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It’s been an eventful 12 months across a number of fronts for the Irish agricultural sector.
Naturally, Brexit dominated the discussion on this island as the UK began to negotiate its exit from the EU.
Given the recent political uncertainty in the UK, particularly around the divisions between Brexiteers within the Conservative Party, perhaps the most insightful analysis on Brexit this year came from Michael Heseltine, the former deputy leader of the Conservative party.
Speaking after the UK election results became clear, where Theresa May lost much of her grip on power following a snap election and widened divisions within her own party, Heseltine described Brexit as the “cancer which has gnawed at the heart of the Tories” since the UK first joined the EU in 1973.
Of all the sectors in Irish agriculture, the dairy industry has the least exposure to the UK market. However, Dairygold co-op chief executive Jim Woulfe was blunt when he highlighted the exposure of Ireland’s cheese industry to the UK.
“Having 18% of Ireland’s national milk pool dedicated to one product (cheddar) dependent on one market (the UK) is high risk,” said the Dairygold boss.
While Irish cheese may be at risk of Brexit, our butter exports never enjoyed a better year with prices rising to record levels in 2017.
As Arla chief executive Peder Tuborgh pointed out, “for the first time ever, fat is more valuable than protein”.
One man who was not impressed with Ireland’s dairy processing industry was dairy farmer and former FrieslandCampina director Harm Holman. Speaking at the Irish Farmers Journal Dairy Day in Punchestown in November, Holman said Ireland needed to restructure its processing industry to be successful.
“If Ireland really wants to be competitive in world dairy markets it needs to restructure its industry. Processors are far too small today,” said the Dutch dairy farmer.
Ireland’s beef industry has long awaited the opening of the Chinese market to exports in the hope it could take significant volumes. However, Irish beef processors will need to be prepared for stiff competition from the US.
Philip Seng, the chief executive of the US Meat Export Federation, said his members will be prepared to fight to maintain market share in the massive Chinese market.
“Our competitors will quickly fill the void if we do not defend our market share in China,” he said.
Another major player in the global beef industry, McDonald’s, also highlighted its incredible route to market for any supplier companies.
McDonald’s chief executive Steve Easterbrook revealed an incredible stat to investors this year when he said nearly 75% of the population in McDonald’s top five markets (US, France, the UK, Germany and Canada) live within three miles of a McDonald’s restaurant.
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