The Beef Industry

That a potentially far-reaching shift in the European Union's Common Agricultural Policy (CAP) under the impact of the BSE crisis…

That a potentially far-reaching shift in the European Union's Common Agricultural Policy (CAP) under the impact of the BSE crisis is in prospect, is confirmed in an interview today with the commissioner responsible for food safety, Mr David Byrne. He tells this newspaper's readers that consumer concerns about food quality, methods of production and processing of food have become mainstream issues, to which EU policies will have to adapt. He is to cooperate with the agricultural commissioner, Mr Franz Fischler, in an investigation of how the CAP should be adjusted along these lines. Quality rather than quantity seems certain to be rewarded by any such changes, with important implications for the farm sector in Ireland.

This week saw a significant shift of policy in Germany, which could presage wider changes elsewhere. Following the resignation of the agricultural and health ministers over their mishandling of the BSE issue, the chancellor, Mr Gerhard Shroeder, has signalled a radical reorientation towards less intensive methods of animal rearing and a new preference for organic farming. A new ministry responsible for consumer protection as well as agriculture has been created, and a prominent member of the Green Party given responsibility. This has infuriated established farm lobbies; but it seems to be in line with changing popular attitudes in Germany and a much greater willingness to pay more if necessary for quality produce.

While Germany does not determine EU farm policy, it is as well that the sector takes full account of changing trends there following traumatic and incompetent regulation of the BSE issue. Beef consumption has fallen by an average 26 per cent in EU markets. If consumer confidence is to be regained, drastic action - such as the testing and destruction policy now agreed - will be necessary to restore it. That this is a rough and ready approach is rapidly becoming apparent to farmers and consumers alike, as the mass culling of cattle gets under way. However it works out in practice, there can be no return to the old policies of subsidising the producer irrespective of the effects on consumers and food quality.

Ireland's beef industry will be deeply affected by these potential changes. Intervention is being actively discouraged by Brussels, putting a premium on better quality output capable of selling in EU markets - and on finding external markets where export subsidies apply. Unfortunately, the sector has traditionally preferred quantity to quality, despite the marvellous natural advantage conferred by Ireland's abundant grasslands. That advantage will increase if intensive methods are discouraged by Brussels; but it will be very much up to the sector, and its leaderships, to encourage an optimum Irish response to the new opportunities emerging.

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The best Irish producers have long demonstrated their ability to sell quality produce on European and world markets. This week's events indicate that such excellence will have to become far more widespread in coming years if Ireland's agriculture is to survive and prosper in a much more discerning and consumer-dominated environment.