Written answers

Thursday, 4 May 2017

Department of Agriculture, Food and the Marine

Agriculture Industry

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

20. To ask the Minister for Agriculture, Food and the Marine the degree to which geopolitical decisions are currently evolving and are likely to impact on agriculture with particular reference to the viability of family farms in the future; and if he will make a statement on the matter. [21055/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

There is no doubt that many geopolitical events are having an impact on the outlook for Irish, European and world agriculture, with, of course, knock-on implications for family farm viability. Examples include Brexit, the Russian ban on food imports from the European Union, and the future of international trade agreements, particularly in light of recent political developments in the United States of America and elsewhere.

Farming in Ireland is an essential part of the social, cultural and economic fabric. It is also part of a wider EU dispensation that values a Common Agriculture Policy built on family farming, food security, high standards of food safety and environmental sustainability.  These are values that we hold dear, and so it is critically important, when we consider the impact of Brexit and other geopolitical events, that the positive contribution of farming to the rural and national economy, and to society in Ireland, and indeed elsewhere in the European Union, is to the forefront in our deliberations.

The ongoing viability of family farms is critical. Teagasc's National Farm Survey highlights that two-thirds of Irish family farms are economically viable or sustainable, albeit in many cases supported by an off-farm income.  The remaining one third are considered vulnerable.  It is therefore essential that on-farm practices and production methods are made as efficient and sustainable as possible, and that the trading opportunities for the agri-food sector are maximised if we are to maintain and improve farm incomes. 

In terms of the key challenges, close to home, very few policy, business or financial decisions will be made over the coming months and years that will not be affected by Brexit in some way, either directly or indirectly.

However, this is especially true for those involved in the agri-food sector, in respect of which all of the analysis that has been carried out to date points to a negative outcome. Indeed, I think it is fair to say that Brexit presents probably the greatest challenge that the agri-food sector has faced since the foundation of the State. That is why I have put in place a number of measures under Budget 2017 to deal with the short-term impact of the fall in the value of sterling against the euro, including the €150 million low-cost loan scheme, agri-taxation measures, additional funding for Bord Bia, and further funding under the Rural Development Programme and the Seafood Development Programme. I and my Department have also been deepening our analysis of the longer-term implications of Brexit, consulting closely with stakeholders and engaging with our Member State counterparts and the European institutions. We will continue to work to ensure the best possible outcome for the agri-food sector from the Brexit negotiations.

More generally, trade for Ireland is very important given that it is a small open economy.  The pursuit and development of new markets for Irish agri-food exports is, therefore, an ongoing and central component of the strategic development of the agri-food sector, as evidenced by its placement right at the centre of Food Wise 2025, the industry’s strategy for development over the coming decade.

I am of the view that it is prudent, if not imperative in the light of Brexit, that Ireland reduces its dependence on the UK as a market for its agri-food exports, of which almost 40% went to the UK in 2016. This requires a focused effort on identifying and developing new, economically viable markets. While our record to date has been very impressive, we have to raise the bar even further. For that reason I have recently outlined a seven-point plan aimed at increasing international market access for Irish food and drink exports. The plan will be implemented by my Department, with significant input from Bord Bia and Irish Embassies around the world, to help increase the footprint of our food and drink exports.

In relation to Free Trade Agreements, Ireland is generally supportive in the implementation of such Free Trade Agreements between the EU and other trading blocs as long as they reflect the interests of Ireland and other Member States. While negotiations with the US, Canada and Japan contain many potential benefits to the Irish Agri-food sector, other agreements such as Mercosur do not offer the same potential, and indeed represent significant threats to the Irish and European agriculture sectors.  I and my Department will continue to adopt a pragmatic, balanced approach to such agreements, consistent with overall Government policy.

Against the background of Brexit, we need to double our efforts in securing access for Irish products and increasing penetration in international markets. We are, however, fortunate in that we have an excellent industry-led strategy for the growth of the sector in Food Wise 2025 which provides a clear road-map for its development.

Comments

No comments

Log in or join to post a public comment.