IBEC, the group that represents Irish businesses, has called for direct support for farmers through CAP market support for farmers in the event of further sterling depreciation as a result of Brexit.

In its brief for Minister for Agriculture Michael Creed, on Brexit, IBEC has called for an ambitious response to Brexit for the agri-food and agricultural sector.

It highlights that over the longer term, the entire basis of our trading relationship with the UK will be renegotiated.

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However, immediately, Ireland faces a currency shock that is structural rather than cyclical.

As well as calling for direct support for farmers through CAP market support, IBEC has said that the minister should ensure efficient and open markets domestically and internationally, through a range of options.

These include:

  • An ambitious and balanced agreement between the EU27 and the UK, to include a frictionless north-south border on the island of Ireland.
  • Clear transitional arrangements to support existing supply chains between the EU27 and the UK.
  • Exceptional state-aid support for stabilisation, competitiveness and diversification to remedy a serious disturbance in the Irish economy.
  • €25m in funding for market diversification and product innovation measures by Bord Bia and Enterprise Ireland.
  • Trade support measures including export trade financing and export credit guarantees to support the continued development of international export markets.

    • Sustainability

    In the wide-ranging brief, IBEC also called for the minister to support climate change policies that recognise the sustainable grass-based food production system in Ireland.

    Innovation

    Ensuring a strong focus on national research, skills development and apprenticeships in the agri-food sector is another aspect that IBEC believes the minister should focus on.

    With one in eight jobs in the economy linked to agri-food, IBEC believes that failure to deliver on its key priorities will be damaging to the wider economy and not just the food and drink industry.

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