saturday and Sunday. We used to go to 7 o'clock mass in the morning and I would have the cows milked beforehand. Every cow had a name and I would give every cow a kick to get it up, so I know what it is like to walk through the farm animals in the morning.

It is great to hear everyone talking about the importance of farming to the economy. It was reassuring to hear Deputies from Dublin talking about the agricultural sector. That is important because I think many farmers believe that no one in Dublin knows anything about farming, but there are people in Dublin who know something about farming. I have been involved in the programme for Government and it recognises the critical role the agrifood sector plays in the economy. The nature of the food business, especially one as outwardly focused as Ireland's, means events far beyond our shores can have a significant impact on market dynamics. Let us consider, however, how effectively the Irish agrifood sector has demonstrated its resilience and agility in recent years despite numerous pressures and uncertainties such as Brexit, the Covid-19 pandemic and the Russian invasion of Ukraine, which have adversely impacted the sector. Significant energy price rises and supply chain disruption have fuelled inflation and increased the challenges for farmers, fishers, processors and food businesses. What this period also demonstrated, however, is how resilient the sector is. Stakeholders worked together, with the support of Government, to ensure critical food supply chains were maintained from farmers and fishers all the way to retailers.

During the many challenges of recent times, our family farms have demonstrated adaptability and resilience by continuing to deliver safe and healthy food for Irish and international markets. Living in uncertain times, we need our farm families to be producing safe, sustainable and high-quality food more than ever. The Government has, and will continue, to support our farm families with this objective in mind. The Government and my colleagues, the Minister, Deputy Heydon, the Ministers of State, Deputy Healy-Rae, and the Minister of State-to-be, Deputy Timmy Dooley, are conscious of the challenges facing agriculture, farming and fishing. We remain vigilant in monitoring agrifood sector developments, including farm incomes, viability and structures, the performance of key market commodities, food industry trends and key economic indicators. We are aware of factors which may adversely affect the sector, including geopolitical developments and their potential to impact international trade relations.

We continue to enact policies to safeguard animal health and welfare and monitor diseases which may impact animal health and have adverse economic consequences for production outputs and livelihoods. We as a Government will continue to work at EU level to ensure we have an adequately funded CAP into future which supports our farmers and our sustainable food production goals and contributes to our climate and environmental ambitions.

Ireland's unique collaboration between agrifood stakeholders has resulted in successive, strategic plans to develop the agrifood sector. It is the envy of many other countries and has been replicated, to some extent, by EU Commission President Ursula von der Leyen's strategic dialogue on agriculture, which was supported by stakeholders across the sector. Food Vision 2030 is Ireland's most recent stakeholder-led strategy. Its vision is for Ireland to be a world leader in sustainable food systems, with environmental, economic and social sustainability at its core. This is about developing resilient production models which are economically, environmentally and socially sustainable. It acknowledges that each actor in the food chain, from farm to fork, has an important role in developing a sustainable food system. Ireland is a world leader and sustainable food systems will deliver significant benefits to the agrifood sector, Irish society and the environment.

We are matching our policies to these objectives. Delivering real and measurable improvements in sustainability will also provide the basis for the future competitive advantage of the sector. International customers for Irish products and ingredients want to know that their supplies come from sustainable sources. Equally important is economic sustainability, and one of Food Vision 2030's missions is viable and resilient primary product producers with enhanced well-being. This places the primary producers - farmers, fishers and foresters - at its centre by improving the competitiveness and productivity of primary producers, increasing the creation of value and distributing it fairly, and introducing greater diversification in production systems and incomes. It also improves social sustainability of primary producers in areas such as generational renewal, gender balance, health and safety, mental health and well-being, and wider rural development.

As the Minister mentioned, Food Vision 2030 envisions an increase in the value of agrifood exports to €21 billion by 2030. This will be built on sustainable and steady value growth. We are well on our way to achieving and surpassing that figure. Food Vision 2030 looks to protect and build on Ireland's global reputation as a trusted supplier of high-quality, safe, sustainable food to consumers at home and abroad.

As mentioned by the Minister, the latest CSO figures show that in 2024, Irish agrifood exports reached a record value of €19.2 billion, an increase of 6% in value on the €18.1 billion achieved in 2023. This is also an increase of €1.6 billion on the previous peak levels achieved in 2022. It represents a significant 58% increase in value from €11.6 billion in the decade since 2014 and a doubling from €8.9 billion in 2010.

We will review Food Vision 2030 later this year, with a view to mapping out a vision for the next ten years. I look forward to engaging with this very important exercise.

The world's population is expected to grow to almost 10 billion by 2050. This is expected to boost economic growth by 50% compared to 2013. Emerging economies have increasingly driven global agricultural market developments over the past 20 years and are projected to continue to do so over the next decade. Regional shifts in markets are expected, linked to changing demographics and new economic affluence, including the increasing role of India, south-east Asia, sub-Saharan Africa and China's increasing self-sufficiency. We will continue to support the Irish agrifood sector in remaining agile, resilient and competitive in the face of market shifts. We will draw upon the expertise of our Bord Bia colleagues to facilitate new market opportunities and encourage product diversification.

Research, development and innovation are crucial to ensuring the continued economic contribution of the agrifood sector. The Department of Agriculture, Food and the Marine, including its State agencies, is the third largest Department for expenditure on research. Since 2010 the Department has invested more than €250 million on public good research in agrifood, forestry and bioeconomic areas. Last year, just over €48.5 million was awarded to 76 successful research projects, which will see the creation of 58 postgraduate positions. The availability of research and innovation talent will be a key component in addressing the disruptive impacts of digitalisation, adopting climate-friendly farming, driving new innovative start-ups and attracting and retaining multinational food businesses. The work funded under our research calls is essential to equip farmers, foresters, advisers, scientists, policymakers and the wider agrifood sector with the tools needed to improve economic, environmental and social sustainability in the years ahead. It is also pivotal to developing the next generation of cutting-edge technologies and innovation, and building a highly skilled workforce that will ensure we are globally attractive and competitive as a food island.

I welcome the publication of the European Commission's vision for agriculture and food. It acknowledges that the agrifood sector makes an important contribution to the EU priorities of competitiveness, innovation and rural development. It is also essential to the EU's climate action and environmental protection objectives. Food security is fundamental to the EU's economic security and should not be taken for granted. I am pleased to see how the Commission's approach very much aligns with our Food Vision 2030 strategy, recognising the importance of stakeholder involvement in policy formation and the importance of all aspects of sustainability.

The agrifood sector's contribution to the social and economic fabric of our country cannot be overstated. The sector produces food and ingredients with a global reputation for quality and safety, with a livestock sector built on an invaluable grass-based production system. Global demand for high-quality food is increasing with the growing populations, urbanisation and affluence. The Irish agrifood sector is well placed to play a role in meeting this demand. I very much look forward to supporting all in these efforts.

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