The outlook for Irish agriculture is bright as farmers and processors concentrate on the production of high-quality food. In the past year, there has been a 20 per cent growth in beef sales to EU countries. And the dairying sector is finding it difficult to meet demand, now that a market to China has opened up. Our mild climate, adequate rainfall and grass-fed system, should ensure that Ireland will continue to enjoy a production advantage over our EU competitors for the foreseeable future.
The change in sentiment has been dramatic. A year ago, some dairy farmers disposed of their herds. And there was gloom in the industry. A switch of cereals into bio-fuel production in the United States, however, caused a surge in grain prices and that spilled over into higher world prices for dairying and cattle production. Now, Bord Bia is predicting the Irish food and drink market will grow by at least 40 per cent and that the value of exports may double to €16 billion by 2020.
It is not wall-to-wall good news for farmers. Time is running out for those traditionalists who fail to make a full return of their incomes to the Revenue Commissioners. From the end of next year, details of individual farm payments amounting to about €1.6 billion will be published as a matter of course in Brussels. There will be no more "cheques in the post". And EU payments by the Department of Agriculture will have to be made by electronic transfer. Such transparency is likely to cause discomfort. Last year, out of 170 high-profile financial settlements with the Revenue Commissioners, 35 were registered against farmers.
In the past decade, the emphasis has shifted from quotas and maximising output to food safety, animal welfare and quality production. There has been heavy investment in development, particularly in relation to health-enhancing food products. Added-value dairy lines have replaced crude intervention mechanisms. And the EU Commission is moving from a CAP system favouring market supports to one of rural development aid.
As the construction industry falters and sheds jobs in rural Ireland, such a move is timely. There is an urgent need for investment in agri-tourism and in alternative employment. The majority of an estimated 240,000 farmers are now part-time and many of their sons work in the vulnerable house-building sector. They and their families depend on off-farm employment to sustain an agreeable lifestyle. And while specialisation, organic production and the supply of premium quality beef may raise part-time farm incomes, other employment outlets will be needed to ensure balanced regional development.