Stakeholders and politicians must deliver for Irish farmers in the wake of Brexit, IFA president Joe Healy has stated.
The 15th president of the IFA was delivering the concluding remarks at the assocition's Brexit event in Goffs, Co Kildare on Monday.
"No one can be in any doubt after today that the future of Irish farming is at stake in the Brexit negotiations," Healy said.
Earlier in the day, Healy stated that farm incomes in Ireland would take a strong hit as a result of Brexit.
"Farming would be devastated, with average incomes falling by 26%,” Healy told the some 600 attendees at the event.
“Cattle farm incomes would be worst hit, dropping by a massive 37%. That would devastate suckler beef production in Ireland,” he added.
Dairy concerns
Chief executive of Dairygold Jim Woulfe also pointed out concerns the dairy sector have and how it is trying to adapt and deal with the uncertainty of Brexit.
“We have to plan for a tough Brexit, the worst case scenario. We can get comfort from what might happen on Saturday,” he said.
“The equivalent of the 100,000t of cheese going to the UK market is more than a billion litres. We have invested in that and worked hard on developing the by-product, whey. So from that perspective it is absolutely crucial on two fronts.”
On potential World Trade Organisation (WTO) trade tariffs, Woulfe said the cheddar cheese industry cannot sustain such tariffs.
“The transition period needs to be huge,” Woulfe said, longer than two years. “We just came out two years ago from a quota regime and we invested in capacity in as diversified a profile as possible.”
Dairygold is moving towards manufacturing more continental cheeses now rather than cheddar.
Read more from the day as it happened with our archived live blog below.
4.54pm
The future of Irish farming is at stake... words are just words, delivery is what counts
IFA president Joe Healy closes the conference with a summary of the day's events.
“No one can be in any doubt after today that the future of Irish farming is at stake in the Brexit negotiations,” Healy said.
"We need a strong CAP budget after Brexit, of course we as farmers would prefer to get our full income from the market place but in the absence of that we need a fully funded CAP going forward."
4.52pm
4.50pm
In his concluding remarks Creed wants to re-assure farmers that the government is aware of the challenges agriculture faces and is committed to delivering the best possible outcome with Brexit, including unfettered access to the UK market.
“My own personal suspicion is that we are not talking about weeks or months, we are talking about years,” Creed said on the Brexit timeline. Future trade agreements can only be dealt with once the divorce is finalised in 2018.
4.44pm
"We retain 90% of what we process in the UK, in the UK market so export is not as big an issue from that side," Niall Browne said. "We are continuing to invest in the UK as we are in Ireland."
Tara McCarthy says that the challenge with lamb is that its consumption is declining across the EU. Bord Bia is running campaigns to encourage consumption as well as looking for new markets.
4.43pm
Teddy Creedon, IFA hill chair in west Cork asked what was being done in terms of market access for sheep, in particular hill lamb.
Harold Kingston asked what Niall Brown and Jim Woulfe’s businesses are doing in the UK to plan for Brexit.
4.39pm
4.35pm
4.31pm
Tara McCarthy and Jim Woulfe say that access to Asian markets is a slow process due to high levels of paperwork.
“The issue is the barrier to entry,” Woulfe said, referencing going through the Chinese certification with CNCA. “The tidying up that is going on in Asia, knocking on from the Melamine crisis, is huge.”
4.27pm
A selection of questions from the audience:
Joe Costello, beef farmer from Kilkenny, says that only 5% of our beef is exported to international markets outside the EU and queries the slow process in getting access to new ones.
“If the dairy and beef farmers catch a cold here due to Brexit then the grain farmers are going to die,” said IFA grain chair Liam Dunne, who added that bio-security on imports is important to the grain industry.
“Is it now time that we actually created more value from our product that will go to the producer? The benefit at the moment goes to the people in the middle,” Mike Magan, chairman of Animal Health Ireland said.
4.19pm
4.17pm
“53% of beef that British consumers buy is minced,” says Niall Browne. “Under EU regulations it has to be minced within eight days of slaughter which would be difficult for third country exporters to do.”
4.13pm
No matter what way we dice it we are not going to find new markets for our beef straight away
“The morning after the Brexit vote beef prices were down 10c/kg straight away, we’re in a very vulnerable position in the supply chain,” said IFA Livestock chair Angus Woods. “We need confidence in the system.
“No matter what way we dice it we are not going to find new markets for our beef straight away,” Woods said, referring to potential agreements with new countries.
4.11pm
“This is a market that was built up over 40/50 years,” Sean O’Leary IFA dairy chairman. “You don’t find a new one overnight.”
4.06pm
The cheddar cheese industry cannot sustain WTO trade tariffs, according to Woulfe.
“The transition period needs to be huge,” Woulfe said, longer than two years. “We just came out two years ago from a quota regime and we invested in capacity in as diversified a profile as possible.”
Dairygold is moving towards manufacturing more continental cheeses now rather than cheddar, for example its plans to invest in a new Jarlsberg cheese plant in Mogeely, Co Cork.
4.03pm
How serious would a bad outcome be to the dairy industry?
“We have to plan for a tough Brexit, the worst case scenario. We can get comfort from what might happen on Saturday,” Jim Woulfe, CEO of Dairygold. “The equivalent of the 100,000t of cheese going to the UK market is more than a billion litres. We have invested in that and worked hard on developing the by-product, whey. So from that perspective it is absolutely crucial on two fronts.”
4.00pm
“There is no sugar coating this, if there is a hard Brexit it will have major implications for Ireland,” said CEO of Dawn Meats Niall Browne. If we suffer from major market disruption he called on the EU to support the farmers and agri-businesses affected. “We will need employment subsidies, similar to those during the financial crisis.”
3.55pm
Justin McCarthy asks what amount of time it would take to move our exports to the UK from 50% to 20%.
“Over a third of our exports are going to international markets and another third to European markets,” Tara McCarthy, CEO Bord Bia. “We’re as dependent on the Chinese to move fast as our will to move fast.”
3.49pm
3.46pm
The next session is a panel discussion with:
Niall Browne, chief executive, Dawn MeatsJim Woulfe, chief executive, DairygoldTara McCarthy, chief executive, Bord BiaSean O’Leary, IFA dairy chairmanAngus Woods, IFA livestock chairmanListen to an interview with Tara McCarthy in our podcast below:
Listen to "Bord Bia's Tara McCarthy on Brexit and farmers" on Spreaker.
3.41pm
IFA sheep chairman John Lynskey asks about the future of EU's tariff rate quota for lamb from New Zealand. There is no clear answer from the minister on this point.
3.37pm
Farmers bring up the issue of currency volatility. Justin McCarthy says the Russian ban created a precedent in EU intervention in the market to respond to a geopolitical event. Brexit should trigger the same response. Creed replies that the sterling exchange rate is broadly in line with the previous years' average, but an overall quantifying of Brexit's costs is part of Ireland's lobbying of the EU Brexit negotiating team headed by Michel Barnier.
3.31pm
Asked about the prospect of the UK general election, Creed says the prospect of a landslide Conservative victory is not necessarily a good omen for Ireland. "To engineer a soft Brexit it was better to work with a minister who had a slim majority," he said. By contrast, a large majority "tends to make governments less accountable".
3.29pm
Creed says the prospect of Irish beef being displaced to countries such as Germany, France, the Netherlands etc. is beginning to resonate with them because their farmers who largely produced for those domestic markets could be affected.
3.26pm
Irish Farmers Journal editor Justin McCarthy points out that "diversifying from what is one of the highest-priced beef markets in the world is not without risk". Creed says it would be difficult to replicate a market that would be as rewarding as the UK market, but opportunities exist in the rest of western Europe and in Asia.
3.22pm
Yet Creed admits a "fear" that a UK cheap food policy could bring in beef from south America that is not raised to the same standards we have in Europe. He adds that there is no upside to a hard Brexit for Irish agriculture.
3.19pm
Creed quotes Roy Keane: "Fail to prepare, prepare to fail." He says there were government plans for Brexit since May last year. The hope was to shred the file" after the UK referendum – instead, he was able to "hit the ground running". Yet this is not a guarantee of the outcome of the negotiations, and continued vigilance is required, he warns.
3.17pm
Read more about Minister Creed’s seven-point Brexit plan here.
3.14pm
On the one hand, the minister says he is working hard to open alternative markets, citing especially Asian and North African/Middle Eastern countries. But he also insists that Ireland must retain "unfettered access" to the UK market after Brexit.
3.12pm
"The UK needs food," says Creed. "It will still be a net importer after Brexit." He adds that Irish suppliers have strong business relationships in the UK where there have been high starndards of food safety, animal welfare and environmental protection.
3.11pm
Labelling, logistics, etc. have the potential of increasing costs for the sector, says Creed. Integrated supply chains across the border need to be protected. All this is pleading for agriculture to be treated as a priority, and "this is happening".
3.08pm
It does not only go one way: "We are the main export for the UK's agri-food exports," says Creed.
3.06pm
"We are just at the beginning of very complex negotiations, we do not control all the levers that affect the outcome," says Minister Creed. However, "we have been in very complex negotiations before".
3.03pm
Next up is Minister for Agriculture Michael Creed. He says the positive contribution of farming to our economy and society must be at the forefront of issues in upcoming Brexit negotiations. "I can assure you that as a government, it is to the forefront of ours."
3.01pm
Although most reporting on Brexit is negative, Muldoon also cites a Grant Thornton report identifying Brexit as an opportunity to reinvent Ireland's agri-food industry from a supplier of raw quality foods to one of branded products, with more secondary processing taking place here.
2.59pm
"The Irish Government must prioritise Brexit above all else," says Muldoon, with a focus on free trade of agricultural products, the equivalence of animal health and environmental standards as well as sustained CAP funding.
2.54pm
But first, FBD chief executive Fiona Muldoon says Brexit will affect every household in the country. She adds that the resilience of the Irish farming industry has been built on focusing on those things we can control.
2.50pm
We're back live from Goffs in Co Kildare for the afternoon session of the IFA's Brexit event for farmers. This will see an address by Agriculture Minister Michael Creed and a panel discussion on the next steps for Irish farmers and the agri-food sector.
1.35pm
The conference is breaking up for lunch, in the afternoon it will be addressed by Minister for Agriculture Michael Creed. The afternoon session will be chaired by editor of the Irish Farmers Journal Justin McCarthy. Log back in at 2.30pm for the next session.
1.33pm
Some take home messages from the panel:
Rowena Dwyer - This is hugely important for us, we need the EU to have a strategic objective.
Martin Merrild - We are in this together and in COPA we are doing everything we can to make European farmers to understand that.
Gavin Barrett - With Theresa May I would watch what she does, not what she says.
1.30pm
1.25pm
1.23pm
Martin Merrild states that the support for the CAP budget is there in taxpayers across the EU. But when the UK leaves each member state must be willing to contribute more to the European budget according to Mairead McGuinness.
"The CAP represents great value for money in our economy," says Rowena Dwyer.
1.16pm
Some interesting questions from the audience:
“How does Mairead know there won’t be a hard border? We have a problem in the Connaught region especially with agricultural produce going across the border,” asks IFA regional chair Padraig Joyce.
“Farm incomes have fallen totally behind compared to all other sectors of the economy, massively. Without working women and without off-farm jobs most farms wouldn’t even be there. CAP is a big part of our income, has been for a long time but it is historically based. Why does any inflation argument not come into any agricultural debate around incomes," asks Adam Goodwin from Kildare, west Wicklow IFA.
"Farmers are being snowed under with paperwork and legislation, simplification has got to start meaning something," says James Murphy, south leinster IFA chairman.
1.10pm
"Theresa May has pulled away from saying that they don't want to be a part of the customs union to saying something softer than that, we must welcome the move," according to Mairead McGuinness.
1.07pm
Joe Butler, from the food inspection authority EWFC, raises the point that a hard border will be needed.
“If we want a soft border, it has to be one that does not have the potential for cheap imports coming into the UK, arriving in Ireland. We are going to have to have a strong border that checks things as technical as country of origin,” Rowena Dwyer, IFA.
1.00pm
12.57pm
“I think that Europe wants a good trade with the UK,” says Mairead McGuinness. “But in truth we have a two year withdrawal period and a three year transition.
“But it is my view that if the UK has chosen to leave but wants to cherry pick what they keep, for example research and development, then they have to pay for that."
Listen to "Mairead McGuinness speaking at IFA Brexit event" on Spreaker.
12.55pm
Listen to our interview with panel speaker Barclay Bell here:
Listen to "Barclay Bell at IFA Brexit event" on Spreaker.
12.50pm
12.48pm
We're sticking with our sporting theme today, but moving from hurling to golf.
“Until there is less emotion in the debate then I think that we won’t get into a good place,” MEP Mairead McGuinness. “If you want to get the benefits then you have to be a member, it works the same way in a golf club.”
12.46pm
"If a lot of the issues relating to trade could be resolved and if we remain part of the customs union we will have a common trade area with no borders... that is what we should be looking for," Rowena Dwyer, IFA.
12.45pm
COPA president Martin Merrild emphasises that Europeans are "all in this together".
We have not spent enough time talking about “how important the EU is” and access to the single market, according to Martin Merrild. “What we spend a lot of time on in our meetings in COPA is that we really have to understand we are one market. If one country finds a new market then that benefits all of us.”
12.40pm
12.30pm
We're into the panel discussion here now.
What now for the EU 27 and the UK?
Panel:
Gavin Barrett, Jean Monnet Professor of European Constitutional and Economic Law, UCD
Barclay Bell, President of the Ulster Farmers Union
Rowena Dwyer, IFA chief economist
Mairead McGuinness, First Vice president of the European parliament
Martin Merrild, President COPA
12.26pm
Catch up with Joe Healy and Phil Hogan's speeches earlier here in Goffs.
12.24pm
In his three years as commissioner, Hogan says he has "never seen such unanimity" in recognising that Ireland is uniquely exposed to a hard Brexit including on border issues, and expects this to be reflected positively at the EU summit on Saturday.
12.20pm
IFA animal health chairman Bert Stewart warns that "diseases don't know borders" and asks about the prospect of different health status on the island of Ireland. Phil Hogan defends the Good Friday agreement but does not offer a clear guarantee on the future of all-Ireland animal health management.
12.17pm
Hogan says he doesn't need to be persuaded of the importance of agriculture to the Irish economy. "I couldn't ignore the farmers, or I wouldn't have been elected," he says. He adds that there is no need for a Brexit minister – "this is too important," he says, arguing that the Taoiseach should be the person co-ordinating a whole-government approach on Brexit.
12.13pm
Farmers say they are worried about the potential trade deal with Mercosur countries and competition from South American beef. "If there is to be a deal made on any free trade agreement, the standards of quality of food will have to be the same as in the European Union," Hogan replies. He adds that other trade deals, such as those with Japan and Mexico, would be positive for Irish agri-food exports – with hope for good beef prospects and a signature this year in the case of Japan.
12.11pm
Beef farmers share their concerns. "We cannot afford a cut in direct payments," says one. "We absolutely need to keep this budget as it is and I would like to hear a commitment from you," he talls Hogan. "If the money is there, I won't be shy about spending it. But I don't make the budget," the Commissioner replies, explaining that this is decided by EU heads of government. "You may talk to Mr Kenny in Mayo about that."
12.09pm
#IFAbrexit is currently the top trending topic on Twitter in Ireland.
12.08pm
"Brexit has caused serious market disturbance" and the European tools available in these cases should be used, says Joe Healy. "Maybe we could do more in this area," Phil Hogan replies.
12.04pm
First questions from the floor are on sterling fluctuation and level of commitment from officials to defend Irish farmers.
11.59am
Phil Hogan sounds a positive note on the start of exit negotiations between the UK and the EU. "We're not going to be in the business of punishment beatings for the people of the UK. We have to respect their decision," he says. As for CAP funding, he adds: "Are the other 26 willing to put money into the black hole left by the British? That is the test."
Moderator Damien O'Reilly continues the hurling metaphore: "Maybe we are playing the wind in the first half."
11.53am
Healy concludes with a warning to all involved that upcoming Brexit negotiations will be "senior hurling" – "The livelihoods of thousands of farm families and the future of the agriculture and food industry are at stake in these negotiations."
11.48am
Round of applause for Healy's call to bring the UK into a free trade agreement with the EU rather than leave it go to other regions of the world to source cheap food: "Cheaply produced beef from Brazil and other Mercosur countries cannot be allowed onto British supermarket shelves alongside our high-quality beef," he says.
11.47am
Healy warns of the consequences of a hard Brexit without a free trade agreement between the UK and the EU: "Farming would be devastated, with average incomes falling by 26%. Cattle farm incomes would be worst hit, dropping by a massive 37%. That would devastate suckler beef production in Ireland."
11.44am
Healy explains the complex knock-on effects of Brexit, from displacement of Irish beef to crowded continental European markets to the loss of outlets for our specialised cheddar production.
11.43am
Another round of applause for Healy's call to safeguard CAP funding.
11.41am
Healy reminds the audience of the importance of trade with the UK for Ireland's farming sector, and highlights the risk of a hard border with Northern Ireland. "This would seriously disrupt trade and have a severe impact on the daily lives and businesses of farmers, particularly those in border counties, he says. "We cannot allow that to happen," he adds, drawing a round of applause.
11.38am
The next speaker is IFA president Joe Healy. He welcomes Phil Hogan's speech but warns: "You and your colleagues cannot allow our livelihoods to be destroyed as a result of Brexit." He adds: "A fully funded CAP must be secured."
11.35am
"The EU will support Ireland through this difficult period," says Hogan."Ireland can certainly get a good result and will get a good result if we work closely together."
11.33am
However, he says that if the EU budget goes down in the future, agriculture which accounts for 38% of it will be affected. But "we will make the case" for a well-funded CAP, he adds.
11.31am
Hogan: A bilateral deal between Ireland and the UK "is an absolute non-starter".
11.29am
Hogan mentioned the "financial settlement" between the EU and the UK. Although he doesn't go into the details, this is understood to include CAP funding after the UK leaves the EU and stops contributing to the European budget. "As all commitments are taken jointly with the other Member States, if they are not paid for by the UK, the other 27 Member States will have to foot the bill," he says.
11.26am
Hogan says a free trade agreement between the UK and the EU after Brexit is "the way forward": "It is my hope that, over the course of the coming months, the British government will recognise that the best way to maintain the freest possible trade in goods such as agri-food products is to remain in the Customs Union, and that sense will prevail."
11.25am
"You have been through the pain of farm to fork traceability" after the BSE crisis, Hogan tells Irish and British farmers. "Would British farmers and consumers accept hormone beef and chlorine chicken on their supermarket shelves? I seriously doubt it."
11.20am
Hogan welcomes the prospect of the UK snap election, hoping that Prime Minister Theresa May will have more freedom to manoeuvre with a larger majority. "Some of the crazier ideas about crashing out of the EU without a deal, or falling back on WTO rules, are less in evidence," he says.
11.15am
European Commissioner for Agriculture Phil Hogan is the first speaker. He spoke with the Irish Farmers Journal on arrival:
Listen to "Phil Hogan at IFA Brexit event" on Spreaker.
11.08am
The audience includes TDs, MEPs, representatives of industry bodies and diplomats from several European countries. One of them is Martin Merrild, chairman of the European umbrella farming organisation COPA. He said today's event would send a message to EU decision-makers: "We want them to do all they can so that we can stay in a situation where we have a common agricultural policy as common as it can possibly be, and of course most importantly, that we still have a single market in Europe." Listen to him below:
Listen to "EU farm leader Martin Merrild on Brexit" on Spreaker.
11.06am
IFA director general Damian McDonald opens the conference.
11.03am
IFA president Joe Healy tells the Irish Farmers Journal: “Today is about getting the message across to our politicians, as the Brexit negotiations are about to commence, the need for the least possible disruption to the trading link between the EU and the UK.” Listen to Joe Healy below and read more here.
Listen to "IFA president Joe Healy on Brexit" on Spreaker.
10.59am
The large auction room at Goffs is filling up.
10.53am
One of today's speakers is Jim Woulfe, chief executive of Dairygold. He told the Irish Farmers Journal tariffs on Ireland's large cheese exports to UK could take away half of the milk price currently paid to farmers to manufacture this product. Listen to him in our podcast below and read more here.
Listen to "Jim Woulfe on Brexit and cheese exports" on Spreaker.
10.45am
Welcome to Goffs, where around 600 farmers are gathering to discuss the consequences of Brexit with IFA and industry representatives throughout the day. The proceedings will start shortly and will be live-streamed here.
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