The ongoing tit for tat on trade deals – triggered by the US placing tariffs on imports of steel and aluminium last week – could spell danger and higher costs for goods imported from the US into the EU. At the very least, they clearly signal the fragility of global supply chains, particularly with food and energy.
In response, Mexico and Canada have imposed counter sanctions on a host of US exports, mainly agricultural, while European Commissioner for Trade Cecilia Malmström announced on Wednesday it would target €2.8bn of US exports to the EU with punitive tariffs.
While these trade wars may seem a long way removed from the average Irish farmer, the trickle-down effect of these disputes has real and significant impacts on farmgate prices.
The ultimate trade disruption is a complete ban on product entering a specific region. A recent example of this is the Russian ban on European dairy and pig products, which is ongoing despite Europe’s best efforts to resume trading. It is over four years since Russia decided against accepting European dairy imports. Milk prices and pig prices suffered following the loss.
Thankfully, on Monday this week, European Commissioner for Agriculture Phil Hogan ruled out the possibility of a Mercosur trade deal concluding this week. Trade talks on the controversial trade deal resumed in Uruguay, with rumours that the potential quota of beef on offer to the South American bloc could have increased to just under 100,000t.
Overall, trade deals are good. However, Mercosur is the exception in that it is unbalanced with unsustainable levels of beef access being discussed. This has been independently verified by the EU’s own cumulative impact assessment, not a protectionist view.
The Trump policy seems to revolve around the fact that the rest of the world needs the US more than the US needs them
Irish and French farmers have stood firm on their refusal to accept any offer that could create an import imbalance, which would have a negative effect on the price of European beef. Minister for Agriculture Michael Creed has lobbied against an agreement recently.
Mixing Mercosur discussions with ongoing trade wars again shows the high-risk strategy of the EU to sacrifice EU production in favour of imports from South America.
In the US, the Trump policy on trade seems to revolve around the fact that the rest of the world needs the US more than the US needs them, and the details around how this plays out don’t seem to matter. The US has yet to take direct action against China.
Taking all of this into account, it seems clear we are heading for choppier water on global trade.
The EU as a whole is only 66% self-sufficient in protein. With the US being the largest producer of protein globally, EU farmers would likely feel the effect of any disruption to global trade flows. What tends to happen in situations where grain prices are artificially altered due to tariffs is displacement.
China is the largest buyer of US soya beans, sourcing 100m tonnes annually. However, China has recently deployed an additional 350 people on the ground in Brazil in case it needs to find a new source of soya.
In a similar vein, Mexico’s retaliation against US agricultural exports is likely to lead to displacement that could play into Europe’s hands. In response to President Trump’s metal tariffs, Mexico hit back with a 20% tariff on US pork imports, apples and potatoes, and 20-25% tariff rates on types of cheeses and bourbon.
This could be extremely damaging for US farmers as Mexico is the largest export market for US pork ($1.3bn), corn (maize) ($2.6bn), and dairy ($1.2bn). Mexico imports more than 90,000t of US cheese as well as 250,000t of skimmed milk powder. With the EU close to finalising a free trade agreement with Mexico, could there be new opportunities for EU meat and dairy exporters to displace US agricultural products hit with fresh tariffs? Time will tell.
Either way, the bottom line from this week’s escalations is that high tariff rates and protectionism are not good for either side.
TB: compensation can’t make up for lost profits
Thomas Hubert details the heartache and scourge TB depopulation and restrictions are having on a farming neighbourhood in Waterford. Once again, it appears that the disturbance of soils as wind turbines are constructed and trees felled could have disturbed local wildlife (badgers and deer) and hence potentially spread the disease to livestock farms.
We have seen some evidence of this is the past as motorways have been constructed through the countryside. The damage to farmers’ income as livestock is depopulated is both heartbreaking and detrimental to the business as livestock are the income-generating units on these farms. Yes, compensation is available but experience shows it merely covers the extra costs and expenses associated with an outbreak, and of course there is no upside to make profits when livestock are gone.
Interestingly, while we seem to be ahead of the game compared to some countries in managing TB, the impact can still be significant on farm families. As Tommy Moyles reports, our aspirations to eradicate TB have been positive for the last 46 years but, as yet, we have not been successful. If one was to total up the TB management cost it goes some way to explain why New Zealand is aiming to eradicate Mycoplasma bovis from New Zealand herds while they still have a chance.
Tillage: cereal challenges in the spotlight
Our Focus supplement this week once again highlights a huge challenge for cereal farmers as they grapple with disease control in the future.
With fewer actives and de-listing of current actives, realistically there will be fewer key active products available.
Interestingly, breeding is seen as a solution and breeding for disease resistance combined with good technical management, such as good seed bed preparation, proper timing and the right nitrogen strategy, etc.
This highlights the importance of the work carried by the Department of Agriculture and local seed companies in selecting the right varieties.
While these management concerns are real, the Focus supplement also highlights positive examples, such as blight in potatoes and rhynco in barley, where the situation is much better than what was anticipated 10 years ago.
Bloom: food producers given chance to shine
It’s amazing how Bord Bia’s Bloom event has grown down through the years. From the start, it has been an excellent showcase for Irish food. The marquees hosting the various food companies show the considerable depth of what Ireland Inc can produce, in terms of quality and variety.
The Irish food companies displaying their wares, such as Rudd’s, Kerrigan’s, Grá and Glenillen, highlight the dedication of those involved in delivering and maintaining quality despite the many challenges faced by these fledgling Irish companies.
Credit must go to Bord Bia for making this happen. It is such a positive story for rural Ireland showcased to all in Dublin and the many thousands of foreign visitors.
Newford Farm: tough year shows challenges in beef
The results presented this week confirm the trend of poor profitability for the steer and heifer finishing suckler trial underway at Newford Farm, near Athenry, Co Galway.
The numbers detailed do not cover the farm manager’s wage or the land rental costs.
Farmers cannot be expected to work for nothing with no return on assets employed to produce excellent technical performance and quality product.
While 2017 might have been a difficult year on weather, the details displayed go a long way to showing why we drove the Save Our Sucklers campaign backed by suckler farmers from all around the country.
Read more
Tesco UK drops Kerrygold spreadable
Knowledge transfer programme deadline on the horizon
Protecting your private well
The ongoing tit for tat on trade deals – triggered by the US placing tariffs on imports of steel and aluminium last week – could spell danger and higher costs for goods imported from the US into the EU. At the very least, they clearly signal the fragility of global supply chains, particularly with food and energy.
In response, Mexico and Canada have imposed counter sanctions on a host of US exports, mainly agricultural, while European Commissioner for Trade Cecilia Malmström announced on Wednesday it would target €2.8bn of US exports to the EU with punitive tariffs.
While these trade wars may seem a long way removed from the average Irish farmer, the trickle-down effect of these disputes has real and significant impacts on farmgate prices.
The ultimate trade disruption is a complete ban on product entering a specific region. A recent example of this is the Russian ban on European dairy and pig products, which is ongoing despite Europe’s best efforts to resume trading. It is over four years since Russia decided against accepting European dairy imports. Milk prices and pig prices suffered following the loss.
Thankfully, on Monday this week, European Commissioner for Agriculture Phil Hogan ruled out the possibility of a Mercosur trade deal concluding this week. Trade talks on the controversial trade deal resumed in Uruguay, with rumours that the potential quota of beef on offer to the South American bloc could have increased to just under 100,000t.
Overall, trade deals are good. However, Mercosur is the exception in that it is unbalanced with unsustainable levels of beef access being discussed. This has been independently verified by the EU’s own cumulative impact assessment, not a protectionist view.
The Trump policy seems to revolve around the fact that the rest of the world needs the US more than the US needs them
Irish and French farmers have stood firm on their refusal to accept any offer that could create an import imbalance, which would have a negative effect on the price of European beef. Minister for Agriculture Michael Creed has lobbied against an agreement recently.
Mixing Mercosur discussions with ongoing trade wars again shows the high-risk strategy of the EU to sacrifice EU production in favour of imports from South America.
In the US, the Trump policy on trade seems to revolve around the fact that the rest of the world needs the US more than the US needs them, and the details around how this plays out don’t seem to matter. The US has yet to take direct action against China.
Taking all of this into account, it seems clear we are heading for choppier water on global trade.
The EU as a whole is only 66% self-sufficient in protein. With the US being the largest producer of protein globally, EU farmers would likely feel the effect of any disruption to global trade flows. What tends to happen in situations where grain prices are artificially altered due to tariffs is displacement.
China is the largest buyer of US soya beans, sourcing 100m tonnes annually. However, China has recently deployed an additional 350 people on the ground in Brazil in case it needs to find a new source of soya.
In a similar vein, Mexico’s retaliation against US agricultural exports is likely to lead to displacement that could play into Europe’s hands. In response to President Trump’s metal tariffs, Mexico hit back with a 20% tariff on US pork imports, apples and potatoes, and 20-25% tariff rates on types of cheeses and bourbon.
This could be extremely damaging for US farmers as Mexico is the largest export market for US pork ($1.3bn), corn (maize) ($2.6bn), and dairy ($1.2bn). Mexico imports more than 90,000t of US cheese as well as 250,000t of skimmed milk powder. With the EU close to finalising a free trade agreement with Mexico, could there be new opportunities for EU meat and dairy exporters to displace US agricultural products hit with fresh tariffs? Time will tell.
Either way, the bottom line from this week’s escalations is that high tariff rates and protectionism are not good for either side.
TB: compensation can’t make up for lost profits
Thomas Hubert details the heartache and scourge TB depopulation and restrictions are having on a farming neighbourhood in Waterford. Once again, it appears that the disturbance of soils as wind turbines are constructed and trees felled could have disturbed local wildlife (badgers and deer) and hence potentially spread the disease to livestock farms.
We have seen some evidence of this is the past as motorways have been constructed through the countryside. The damage to farmers’ income as livestock is depopulated is both heartbreaking and detrimental to the business as livestock are the income-generating units on these farms. Yes, compensation is available but experience shows it merely covers the extra costs and expenses associated with an outbreak, and of course there is no upside to make profits when livestock are gone.
Interestingly, while we seem to be ahead of the game compared to some countries in managing TB, the impact can still be significant on farm families. As Tommy Moyles reports, our aspirations to eradicate TB have been positive for the last 46 years but, as yet, we have not been successful. If one was to total up the TB management cost it goes some way to explain why New Zealand is aiming to eradicate Mycoplasma bovis from New Zealand herds while they still have a chance.
Tillage: cereal challenges in the spotlight
Our Focus supplement this week once again highlights a huge challenge for cereal farmers as they grapple with disease control in the future.
With fewer actives and de-listing of current actives, realistically there will be fewer key active products available.
Interestingly, breeding is seen as a solution and breeding for disease resistance combined with good technical management, such as good seed bed preparation, proper timing and the right nitrogen strategy, etc.
This highlights the importance of the work carried by the Department of Agriculture and local seed companies in selecting the right varieties.
While these management concerns are real, the Focus supplement also highlights positive examples, such as blight in potatoes and rhynco in barley, where the situation is much better than what was anticipated 10 years ago.
Bloom: food producers given chance to shine
It’s amazing how Bord Bia’s Bloom event has grown down through the years. From the start, it has been an excellent showcase for Irish food. The marquees hosting the various food companies show the considerable depth of what Ireland Inc can produce, in terms of quality and variety.
The Irish food companies displaying their wares, such as Rudd’s, Kerrigan’s, Grá and Glenillen, highlight the dedication of those involved in delivering and maintaining quality despite the many challenges faced by these fledgling Irish companies.
Credit must go to Bord Bia for making this happen. It is such a positive story for rural Ireland showcased to all in Dublin and the many thousands of foreign visitors.
Newford Farm: tough year shows challenges in beef
The results presented this week confirm the trend of poor profitability for the steer and heifer finishing suckler trial underway at Newford Farm, near Athenry, Co Galway.
The numbers detailed do not cover the farm manager’s wage or the land rental costs.
Farmers cannot be expected to work for nothing with no return on assets employed to produce excellent technical performance and quality product.
While 2017 might have been a difficult year on weather, the details displayed go a long way to showing why we drove the Save Our Sucklers campaign backed by suckler farmers from all around the country.
Read more
Tesco UK drops Kerrygold spreadable
Knowledge transfer programme deadline on the horizon
Protecting your private well
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