HOMEGROWN SUCCESS stories should be widely celebrated. Agriculture and the food and drink sectors, once regarded as old-fashioned backwaters, have taken on Cinderella-style roles and are contributing significantly to the economy and to the protection of local employment. Incomes and earnings have grown substantially in recent years. Confidence is high. And world commodity markets are buoyant, offering the prospect for further growth.
Bord Bia reported a 12 per cent increase in the value of food and drink exports during the week, with the dairy and meat categories doing particularly well and achieving record sales. A survey of the 600 or so food and drinks firms involved reflected increased optimism, with majorities describing their prospects as good or very good.
The agri-food sector is an awakening giant. It now contributes €24 billion to the economy and, when employment inputs, processing and marketing are included, it accounts for 10 per cent of all employment. Unlike the high-tech multinational sector which is often the subject of much more attention, profits are not repatriated. As a result, the domestic economy benefits to a greater extent as earnings are spent locally.
Farm incomes have reflected these export successes, rising by about 30 per cent in the past year alone. As urban living standards decline, farm families are doing well. Agriculture is, however, a cyclical industry and it went through a number of tough years in the mid-2000s. But the upswing in average farm incomes between 2009 and 2011 was staggering, jumping from €9,500 to €21,500.
When you consider that full-time farmers earn four times more than the average income, it is clear that life on the land has become a profitable business. Student numbers in agricultural colleges have doubled and applicants are now being turned away because of a shortage of teachers and capacity.
However, do not expect farmers to trumpet their successes. In bad times, they hope for government assistance. In good times, they warn that interference will bring back the bad times. They are opposed to the introduction of a broadly based property tax. Four years ago, figures produced by the Department of Agriculture showed they shouldered 1.3 per cent of the income tax burden. It also emerged that one in 10 full-time farmers had not registered with the Revenue Commissioners.
Despite recent trends, farmers are wisely cautious about expansion. EU subsidies still account for 70 per cent of farm incomes. The Common Agricultural Policy is due to be revised this year and cuts in direct payments would affect investment decisions.
The abolition of EU milk quotas in 2015, however, will offer opportunities and there are plans to increase production by 50 per cent by 2020. Ireland exports 90 per cent of the beef it produces along with about 80 per cent of other outputs. The entire sector has come of age as a highly impressive production and processing operation.