In this week's edition, Colm McCarthy explores a potential pressure point that could develop as Europe moves to reduce reliance on Russian gas. The only route for gas imports into Ireland is a pipeline from Britain supplying a mix of British and Norwegian gas. With the UK no longer a member of the EU, it is unclear as to how gas allocated to Ireland under the future EU gas-sharing deal would be transmitted through the UK network.
In the current environment, clearly the Government must come forward with a strategy as to how it will allow the country access to LNG – whether it be fast-tracking the proposed LNG terminal in north Kerry or a potential State-owned terminal. The consequence of doing nothing is to risk energy rationing – as we see currently developing in Germany. Such rationing will be targeted firstly at industrial use and then spread into the residential sector through heating and potentially electricity supply.
Accounting for around 30% of industrial gas demand, the food processing sector is clearly exposed with dairy processing now heavily reliant on natural gas to fuel dryers.
Meanwhile, along with the immediate development of an LNG terminal, the challenges facing future gas supply should also fast-track the development of a strategy to increase natural gas production through anaerobic digestion.
Office for Fairness and Transparency
The announcement that instead of a National Food Ombudsman as promised in the Programme for Government, that there will be an Office for Fairness and Transparency appears to be a dilution of the commitment given to farmers on regulation of the agri-food supply chain.
The office will be established with limited expectations and perhaps it will confound these. To give it any chance, the minister should establish a budget for the office as opposed to an industry-funded levy. It also requires a high-calibre board and chair to make full use of the investigative powers it will be given.
Rather than dismiss it, it should be given a chance to prove its worth over a limited time period – after which it should be reviewed and confirmed or wound up. The last thing farmers need is another ineffective quango.
Early results on IVF show positive signs
Early results from the 2021 Teagasc study on IVF in dairy cows looks promising. As reported in this week's edition, the pregnancy rate with embryo transfer was comparable to the pregnancy rate of AI. Even though pregnancy losses were higher with embryo transfer, there is potential in the technology and it warrants further research. The opportunities are twofold: on the dairy side, an elite dam could produce up to 16 calves per year and accelerate genetic gain despite more use of sexed semen; on the beef side, dairy cows not suited for breeding dairy replacements could be used as recipient cows for high-merit beef-bred embryos.
Brexit fund must deliver for beef farmers
The clock is ticking for farmers to put forward submissions on how the Brexit Adjustment Reserve (BAR) fund can be used to support the sector.
As Anne Finnegan reports, the €1bn fund must be allocated over the next two years. To date, we have seen fisheries and meat processors allocated funding under the scheme. It is critical that farmers do not get left behind.
While not immediately evident, it is clear that Irish beef exports to the British market are going to face increased competition from Australia and New Zealand. A plan for how the sector can use BAR funding to prepare for this is quickly needed.