Thursday, 9 May 2019
Department of Agriculture, Food and the Marine
The agrifood sector is of critical importance to the Irish economy, and its regional spread means it underpins the socio-economic development of rural areas in particular. Brexit has the potential to have a very significant impact on the sector, given its unique exposure to the UK market, which accounted for 38% (€5.2 billion) of agrifood exports last year.
There are on-going discussions with the Commission regarding the difficulties which would face Ireland in the event of a no-deal Brexit, and the assistance that might be required for its agriculture food and fishery sectors. Avoiding a no-deal Brexit continues to be the Government’s overriding policy priority.
It is clear that, in the event of a no-deal Brexit, the impact of the UK tariff regime as announced would have had a significant impact on beef prices and on beef farm incomes, as a result.
I therefore have held a number of discussions with Commissioner Hogan regarding the potential impact of a disorderly Brexit on the sector. I have stressed the need for the Commission to be ready to deploy a range of measures to mitigate the potential impacts on agrifood and fisheries, including through traditional market supports and exceptional aid under the CAP's Single Common Market Organisation regulation (Regulation (EU) No 1308/2013), as well increased flexibility under State Aid regulations.
However, it is also important to acknowledge that the past few months have been very difficult for beef farmers in particular, following a difficult year in 2018 due to weather conditions. There has been a prolonged and exceptional period of depressed prices since last autumn, with the ongoing uncertainty surrounding the outcome of Brexit, among other factors, contributing to this market disturbance.
In light of the on-going depressed market prices, I have, in discussions with Commissioner Hogan and my EU counterparts, said that I believe that the deployment of exceptional measures under the CMO Regulation, to provide targeted aid to farm families who have suffered a sustained reduction in returns from the market, is now required. I made an intervention to this effect at the April meeting of the Council of Agriculture Ministers, and my officials have followed this up with a detailed submission, which is under consideration by Commission officials.