Agriculture and the food and drinks industry represent the most important parts of the domestic economy, providing 10 per cent of all employment and underpinning local communities. They are interdependent operations that complement and, on occasion, go to war with each other. In recent years, factory and retail elements have become more aggressive in setting prices and it is vital to ensure that farmers receive a fair return. Governments have been reluctant to get involved and it may require intervention at EU level to promote greater equity.
Industry offers opportunity, through added value and new products. For too long, government policy concentrated on maximising farm output, rather than encouraging the innovative use of raw materials. That balance has changed, to the benefit of all concerned. The impact was evident at the National Ploughing Championships when hundreds of commercial organisations displayed expensive products and high-tech machinery and farm families enjoyed the largest outdoor exhibition and agricultural trade show in Europe.
For the past three years, beef and sheep farmers have had a tough time. Some of it was weather-related, arising from a shortage of winter fodder and the cost of emergency feedstuffs. That situation was compounded when a decline in the consumption of beef and lamb within Europe, combined with overproduction, saw factory prices fall. What infuriated many farmers was that while animal prices fell dramatically, the cost of finished products in supermarkets remained relatively static.
There has been talk of beef farmers abandoning the State’s quality assurance scheme in protest at this situation. That would be a mistake. It would jeopardise Ireland’s hard-won image as a producer of traceable, premium beef and leave farmers and factories vulnerable in the event of a future scandal involving meat products. Farming has become a two-speed business. While beef and sheep farmers are struggling, the dairy sector is powering ahead and gearing up for the removal of a EU cap on milk production. As with the beef sector, however, where output was planned to rise by 20 per cent, there may be unforeseen risks. Farming is a cyclical business. Inherent price uncertainty has been exaggerated by international speculative trading, the concentration of plant ownership and climate change.
In meeting future challenges, a closer and more equitable relationship between Irish producers and processors will be required. The development of new food products, preservation techniques and health supplements will provide impetus for the sector, supported by international marketing. Existing farmer/factory tensions should be resolved. It is only through collaboration and a planned approach that the sector’s long-term potential will be realised.