AGRICULTURE MAY be the largest industry in the State but it has consistently failed to live up to its potential. There have been good reasons for this: small farm holdings, a shortage of investment, a lack of innovation and an unhealthy dependence on EU intervention storage. There have been some positive developments in recent years as various agri-food businesses established and promoted added-value products. But much remains to be done.
Publication of the Food Harvest 2020 report by Minister for Agriculture Brendan Smith this week shows what could happen if Government strategies across the sector were more focused and co-ordinated. An expert group from the agri-food sector predicted that, with proper policies and funding, milk output could grow by 50 per cent and beef output by 20 per cent. The value of overall exports could rise by more than 40 per cent in 10 years. A green, ecologically friendly image was seen as a key element in such a development strategy, particularly in the promotion and marketing of new products.
Seven years ago, Franz Fischler, a former EU agriculture commissioner and friend to Ireland, urged a similar course of action. He said the Irish dairy industry had lost touch with what the European consumer wanted and had failed to adapt to market realities. There was too great a dependence on intervention storage. The same held true for the beef sector. He urged a radical overhaul of food production, product innovation and marketing.
The fact that Taoiseach Brian Cowen presided at the launch of this week’s report will, hopefully, mean that its implementation will receive unambiguous Government backing. That will be necessary if up to 4,000 jobs are to be created within the processing and production sectors. Rural Ireland has been severely affected by the collapse in construction and many young men have returned to work on the family farms. Their futures will be directly affected by a renegotiation of the Common Agricultural Policy that is getting under way in Brussels.
The outcome of those talks will not become known for two years but, in the meantime, there is an opportunity to build on existing structures and rejuvenate rural communities. Long-term planning is essential. In that regard, striking a balance between intensive and productive farming, while protecting the quality of the environment, is of great importance. If water pollution increases because of nitrate enrichment and poor farming practices, promoting an upmarket image for Irish food and drink will become extremely difficult.
A restructuring of land holdings will also be necessary to encourage greater productivity. The report talks about the agri-food industry having to improve its cost competitiveness by 20 per cent, relative to its competitors. We are the lowest-cost producers of milk and beef in Europe and it is extraordinary that consumers here pay the highest prices for these items. Changing that relationship would help domestic competitiveness, promote a wider sampling of products by visiting tourists and encourage innovation.