Paul Mooney: What was your most significant policy achievement?

Joe Walsh: When I was appointed to the cabinet, one of the first decisions I took was to establish Bord Bia. I believe that was the most important policy change I made in my time. It led to a complete culture change from producing commodities at farm level and asking the taxpayer to dispose of it. The bulk of our beef went into storage and had to be released back on the market, depressing prices.

So I'm very pleased now that Bord Bia has been a tremendous success. We have developed quite a sophisticated industry. We've gone from commodity production to where quite a substantial proportion of our output is to consumer markets. Consumer foods now turnover €3 billion per annum, it's a star performer.

PM: What is the outlook ahead on beef?

JW: There's a very good outlook ahead for beef. We've graduated from being the heaviest users of Intervention to using none. Now, 85% of our beef finds its way onto the EU markets, only 15% goes to third countries. That can improve further and we can go higher up the value chain, that is from catering to consumer cuts.

PM: How will that be done?

JW: Government will lead it. My successor will have a challenge leading on that. Industry needs directional leadership. I believe this office gave leadership over recent years. We now have a very positive image of Ireland the Food Island. That wasn't there a decade ago. That will help us get closer to the consumer.

PM: Was decoupling the correct decision?

JW: It was. We did a lot of soul searching. We asked farmers what did they want to go for and the overwhelming majority opted for full decoupling. I believe it was the right decision.

It protects direct payments, it gives farmers the freedom to farm for the final consumer.

PM: But also not to farm?

JW: We have to rely on scientific advice. Teagasc, through FAPRI, indicated that while there will be a decline livestock numbers it will not be too significant, about 15%. While there will be a decrease in prices initially after that prices will rise.

Most other counties have gone for some form of decoupling so there will be a decrease throughout the EU. There should be a degree of firmness in the markets in the future.

I'd like to see an emphasis on the industry producing for the market place, greater development of producer groups such as the KK Club. If people want tomatoes then it's a bad idea to give them lettuce.

PM: Has the EU abandoned price support?

JW: The EU has taken the significant decision to pay a single farm payment to farmers and to indicate to farmers that their margins depend thereafter on the market place. We have security until 2013, with a review a couple of years before that.

PM: Can single farm payments be increased for inflation?

JW: The one downside is that there is no provision for an increase for inflation. That's not in the culture of the EU. It prefers to give a substantial payment and to leave it in place rather than giving a small one that's annually increased. I don't necessarily agree with it but there's no likelihood of change.

PM: What level of protection can we get for beef or milk under WTO?

JW: The strategy of reforming the CAP ahead of the WTO deal worked very well. Now we have got a concession allowing us to designate a number of sensitive products for protection.

Tariffs and quotas will give the protection. I can't predict ahead as to their level - that's a matter for negotiation.

PM: Did you fail on farm incomes - they lag other sectors?

JW: Farming is a private enterprise operation. The most recent farm income survey showed that full time farmers' income rose last year by 5% and stood at €29,000 per annum.

Farmers have a tough life. They have to be extremely competitive and keep costs out. The margins are tight and getting tighter so scale has to increase.

It's a decoy to expect the Minister of the day to operate a controlled economy. That failed elsewhere. What farmers need is support in terms of farm improvements, marketing, promotion, support in EU negotiations. The bulk of support for farming comes from the EU. It costs €100 billion per annum to run the EU and almost half of this goes to farming. That's very strong support for one primary industry.

But I think it's right and proper. Society is making serious demands on farmers, everything from the nitrates directive, countryside access, animal welfare. There are costs there and farmers are entitled to be remunerated.

PM: What are the key challenges ahead for farmers and processors?

JW: The greatest challenge for producers is to produce for the consumer and to comply with societal demands on environment, safety, etc.

There is a hell of a challenge for processors on R and D. Farmers and industry have to address that. We're dead if we don't have in-house R and D, as well as in Teagasc and the universities.

PM: Where will the new EU Farm Commissioner, Mariann Fischer Boel, steer us?

JW: Her record in Denmark as farm minister was as a liberal on a range of matters, particularly on animal welfare, the environment, trade and protection policies.

PM: How will Ireland fare with her?

JW: She was opposed to any continuation of any animal transport, overland or by sea, when that issue was most recently being dealt with. That's a critical matter for Ireland. She is on the liberal wing in relation to the WTO. She is not a supporter of green box protection or of protection for sensitive products and EU markets.

PM: What is the likely outcome of the sugar reforms?

JW: It's worrying. As they stand the proposals would wipe out our industry. Both producers and factories would go. It's inevitable that there will be some reform but the worst aspects will be ameliorated. The new minister will have to get into the trenches and ensure that we have an industry going into the future. When the proposals on CAP reform emerged they were very damaging but we did a good job watering them down. I look forward to similar substantial change on the sugar beet proposals.