Seldom have we seen the EU beef market so depressed. Not only are prices on the floor but the grey clouds of a no-deal Brexit continue to gather. An EU without the UK would see the internal market left with close to a one million tonne beef surplus. The impact on price would be heightened by the fact that many of the tools available to the European Commission to deal with such a shock, such as export refunds or intervention, have either been disabled or would be ineffective in their current form.
A trend that also has to be considered is the extent to which the beef industry has, to date, lost the environmental argument. All data profiling beef consumption levels over the past number of months reinforce the view that an increasing number of consumers view eating less beef as doing their bit for the environment.
It is a trend that has received little in the way of attention but one that – if unchecked – could have a serious impact on beef consumption, not only in the EU but globally.
Against this backdrop, any move by the European Commission to agree a trade deal with South American countries for increased beef access will be nothing other than a betrayal of EU beef farmers. It is a betrayal in which the Irish Government will be complicit if it fails to use its veto to block any deal that puts further pressure on the EU beef market and jeopardises the future of the Irish beef sector.
Despite this, it appears that the Commission is preparing to close a trade deal that includes increased beef access with the group of South American countries that form Mercosur. How the Commission considers that now is a good time to do a deal is beyond comprehension.
EU and Irish beef farmers would have expected Commissioner Phil Hogan, who understands the complexities, to have defended EU production values at a time when its industry is at its most vulnerable.
There is no evidence that Clones, Ballyhaunis or any other rural locations will do anything other than lose from a Mercosur deal
At a basic level, it is ridiculous to continue a discussion on beef access to the EU based on offers that were made when there were 28 member states. With biggest net beef importer about to depart, it is at best negligent on the behalf of the Commission that the offer isn’t reduced accordingly from the 70,000t officially on the table. This is made even more necessary given that the UK has already declared its position on beef access if it leaves the EU without a deal: it will create a 230,000t tariff-free all-comers import quota – a move which would see South American beef flood into Ireland’s largest beef export market.
If the EU concludes a Mercosur trade deal by sacrificing beef producers, we can expect long proclamations about how the wider economy will benefit from the sales of industrial products and pharmaceuticals. No doubt there would be benefits but we should be very clear: these will be paid for at the expense of Ireland’s beef sector – our largest indigenous industry where every euro generated circulates in the local economy. There is no evidence that Clones, Ballyhaunis or any other rural locations will do anything other than lose from a deal that will decimate our beef industry. This isn’t just a vested interest claim – it is recognised in the cumulative impact assessment of a trade deal carried out by the EU itself.
Not only would a Mercosur deal be a betrayal of farmers, it would also be a betrayal of the EU’s environmental commitments in relation to tackling climate change. If the EU decides to widen access for Brazilian beef sales into the EU, it is effectively endorsing the Brazilian policy on land use where an area of forest and savanna the size of Co Leitrim was cleared in the month of May this year simply to fuel growing beef export.
It is incredible that a policy could be devised that recommends the afforestation of grassland in Ireland and replaces Irish beef output with beef produced on cleared lands on the other side of the world.
With a Mercosur deal, the EU is not just abandoning beef producers, it is also abandoning its climate change and environmental principles, and indeed its commitment to food safety standards.
Crops & spreaders: showcasing a vibrant sector
Crops & Spreaders 2019 at Teagasc's Oak Park. \ Phill Doyle
The past few weeks have been busy in tillage. As final protection sprays were being applied, the season for seminars and open days began. Such events are organised for the continuous education of those in a sector where there is only one day and one opportunity to make decisions that stand for the lifetime of that crop.
The tillage sector is unquestionably technologically advanced. Yet it is worth noting from last week’s celebration of the past 50 years of the Irish Tillage and Land Use Society (ITLUS) that it was within that period that the debate opened on the usefulness of tramlines and the practice of fungicide application. This only began around 40 years ago.
Since then, the sector has been very receptive to technology and research guidance and that continues. Events like the Irish Seed Trade Association outing to look at the Department’s variety evaluation trials at Backweston earlier this week are immensely important. In this regard, the Department and its staff deserve huge praise for the service they provide to the sector. It is great to see this evaluation work being expanded through the efforts of those same people to look at aspects of variety genetics that are set to become increasingly important – aspects such as BYDV evaluation and ramularia tolerance, as well as early drilling and variety performance without plant protection.
The tillage sector has always been good at utilising such information and taking on board research findings. This week sees the biennial open day at Teagasc’s crop research centre at Oak Park. This is a tremendous showcase for modern crop research and what is on show is the envy of many other countries, even in the EU. But while we recall that we are producers of very high yields in a global context, this comes at a cost which must always be contained within an optimum spend. This is where the very valuable work undertaken by Teagasc researchers and delivered by Teagasc advisers comes to the fore.
That said, last week’s ifac report found very favourable income levels for the top performers in the sector who are obviously making very respectable incomes on modest land rental cost. The tillage sector is far from irrelevant to modern Irish agriculture. As well as being a critical provider of raw materials to the feed, livestock, malting, brewing and distilling industries, it also provides the raw materials for our porridge, food oil and other foods, plus much of our potatoes, fruit and veg.
This sector has an important part to play in the balancing of Irish agriculture and land use in terms of climate change pressures and other environmental issues. It is very low on greenhouse gas emissions and generally good on other environmental concerns. It is also far more regulated than other sectors in this regard.
The sector represents significant economic turnover in local communities. It has considerable need for machinery, repairs, builders, transport, tyres, fuel, etc, as well as its standard inputs such as fertiliser and plant protection products.
The sector is very important to rural Ireland as it represents a significant turnover on a hectare basis.
Moorepark open day: value of dairying on display
Our Focus supplement profiles next week’s Teagasc Moorepark dairy open day. Also this week, Ciaran Fitzgerald details the value of the dairy sector. The economic dividend from the growth in output extends far beyond the farm gate. The real measure of this is the level of expenditure in the national economy. While the headline figure of €200bn in exports is often used to showcase the importance of multinationals, the level of expenditure in the Irish economy was €20bn. Although the value of exports from our agri-food sector was considerably less, the level of expenditure is comparable at €15bn due to the heavy reliance on domestic inputs.
Wild Atlantic Way: Donegal’s untapped potential
Our Wild Atlantic Way of Farming series continues this week. Farmers in Donegal can face significant challenges with climate and land type, while local communities remain disadvantaged by issues such as access to broadband. Farmers and other stakeholders made clear to our team that there is untapped potential. This ranges from more output from under-grazed uplands to developing tourism. However, harnessing the true potential of Donegal will require significant financial assistance from Government. Policy-makers must ensure that the farmers and rural communities furthest from Dublin are not forgotten.
Seldom have we seen the EU beef market so depressed. Not only are prices on the floor but the grey clouds of a no-deal Brexit continue to gather. An EU without the UK would see the internal market left with close to a one million tonne beef surplus. The impact on price would be heightened by the fact that many of the tools available to the European Commission to deal with such a shock, such as export refunds or intervention, have either been disabled or would be ineffective in their current form.
A trend that also has to be considered is the extent to which the beef industry has, to date, lost the environmental argument. All data profiling beef consumption levels over the past number of months reinforce the view that an increasing number of consumers view eating less beef as doing their bit for the environment.
It is a trend that has received little in the way of attention but one that – if unchecked – could have a serious impact on beef consumption, not only in the EU but globally.
Against this backdrop, any move by the European Commission to agree a trade deal with South American countries for increased beef access will be nothing other than a betrayal of EU beef farmers. It is a betrayal in which the Irish Government will be complicit if it fails to use its veto to block any deal that puts further pressure on the EU beef market and jeopardises the future of the Irish beef sector.
Despite this, it appears that the Commission is preparing to close a trade deal that includes increased beef access with the group of South American countries that form Mercosur. How the Commission considers that now is a good time to do a deal is beyond comprehension.
EU and Irish beef farmers would have expected Commissioner Phil Hogan, who understands the complexities, to have defended EU production values at a time when its industry is at its most vulnerable.
There is no evidence that Clones, Ballyhaunis or any other rural locations will do anything other than lose from a Mercosur deal
At a basic level, it is ridiculous to continue a discussion on beef access to the EU based on offers that were made when there were 28 member states. With biggest net beef importer about to depart, it is at best negligent on the behalf of the Commission that the offer isn’t reduced accordingly from the 70,000t officially on the table. This is made even more necessary given that the UK has already declared its position on beef access if it leaves the EU without a deal: it will create a 230,000t tariff-free all-comers import quota – a move which would see South American beef flood into Ireland’s largest beef export market.
If the EU concludes a Mercosur trade deal by sacrificing beef producers, we can expect long proclamations about how the wider economy will benefit from the sales of industrial products and pharmaceuticals. No doubt there would be benefits but we should be very clear: these will be paid for at the expense of Ireland’s beef sector – our largest indigenous industry where every euro generated circulates in the local economy. There is no evidence that Clones, Ballyhaunis or any other rural locations will do anything other than lose from a deal that will decimate our beef industry. This isn’t just a vested interest claim – it is recognised in the cumulative impact assessment of a trade deal carried out by the EU itself.
Not only would a Mercosur deal be a betrayal of farmers, it would also be a betrayal of the EU’s environmental commitments in relation to tackling climate change. If the EU decides to widen access for Brazilian beef sales into the EU, it is effectively endorsing the Brazilian policy on land use where an area of forest and savanna the size of Co Leitrim was cleared in the month of May this year simply to fuel growing beef export.
It is incredible that a policy could be devised that recommends the afforestation of grassland in Ireland and replaces Irish beef output with beef produced on cleared lands on the other side of the world.
With a Mercosur deal, the EU is not just abandoning beef producers, it is also abandoning its climate change and environmental principles, and indeed its commitment to food safety standards.
Crops & spreaders: showcasing a vibrant sector
Crops & Spreaders 2019 at Teagasc's Oak Park. \ Phill Doyle
The past few weeks have been busy in tillage. As final protection sprays were being applied, the season for seminars and open days began. Such events are organised for the continuous education of those in a sector where there is only one day and one opportunity to make decisions that stand for the lifetime of that crop.
The tillage sector is unquestionably technologically advanced. Yet it is worth noting from last week’s celebration of the past 50 years of the Irish Tillage and Land Use Society (ITLUS) that it was within that period that the debate opened on the usefulness of tramlines and the practice of fungicide application. This only began around 40 years ago.
Since then, the sector has been very receptive to technology and research guidance and that continues. Events like the Irish Seed Trade Association outing to look at the Department’s variety evaluation trials at Backweston earlier this week are immensely important. In this regard, the Department and its staff deserve huge praise for the service they provide to the sector. It is great to see this evaluation work being expanded through the efforts of those same people to look at aspects of variety genetics that are set to become increasingly important – aspects such as BYDV evaluation and ramularia tolerance, as well as early drilling and variety performance without plant protection.
The tillage sector has always been good at utilising such information and taking on board research findings. This week sees the biennial open day at Teagasc’s crop research centre at Oak Park. This is a tremendous showcase for modern crop research and what is on show is the envy of many other countries, even in the EU. But while we recall that we are producers of very high yields in a global context, this comes at a cost which must always be contained within an optimum spend. This is where the very valuable work undertaken by Teagasc researchers and delivered by Teagasc advisers comes to the fore.
That said, last week’s ifac report found very favourable income levels for the top performers in the sector who are obviously making very respectable incomes on modest land rental cost. The tillage sector is far from irrelevant to modern Irish agriculture. As well as being a critical provider of raw materials to the feed, livestock, malting, brewing and distilling industries, it also provides the raw materials for our porridge, food oil and other foods, plus much of our potatoes, fruit and veg.
This sector has an important part to play in the balancing of Irish agriculture and land use in terms of climate change pressures and other environmental issues. It is very low on greenhouse gas emissions and generally good on other environmental concerns. It is also far more regulated than other sectors in this regard.
The sector represents significant economic turnover in local communities. It has considerable need for machinery, repairs, builders, transport, tyres, fuel, etc, as well as its standard inputs such as fertiliser and plant protection products.
The sector is very important to rural Ireland as it represents a significant turnover on a hectare basis.
Moorepark open day: value of dairying on display
Our Focus supplement profiles next week’s Teagasc Moorepark dairy open day. Also this week, Ciaran Fitzgerald details the value of the dairy sector. The economic dividend from the growth in output extends far beyond the farm gate. The real measure of this is the level of expenditure in the national economy. While the headline figure of €200bn in exports is often used to showcase the importance of multinationals, the level of expenditure in the Irish economy was €20bn. Although the value of exports from our agri-food sector was considerably less, the level of expenditure is comparable at €15bn due to the heavy reliance on domestic inputs.
Wild Atlantic Way: Donegal’s untapped potential
Our Wild Atlantic Way of Farming series continues this week. Farmers in Donegal can face significant challenges with climate and land type, while local communities remain disadvantaged by issues such as access to broadband. Farmers and other stakeholders made clear to our team that there is untapped potential. This ranges from more output from under-grazed uplands to developing tourism. However, harnessing the true potential of Donegal will require significant financial assistance from Government. Policy-makers must ensure that the farmers and rural communities furthest from Dublin are not forgotten.
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