Proposals for the reform of the EU Common Agricultural Policy should be given a guarded welcome, even if serious reservations exist because of their impact on beef and sheep production and on employment in the meat industry.
The EU Agriculture Commissioner, Dr Franz Fischler, has recommended the "decoupling" of payments from production levels, both to keep down costs in an expanded EU and to avoid the creation of food mountains. A system of direct payments has been advocated and the incomes of small and medium-sized farmers should rise.
The IFA president, Mr John Dillon, complained that beef farmers would be put out of business and predicted increased foreign imports. The Irish Cattle and Sheep Farmers' Association, on the other hand, welcomed the proposals. The Minister for Agriculture, Mr Walsh, has expressed concern about some aspects ahead of today's meeting with farm interests.
Work on a mid-term review of the Common Agricultural Policy has been in progress for years and the proposals - if adopted - will be implemented over a 10 to 12-year period. Eighteen months ago, after a succession of food scandals, the Irish Commissioner for Health and Consumer Protection, Mr David Byrne, joined with Dr Fischler in advocating changes that would switch the emphasis from food production to food safety, quality controls, animal welfare and the preservation and development of rural communities.
There is no denying the proposed reforms would have a dramatic effect on Irish agriculture. A report commissioned by the Department of Agriculture estimated the beef suckler herd would decline by 30 per cent by the year 2010. And the same result was predicted for sheep. As a consequence of reduced output, meat factories would cut their workforce. However, a reduction in beef and sheep production was expected to have a knock-on effect both in terms of higher prices and improved quality, with the bulk of exports going to the European market. Farm incomes were predicted to rise by 11 per cent overall.
The expected drop in the number of cattle and sheep would have an immediate impact on the production of greenhouse gases and, as a result, this State could expect to meet its commitments under the Kyoto agreement. And because agriculture is responsible for about 60 per cent of water pollution, improvements could also be anticipated in that area. It is important to stress that these are only proposals. Ireland has a good case to make for special treatment because production in the beef and sheep sectors is expected to decline by almost double the EU average. And up to 1,000 jobs may be lost in the meat industry. Mr Walsh has months of tough negotiations ahead.