State needs to exploit 'green' image

Comment/Brody Sweeney: Until relatively recently, the Republic was an agriculturally based economy, with the majority of people employed and living on the land. Our recent Celtic Tiger has transformed the country into one of the wealthiest in Europe, with almost full employment.

However, this is almost entirely based on exports created by foreign multinationals based overseas. While we should take nothing away from this, as it has been largely responsible for the State's economic miracle, we should realise that the growth of exports from indigenous industry has barely kept pace with inflation and that our over dependence on exports, created in the main by foreign based companies that have branches in Ireland, is not a good long-term development strategy.

This unhealthy bias towards foreign direct investment (FDI) means Ireland is over sensitive to global economic changes. For example, the recent mini recession in the US had an immediate and dramatic effect on the Republic's economic performance.

I believe Ireland should have a fresh look at its economic development strategy - especially its twin-track approach to enterprise development.

On one hand, we want to keep the high levels of FDI and consequent highly paid jobs and exports, but we should be putting a renewed emphasis on the extra development of our indigenous enterprise base. In this way, a more equal footing for our economic success can be developed and sustained.

The recent Enterprise Strategy Group report Ahead of the Curve (which I took a part in), prepared for the Tánaiste, Ms Harney, made a number of excellent recommendations around, among other things, the development of internationally traded services out of the State. It concentrated on a strategy of creating indigenous exporters, encouraging Irish industry to beef up its R&D capability, as well as its sales and marketing capabilities.

There is, however, a further opportunity to develop a strategy around three of the State's natural industries - agriculture, tourism and food manufacturing.

All over the developed World (especially in Europe), consumers are becoming ever more health conscious. They want to eat food they think is good for them, such as organically grown meat and vegetables (not tainted by mad cow disease or antibiotics in chicken etc.), and that is ethically prepared (not battery farmed), such as the Fair Trade scheme for coffee.

The Republic - with its "green" image, low population density, on the edge of one of the richest markets in the world - is ideally placed to serve much of this business.

Yet Irish agriculture is missing out on this exciting opportunity. The basic problem stems from Ireland trying to grow commodity products - which need large acreage to be farmed economically - on relatively small farms, in a high-wage environment.

The European Common Agricultural Policy sustains a non-viable European agricultural model that compensates farmers for over producing, while keeping Third World countries in penury.

At the same time, everyone agrees it would be a good thing to keep people living in the countryside, keeping rural communities alive and providing a balance to the urbanisation of the big cities. Ireland, as one of the least densely populated European countries, is also a popular tourist destination for wealthy Europeans seeking a non-sun holiday.

I am suggesting a new strategy to take the Republic away from its traditional commodity-based agriculture to a new model based on smaller-scale specialised farming. The farm produce would be processed in the Republic and sold into other European countries under a premium quality brand, which would be created. This sustainable agricultural model would preserve the best elements of our environment and landscape, further enhancing the tourism potential of the country as the green healthy oasis of Europe.

Some of the features of this model might be:

Agriculture & Enterprise

Farmers should be encouraged to move away from traditional dairying, cereal, vegetable and livestock into the same business but under organic/ free range/ethically farmed labels.

A new Kerrygold-style brand should ensure that a relatively higher price can be achieved than non-branded foods that are organic/free range/ethically farmed.

Micro producers (small farmers) co-op together to achieve scale.

The higher price would compensate farmers for lower yields and more expensive farming methods.

Capable farmers would be encouraged to open B&B's in their homes, offering farming holidays.

Grant aid is provided to assist farmers make the transition.

Tourism

Ireland marketed as an upmarket short-break destination to wealthy European countries and as a natural, eco-friendly, traditional idyll away from the over urbanisation, intensification of European life.

"Family farming holidays" would be created and marketed to stressed out but wealthy European families.

Indigenous Business Development

Irish food companies process this food, so that the added value is kept in the State.

An Irish food brand would be created which would: market Irish food as raw ingredients into wealthy European countries; promote Irish food as safe/organic/free range/ethically farmed; promote Irish food as the premium quality food brand for Europe (such as the Netherlands for Flowers, Scotland for whisky, France for wine); and be reassuringly expensive.

The independent development of Ireland's natural indigenous industries alongside our successful FDI, could smooth out global bumps, meaning the lows won't be as low and the highs not quite as high.

The Republic could have more ownership of its economic welfare, rather than being dependent on external economic success. The Government needs to incentivise micro Irish businesses to group together and compete globally by providing a framework and leadership that could make it happen.

Brody Sweeney is chief executive and founder of O'Briens Irish Sandwich Bars