The agri-food sector continues to play an integral part in Ireland’s economic recovery and is our largest indigenous industry, contributing €26bn in turnover and generating 12.3% of merchandise exports. The sector accounts for around 170,000 jobs, or 9% of total employment, and makes a particularly significant contribution to employment in rural areas. Food and beverage exports increased to a record value of €10bn in 2013, representing an increase of 9% on the previous year, and have continued to perform strongly this year.
Food Harvest 2020 set out a strategy for smart, green growth, mapping the future direction of the sector. Progress measured to date indicates that the value of primary output has increased significantly and has effectively reached its target of a 33% increase. Export performance has also been strong and at the end of 2013 was more than half way towards achieving the 2020 target of €12bn. Value-added has increased to €7.5bn, again more than half way to its target increase of €2.5bn.
Continuing export growth
Milestones for Success 2014 reports on progress to date through increasing export reach in global markets (see Table 1) and illustrates how the focused inter-agency approach, reaching out to strategic markets and building valuable networks and contacts in these countries is reaping dividends.
I have recently returned from a very successful agri-food trade mission to China. The opportunities presented by this market are huge. China is now our third-largest export market, after the European Union countries and the USA, and agri-food exports to China have trebled in the past three years. Significant export capacity is also being established in the Middle East.
The one clear message I got from the Chinese authorities, companies and buyers on that visit is that they know and trust food originating from Ireland. They see it as being produced to the highest standards when it comes to food safety, quality and sustainability.
It is important that we build on the momentum from these missions and remain focused on the huge prize, which is access to the Chinese market for all our agri-food services and products. For my part, I will maintain collaboration with my Chinese counterparts and further develop the Ireland-China agri-food partnership.
Export growth has been assisted by a series of ministerial-led trade missions. Industry leaders, with assistance from state enterprise agencies, have made strategic capital and capability investments in growth areas such as dairy, whiskey and processed foods.
2025 agri-food strategy
I recently launched the 2025 agri-food strategy process. The strategy will be developed by a committee chaired by John Moloney and consists of the leading figures from the agri-food sector. The strategy will set out the key actions required to maximise the contribution of the sector to economic growth, job creation and environmental sustainability over the next decade. The final report of the committee on the strategy will be presented in July next year.
Now is an opportune time to look to the future and to consider what the agri-food industry can achieve over the next decade to 2025. We are entering a period of profound change and it is vital that the optimum strategy is identified to meet the challenges ahead and embrace this major opportunity for growth and expansion.
The strategic review will be an inclusive process and an open public consultation has commenced. Detailed background papers have been prepared and are available on the Department website at www.agriculture.gov.ie/2025strategy, along with a questionnaire designed to assist in guiding feedback. I invite people to participate in this consultation process and to set out their views in relation to the future of the Irish agri-food sector. Completed questionnaires should be emailed to 2025strategy@agriculture.gov.ie. The closing date for submissions is Friday 9 January 2015.
Sectoral strategies for the dairy, beef, sheepmeat and pigmeat sectors, and for the development of the value-added sector, will be shaped by a range of factors. These include a recognition of the opportunities presented by expanding global population and demand and the abolition of milk quotas.
But there is also the need to improve profitability at farm level, including technology adoption and improved genetics. We also need to encourage product and process innovation, to find new markets and to improve the environmental and economic sustainability of our sector. Managing price volatility will also be a key requirement for all of the sectors.
An environmental analysis of the 2025 agri-food strategy (incorporating an appropriate assessment and a strategic environment assessment) was also announced. Details are available on www.etenders.gov.ie. The closing date for tenders is midday on Friday 9 January 2015.
Rural Development Programme
The Rural Development Programme (RDP) will be a key support in enhancing the competitiveness of the agri-food sector, achieving more sustainable management of natural resources and ensuring a more balanced development of rural areas. Ireland’s draft RDP was submitted to the EU Commission in early July.
The proposed measures for inclusion in the draft RDP were designed on the basis of extensive preparatory analyses and extensive stakeholder consultation over a period of 18 months. The draft RDP includes:
A substantial new agri-environment scheme (GLAS) and a number of other targeted environmental measures.Continued strong support for Areas of Natural Constraint (formerly Disadvantaged Areas). Significant support for on-farm capital investment.A range of knowledge transfer measures.Support for collaborative farming.Targeted support for the beef sector via the innovative Beef Data and Genomics Programme.LEADER (delivered by DECLG).In total, some €4bn of EU and national funding has been allocated to the new RDP, which is a clear statement of the Government’s commitment to continued investment in rural Ireland.
Forestry Programme 2020
The new programme for forestry will involve total expenditure of €262m over 11 separate schemes. This, in turn, will generate downstream commitments of a further €220m, mostly relating to future premium payments. The aim will be to plant 43,000ha of new forests and build 690km of forest roads. This investment will underpin the continued expansion of the forestry sector, which in 2012 contributed €2.3bn to GDP and employed 12,000 people.
In addition to meeting the growing demand for roundwood, the programme also addresses the need to maximise the environmental and social benefits that can be delivered by forestry. A native woodland and neighbourhood scheme will deliver ecosystems rich in animal, plant and insect life. This can also be enjoyed by society and used to generate additional revenues from recreation and tourism.
Forestry will continue to make an important contribution to climate change mitigation through carbon sequestration and fossil fuel replacement.
While grants and premiums will continue to be an important form of support for the new programme, the Department recognises the need to develop other opportunities that exist for institutional investment. Funding provided to finance projects by way of investment (whether public or private), instead of grants, which can pay back the whole or part of the original resources invested over time, can result in the availability of revolving resources for successive cycles of investment.
Therefore, in line with the vision for Irish forestry as set out in the policy review document (2014), the Department has commenced working closely with NewERA to explore institutional and private investment opportunities for afforestation, including work on existing forests, such as thinning, tending and roading.
While this work is at an early stage, the intention is that during the course of the new programme other vehicles for funding afforestation would be developed that would complement continued strong State funding in the industry.
Agri-taxation review
Last year, as part of Budget 2015, the Government announced the agri-taxation review. This was a joint initiative with my colleague, Minister for Finance Michael Noonan TD. The primary agriculture sector, with an estimated output of €7.25bn in 2013, provides the raw materials that underpin the Irish food and beverage industry. The review provides a strong evidence base for continued assistance to the primary sector through taxation measures and a clear strategy with specific policy objectives for the future.
The review provides a strategic framework for taxation policy for the sector for years to come. The agri-taxation working group will continue to monitor the agri-taxation measures and will examine additional issues identified by the review.
The immediate implementation of the majority of the report’s recommendations represents the most comprehensive agri-taxation package ever introduced. The new agri-taxation regime will assist in achieving a more efficient and productive sector, allowing it to meet future challenges and opportunities.
Challenges
The recent rises in food prices, throughout the world, have brought increasing focus on the importance of global food security and the need to ensure a sustainable food supply for all consumers. Bad weather conditions, including drought, the effects of the increasing oil price and fundamental long-term changes in the world’s demand for food, particularly in developing countries, have put increasing pressure on world food supplies.
These events have shown that food security should not be taken for granted. Ireland has to consider the role of its own agri-food sector in ensuring international food security, so that it can play its part in ensuring a high standard of quality food for future global food security.
Through our capacity in research and knowledge transfer, our involvement in key international organisations and our overseas aid programme, Ireland can play an important role in responding to the growing challenge of sustainably feeding an increasing global population.
There are opportunities and challenges ahead for the Irish agri-food sector. The high standing of the sector and the quality of its products and services are recognised both domestically and internationally. Working together, I believe we can deliver on the potential of this great sector as we face into the development of a new strategic framework for 2025.
The agri-food sector continues to play an integral part in Ireland’s economic recovery and is our largest indigenous industry, contributing €26bn in turnover and generating 12.3% of merchandise exports. The sector accounts for around 170,000 jobs, or 9% of total employment, and makes a particularly significant contribution to employment in rural areas. Food and beverage exports increased to a record value of €10bn in 2013, representing an increase of 9% on the previous year, and have continued to perform strongly this year.
Food Harvest 2020 set out a strategy for smart, green growth, mapping the future direction of the sector. Progress measured to date indicates that the value of primary output has increased significantly and has effectively reached its target of a 33% increase. Export performance has also been strong and at the end of 2013 was more than half way towards achieving the 2020 target of €12bn. Value-added has increased to €7.5bn, again more than half way to its target increase of €2.5bn.
Continuing export growth
Milestones for Success 2014 reports on progress to date through increasing export reach in global markets (see Table 1) and illustrates how the focused inter-agency approach, reaching out to strategic markets and building valuable networks and contacts in these countries is reaping dividends.
I have recently returned from a very successful agri-food trade mission to China. The opportunities presented by this market are huge. China is now our third-largest export market, after the European Union countries and the USA, and agri-food exports to China have trebled in the past three years. Significant export capacity is also being established in the Middle East.
The one clear message I got from the Chinese authorities, companies and buyers on that visit is that they know and trust food originating from Ireland. They see it as being produced to the highest standards when it comes to food safety, quality and sustainability.
It is important that we build on the momentum from these missions and remain focused on the huge prize, which is access to the Chinese market for all our agri-food services and products. For my part, I will maintain collaboration with my Chinese counterparts and further develop the Ireland-China agri-food partnership.
Export growth has been assisted by a series of ministerial-led trade missions. Industry leaders, with assistance from state enterprise agencies, have made strategic capital and capability investments in growth areas such as dairy, whiskey and processed foods.
2025 agri-food strategy
I recently launched the 2025 agri-food strategy process. The strategy will be developed by a committee chaired by John Moloney and consists of the leading figures from the agri-food sector. The strategy will set out the key actions required to maximise the contribution of the sector to economic growth, job creation and environmental sustainability over the next decade. The final report of the committee on the strategy will be presented in July next year.
Now is an opportune time to look to the future and to consider what the agri-food industry can achieve over the next decade to 2025. We are entering a period of profound change and it is vital that the optimum strategy is identified to meet the challenges ahead and embrace this major opportunity for growth and expansion.
The strategic review will be an inclusive process and an open public consultation has commenced. Detailed background papers have been prepared and are available on the Department website at www.agriculture.gov.ie/2025strategy, along with a questionnaire designed to assist in guiding feedback. I invite people to participate in this consultation process and to set out their views in relation to the future of the Irish agri-food sector. Completed questionnaires should be emailed to 2025strategy@agriculture.gov.ie. The closing date for submissions is Friday 9 January 2015.
Sectoral strategies for the dairy, beef, sheepmeat and pigmeat sectors, and for the development of the value-added sector, will be shaped by a range of factors. These include a recognition of the opportunities presented by expanding global population and demand and the abolition of milk quotas.
But there is also the need to improve profitability at farm level, including technology adoption and improved genetics. We also need to encourage product and process innovation, to find new markets and to improve the environmental and economic sustainability of our sector. Managing price volatility will also be a key requirement for all of the sectors.
An environmental analysis of the 2025 agri-food strategy (incorporating an appropriate assessment and a strategic environment assessment) was also announced. Details are available on www.etenders.gov.ie. The closing date for tenders is midday on Friday 9 January 2015.
Rural Development Programme
The Rural Development Programme (RDP) will be a key support in enhancing the competitiveness of the agri-food sector, achieving more sustainable management of natural resources and ensuring a more balanced development of rural areas. Ireland’s draft RDP was submitted to the EU Commission in early July.
The proposed measures for inclusion in the draft RDP were designed on the basis of extensive preparatory analyses and extensive stakeholder consultation over a period of 18 months. The draft RDP includes:
A substantial new agri-environment scheme (GLAS) and a number of other targeted environmental measures.Continued strong support for Areas of Natural Constraint (formerly Disadvantaged Areas). Significant support for on-farm capital investment.A range of knowledge transfer measures.Support for collaborative farming.Targeted support for the beef sector via the innovative Beef Data and Genomics Programme.LEADER (delivered by DECLG).In total, some €4bn of EU and national funding has been allocated to the new RDP, which is a clear statement of the Government’s commitment to continued investment in rural Ireland.
Forestry Programme 2020
The new programme for forestry will involve total expenditure of €262m over 11 separate schemes. This, in turn, will generate downstream commitments of a further €220m, mostly relating to future premium payments. The aim will be to plant 43,000ha of new forests and build 690km of forest roads. This investment will underpin the continued expansion of the forestry sector, which in 2012 contributed €2.3bn to GDP and employed 12,000 people.
In addition to meeting the growing demand for roundwood, the programme also addresses the need to maximise the environmental and social benefits that can be delivered by forestry. A native woodland and neighbourhood scheme will deliver ecosystems rich in animal, plant and insect life. This can also be enjoyed by society and used to generate additional revenues from recreation and tourism.
Forestry will continue to make an important contribution to climate change mitigation through carbon sequestration and fossil fuel replacement.
While grants and premiums will continue to be an important form of support for the new programme, the Department recognises the need to develop other opportunities that exist for institutional investment. Funding provided to finance projects by way of investment (whether public or private), instead of grants, which can pay back the whole or part of the original resources invested over time, can result in the availability of revolving resources for successive cycles of investment.
Therefore, in line with the vision for Irish forestry as set out in the policy review document (2014), the Department has commenced working closely with NewERA to explore institutional and private investment opportunities for afforestation, including work on existing forests, such as thinning, tending and roading.
While this work is at an early stage, the intention is that during the course of the new programme other vehicles for funding afforestation would be developed that would complement continued strong State funding in the industry.
Agri-taxation review
Last year, as part of Budget 2015, the Government announced the agri-taxation review. This was a joint initiative with my colleague, Minister for Finance Michael Noonan TD. The primary agriculture sector, with an estimated output of €7.25bn in 2013, provides the raw materials that underpin the Irish food and beverage industry. The review provides a strong evidence base for continued assistance to the primary sector through taxation measures and a clear strategy with specific policy objectives for the future.
The review provides a strategic framework for taxation policy for the sector for years to come. The agri-taxation working group will continue to monitor the agri-taxation measures and will examine additional issues identified by the review.
The immediate implementation of the majority of the report’s recommendations represents the most comprehensive agri-taxation package ever introduced. The new agri-taxation regime will assist in achieving a more efficient and productive sector, allowing it to meet future challenges and opportunities.
Challenges
The recent rises in food prices, throughout the world, have brought increasing focus on the importance of global food security and the need to ensure a sustainable food supply for all consumers. Bad weather conditions, including drought, the effects of the increasing oil price and fundamental long-term changes in the world’s demand for food, particularly in developing countries, have put increasing pressure on world food supplies.
These events have shown that food security should not be taken for granted. Ireland has to consider the role of its own agri-food sector in ensuring international food security, so that it can play its part in ensuring a high standard of quality food for future global food security.
Through our capacity in research and knowledge transfer, our involvement in key international organisations and our overseas aid programme, Ireland can play an important role in responding to the growing challenge of sustainably feeding an increasing global population.
There are opportunities and challenges ahead for the Irish agri-food sector. The high standing of the sector and the quality of its products and services are recognised both domestically and internationally. Working together, I believe we can deliver on the potential of this great sector as we face into the development of a new strategic framework for 2025.
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