The Irish sheep sector is not alone in the challenges it faces, with similar issues faced by most of the main sheep producing nations across the EU. It is this background that was one of the driving forces for the EU Sheep Meat Forum being so well supported by member states, with significant sheepmeat production, along with producer representatives, processors and traders of sheep meat in the EU.
Established by European Commissioner for Agriculture Phil Hogan in autumn 2015 and chaired by former IFA president John Bryan with assistance from Kevin Kinsella, IFA director of livestock, the report lists the forum’s aims as developing a “positive policy roadmap geared at capturing opportunity and sustaining the future for the EU sheep meat sector”.
To achieve this aim, members of the forum held four one-day workshops starting in November 2015 and concluding in October 2016. Discussions are described as centring on exploring “the EU’s sheep meat sector’s assets and opportunities, current and future challenges focusing on key areas such as production, competitiveness and marketing; as well as its economic, social and environmental sustainability”.
Challenges and opportunities
The report describes the EU sheep meat sector as “vulnerable or sensitive, facing a number of significant challenges including low incomes at farm level and weak financial sustainability, dependence on direct payments, declining consumption, low productivity and a higher average profile of both producers and processors”.
On the other hand, the report also raises a number of “positive opportunities for the sector including its position as a supplier of premium quality lamb products to an EU market that is only 87% self-sufficient, the positive role of sheep in enhancing the environment, managing natural resources and biodiversity, and delivering ecosystems, services and public goods to society”.
A snapshot of the
13 EU Sheep
Meat Forum
recommendations
The report, which can be viewed in full here, includes 13 key recommendations which are relevant across all member states. The first two are the key recommendations and include some more in-depth detail.
1
Strong CAP support and greening: The report states that, along with agricultural output, the sheep sector provides significant public goods which are not remunerated by the market. Economic analysis shows that each €1 of direct support for the sheep sector underpins €2.70 worth of output and €1.72 of household income. The forum recommends fully maintaining CAP and direct payments, with the option of voluntary coupled payments maintained and strengthened. At present, 22 member states operate voluntary coupled support totalling on average €12/ewe. In another very relevant topic for Ireland, the forum recommends the Commission and member states “working together and applying administrative discretion in allowing member states designate areas where extensive traditional sheep grazing is an established practice to remain eligible for direct payments”.
2
Prioritised and enhanced Rural Development measures: Ways should be considered that allow Rural Development (RD) measures to be targeted more directly at active sheep farmers. In addition, it highlights that as sheep farmers are predominately in Areas of Natural Constraint, payments under RDP measures should be prioritised and enhanced for sheep farmers. The last component in this section is to make all RDP options available to all sheep farmers.
3
New environmental payment: As sheep farming plays a critical role in “preserving sensitive ecosystems, landscape aesthetics, water quality, climate change, preventing erosion, floods, avalanches and forest fires and controlling undesirable accumulation of biomass”, the report wants the Commission to consider the possibility of a new environmental payment. This, it says, will help reverse the accelerating problem of declining sheep numbers and land abandonment through support measures for managing grassland through extensive livestock farming.
4
Young farmers: An aging profile of sheep farmers and difficulties in attracting new blood into the sector is presenting growing challenges. Increased support for new or existing young farmers, continuation of top-up payments and targeted measures under the RDP are all recommended, along with higher payments under all general RDP measures.
5
New sheep meat communication and promotional programme: In the last 15 years, sheep meat consumption has fallen by 40% from 3.6kg per capita in 1999 to 2.1kg in 2015. A new sheep meat communication and promotional campaign is seen as vital in positioning EU lamb as the automatic choice among EU consumers. Specific ring-fenced funding along with targeted communication and promotional activities across all relevant areas such as EU retail and food-service sectors, food and agri-media and direct engagement with consumers. The utilisation of an EU label reading “Enjoy, it’s from Europe” is advised on the widest range of EU-produced sheep meat.
6 Improved market transparency: This is something Irish farmers have long craved, particularly with margins squeezed between farmgate returns and rising input costs. The report highlights the need for viable income for producers with lamb prices that deliver a return above the costs of production. This could be delivered through the development of a dashboard for sheep meat similar to other meat sectors which improves price reporting and establishes a market price observatory to provide transparency (price and margins) across the entire supply chain.
7
Position in the food supply chain: To address a weak negotiation position in the food supply chain, a recommendation is given for the Commission to extend the provisions on contractual negotiations within the legal framework of Regulation (EU) No 1308/2013 to the sheep sector, remove unfair trading practices and create a fairer trading environment for suppliers, processors and primary producers.
8 Trade issues: The main trade issue highlighted is the sensitivity of the EU market towards imports due to a unique EU import regime which allows imported fresh and frozen lamb product, mainly from southern hemisphere countries to compete with domestic EU lamb at a time when their costs are lowest and EU costs tend to be highest.
Given its importance, this area has an extensive array of recommendations. These include not increasing preferential market access above current existing tariff rate quotas and the continued designation of sheep meat as a sensitive product in trade negotiations. Furthermore, it is recommended that “EU imports must meet standards equivalent to those required of EU producers across the key areas of animal health, consumer protection and the environment.” Recent developments in the EU have also been addressed, with the key position of the UK in the EU sheep sector highlighted and the huge impact of Brexit. It says “in this context, existing and historic trade flows should be fully re-examined and a trade policy solution found that best accommodates the need of the sector”.
Gaining access to new international markets is also highlighted as central to maximising overall sheep meat returns. In particular, the report is looking for the Commission to intensify efforts to lift SPS barriers which inhibit EU exports, support information campaigns in international markets, facilitate access for EU live sheep export to existing and new market opportunities, especially ethnic markets, and support market access efforts for fifth-quarter products.
9
Simplification and Cross Compliance: Recommended here is a close-out approach to inspections across cross-compliance, including sheep identification and registration. Member states are also encouraged to make use of flexibilities available in legislation for particular unintentional non-compliances, with the Commission considering a more proportionate and fairer approach regarding penalties and tolerances.
10
Sheep identification: Sheep identification was given its own section, given its relevance. The reports says the sheep sector acknowledges the need to have “functioning traceability” in place but the forum highlights “the persisting practical difficulties and cost burden at producer level with the implementation of electronic identification (EID). Three recommendations are made: simplifying requirements on movement documents and time periods for recording movements, use of batch traceability system where appropriate and continued availability and use of the derogation in respect of EID on lambs sent for slaughter.
11
Innovation: Incentives for research and development and knowledge transfer from primary producers to processors is endorsed. This should take place in particular at farm level with the aim of improving productivity, quality, breeding, preventative disease control, education, advice and technology, with improved breeding programmes between member states. Investments to modernise slaughtering and packing plants using the latest technology will ensure competitiveness, while research and development in product development and value-added will benefit the sector.
12
Sanitary issues: In regard to Specified Risk Materials (SRM), the advice is a reduction in SRM and TSE testing based on scientific opinions published by the EFSA. There is a recommendation for support of increased concentrated a nd uniform health management between member states, with particular emphasis on preventative strategies.
13
Natural predators: The increasing presence of natural predators is identified as posing a serious economic threat and permanent damage to sheep farmers. Member states are advised in the report to exhaust all available avenues to support preventative measures and compensate losses under state aid schemes. The possibility within the Habitats Directive 92/43/EEC is also to be explored to regulate populations of large carnivores in areas where they are threatening sheep farming.
What’s next?
The forum is encouraging the relevant parties to take on the recommendations and implement at EU and national level. These recommendations have been presented to Commissioner Hogan with the chair of the group John Bryan recommending that the European Council is informed of them also. Bryan will present the report to the EU Civil Dialogue Group on Sheep in Brussels on 16 November where he will propose the implementation of the recommendations be monitored by the group.
MII
In welcoming the report, Director of MII Cormac Healy said “We strongly urge the commissioner to move swiftly on targeting funding for the proposed new communication and promotion programme. “The future vibrancy of the EU sheep sector is dependent on creating a positive differentiation of domestic EU lamb as a premium offering preferred by EU consumers. The EU market is only 87% self-sufficient, however, the forum expressed the view that imports, while having a role in the market, have over the years have had a disproportionate impact on viable market returns to sustain domestic production. This needs to be tackled.”
IFA
IFA sheep committee chair John Lynskey said: “The recommendations of the forum provide a positive policy framework for an economically and environmentally sustainable sheep meat sector. The sheep sector delivers significantly, not only for farmers and rural Ireland, especially in mountain and hill areas where other types of farming are not an option, but also in terms of the delivery of public good to society. It is important now that the relevant people make the necessary changes to ensure the recommendations are acted upon and implemented.”
Bord Bia
“The recommendations of the EU Sheep Meat Forum will hopefully play an important role in influencing the Commission’s decision on future policy and development programmes for the sector,” said Declan Fennell of Bord Bia.
“A new sheep meat communication and promotional promotion should be a priority focus. As an industry, we need to be relentless in our efforts in securing promotional funding and build upon the work of EU co-funded campaigns such as Lamb – Tasty, Easy Fun.”
Read more
Editorial: Setting definitive targets for EU sheep sector