Ireland’s increasing dependence on grain and feed imports is outlined clearly in the recent economic impact report, written by Professor Michael Wallace. He indicates that increases in demand have outpaced native supplies. However, these trends also indicate significant opportunities for expansion through import replacement.
Increasing costs, imports, technology gaps – there are many things that have caused the area decline in the tillage sector, but ultimately it has been lack of profitability. Like all sectors, the pincer combination of increasing costs (production and compliance) and poor grain prices have eroded profitability and the ongoing pressure from lowering support payments and convergence continues to erode profitability.
There has been little to no encouragement for the youth to engage in any other enterprise
There have been a few good years, which served to build reserves and update machinery, but it can hardly be a surprise that some farmers that have children willing to milk cows have moved to dairy. There has been little to no encouragement for the youth to engage in any other enterprise. This in itself discourages the next generation to return to tillage.
The fact that many farmers are still willing to participate in enterprises that are less profitable than the best should be seen as a national asset rather than a failure
Our agricultural landscape needs all types of farming to protect our countryside, which also provides the backdrop for our tourist industry. What would the west look like without its drystock farming – would our mountains be as attractive without the constant manicuring provided by grazing sheep?
The fact that many farmers are still willing to participate in enterprises that are less profitable than the best should be seen as a national asset rather than a failure. But they cannot continue to do it as a loss-making enterprise. That is a major challenge for policy, which is finding new ways to help protect our countryside.
Cheap imports killing profitability
There can be little doubt that the biggest single blight on the tillage sector is cheap imports. Irish and European farmers are very controlled in terms of the inputs and technologies they can use, yet cheap products are imported as animal feed, with no consideration of origin or means of production.
But cheap is not a badge worn by the lowest-cost producer – it is a factor of currency value, a measure of a surplus that needs to be disposed of, an opportunity that cannot be passed up. It is not necessarily a measure of efficiency at producer level.
Even if it was, why are we forced to operate in this arena of double standards where our political masters prevent access to potentially useful technologies for the common good. Yet products originating from banned technologies and produced using inputs that have been prohibited here can be imported, almost without question. And quite a number of these ingredients are associated with the destruction of ecosystems elsewhere.
That is not to suggest that our tillage sector has no flaws
These problems are not unique to Ireland – they are issues for all growers in the EU. However, we have developed a disproportionate dependence on imports, which are now often seen as the norm rather than the top-up to native production.
That is not to suggest that our tillage sector has no flaws. We have developed a strong dependence on a range of pesticides. We also have a seriously challenging marketing system that relies on price being struck in the heat of the harvest.
Our attitude to selling does not facilitate forward buying and if a buyer wants to take forward cover, it can only be done on imported products. This will have to change, because the market buys most weeks of the year.
Imports increasing
Figure 1 shows the trend in net import levels of livestock feed ingredients from 2000 to 2018.
While 2018 was exceptional due to the shortage of fodder, the trend is upwards and is following feed usage. If this continues with the intention of leaving Irish grains in store, we are walking on very thin ice in terms of our ability to persuade others that what we export is Irish.
In his report, Professor Wallace points out that this increase in Ireland’s net imports of livestock feed materials increased at a linear rate of 113,000t per annum between 2000 and 2018, mainly towards the end of the period.
Cereal imports are not directly included in the feed ingredients mentioned previously and import levels of these products have also increased substantially, especially maize
Leaving aside the uniqueness of 2018, he pointed out that imports of key concentrate feed ingredients in 2017 amounted to almost 4m tonnes, with a trade value of around €800m. If all of this could be sourced in Ireland (and it cannot be currently), it would be worth an additional €1.6bn to the economy due to the multiplier effect. This should remain an objective for all in the sector.
Cereal imports are not directly included in the feed ingredients mentioned previously and import levels of these products have also increased substantially, especially maize. The report indicated a linear rate of increase of 64,000t per annum between 2000 and 2018. These cereal imports were 1.6m tonnes in 2017 and valued at €257m.
Maize is now by far the biggest cereal import, hitting 1.1m tonnes in 2017, with over 1.5m tonnes in 2018. The main origins of maize imports during 2014-2018 are shown in Figure 2.
While Ireland has long had a requirement for imported flour, to help meet the requirements of modern baking practices, it still used to have a supply line into the sector.
But this has gradually gone and the closure of all industrial flour mills brought our involvement to a relatively sudden end.
We do, in theory, still have one retail flour mill in Portarlington, but it stopped taking Irish wheat a few years ago. So, except for a handful of artisan millers and bakers, there is no Irish wheat being used for baking.
As a consequence, net imports of wheat flour have been increasing for years. The report states that these imports increased at a linear rate of 7,000t per annum between 2000 and 2018, reaching 210,000t (€80m) in 2018.
With healthier eating an increasing challenge for society, issues like this need a more holistic examination of the options, as the UK will shortly be gone as our main source of flour
While this could not be totally replaced by Irish-grown wheat, the time has come to ask if we can do more with the wheat we can grow to make bread products that are regarded as being healthier than the sliced pan. With healthier eating an increasing challenge for society, issues like this need a more holistic examination of the options, as the UK will shortly be gone as our main source of flour.
I also understand that there have been considerable advances in milling technology which, when combined with improved assembly practices for individual varieties, could widen the window of opportunity for Irish-grown wheat across a broad range of flour markets.
Cheaper imports from outside of the EU are now a huge driver of the erosion in profitability of native cereal production.While cereal production has declined somewhat due to the reduction in area and the move to non-cereal crops, the overall demand for feeds has increased disproportionately, following the expansion in dairying. Demand for wheat to make Irish flour is now virtually zero – this situation merits serious consideration with regard to the type of baking products we could make from Irish ingredients.
Ireland’s increasing dependence on grain and feed imports is outlined clearly in the recent economic impact report, written by Professor Michael Wallace. He indicates that increases in demand have outpaced native supplies. However, these trends also indicate significant opportunities for expansion through import replacement.
Increasing costs, imports, technology gaps – there are many things that have caused the area decline in the tillage sector, but ultimately it has been lack of profitability. Like all sectors, the pincer combination of increasing costs (production and compliance) and poor grain prices have eroded profitability and the ongoing pressure from lowering support payments and convergence continues to erode profitability.
There has been little to no encouragement for the youth to engage in any other enterprise
There have been a few good years, which served to build reserves and update machinery, but it can hardly be a surprise that some farmers that have children willing to milk cows have moved to dairy. There has been little to no encouragement for the youth to engage in any other enterprise. This in itself discourages the next generation to return to tillage.
The fact that many farmers are still willing to participate in enterprises that are less profitable than the best should be seen as a national asset rather than a failure
Our agricultural landscape needs all types of farming to protect our countryside, which also provides the backdrop for our tourist industry. What would the west look like without its drystock farming – would our mountains be as attractive without the constant manicuring provided by grazing sheep?
The fact that many farmers are still willing to participate in enterprises that are less profitable than the best should be seen as a national asset rather than a failure. But they cannot continue to do it as a loss-making enterprise. That is a major challenge for policy, which is finding new ways to help protect our countryside.
Cheap imports killing profitability
There can be little doubt that the biggest single blight on the tillage sector is cheap imports. Irish and European farmers are very controlled in terms of the inputs and technologies they can use, yet cheap products are imported as animal feed, with no consideration of origin or means of production.
But cheap is not a badge worn by the lowest-cost producer – it is a factor of currency value, a measure of a surplus that needs to be disposed of, an opportunity that cannot be passed up. It is not necessarily a measure of efficiency at producer level.
Even if it was, why are we forced to operate in this arena of double standards where our political masters prevent access to potentially useful technologies for the common good. Yet products originating from banned technologies and produced using inputs that have been prohibited here can be imported, almost without question. And quite a number of these ingredients are associated with the destruction of ecosystems elsewhere.
That is not to suggest that our tillage sector has no flaws
These problems are not unique to Ireland – they are issues for all growers in the EU. However, we have developed a disproportionate dependence on imports, which are now often seen as the norm rather than the top-up to native production.
That is not to suggest that our tillage sector has no flaws. We have developed a strong dependence on a range of pesticides. We also have a seriously challenging marketing system that relies on price being struck in the heat of the harvest.
Our attitude to selling does not facilitate forward buying and if a buyer wants to take forward cover, it can only be done on imported products. This will have to change, because the market buys most weeks of the year.
Imports increasing
Figure 1 shows the trend in net import levels of livestock feed ingredients from 2000 to 2018.
While 2018 was exceptional due to the shortage of fodder, the trend is upwards and is following feed usage. If this continues with the intention of leaving Irish grains in store, we are walking on very thin ice in terms of our ability to persuade others that what we export is Irish.
In his report, Professor Wallace points out that this increase in Ireland’s net imports of livestock feed materials increased at a linear rate of 113,000t per annum between 2000 and 2018, mainly towards the end of the period.
Cereal imports are not directly included in the feed ingredients mentioned previously and import levels of these products have also increased substantially, especially maize
Leaving aside the uniqueness of 2018, he pointed out that imports of key concentrate feed ingredients in 2017 amounted to almost 4m tonnes, with a trade value of around €800m. If all of this could be sourced in Ireland (and it cannot be currently), it would be worth an additional €1.6bn to the economy due to the multiplier effect. This should remain an objective for all in the sector.
Cereal imports are not directly included in the feed ingredients mentioned previously and import levels of these products have also increased substantially, especially maize. The report indicated a linear rate of increase of 64,000t per annum between 2000 and 2018. These cereal imports were 1.6m tonnes in 2017 and valued at €257m.
Maize is now by far the biggest cereal import, hitting 1.1m tonnes in 2017, with over 1.5m tonnes in 2018. The main origins of maize imports during 2014-2018 are shown in Figure 2.
While Ireland has long had a requirement for imported flour, to help meet the requirements of modern baking practices, it still used to have a supply line into the sector.
But this has gradually gone and the closure of all industrial flour mills brought our involvement to a relatively sudden end.
We do, in theory, still have one retail flour mill in Portarlington, but it stopped taking Irish wheat a few years ago. So, except for a handful of artisan millers and bakers, there is no Irish wheat being used for baking.
As a consequence, net imports of wheat flour have been increasing for years. The report states that these imports increased at a linear rate of 7,000t per annum between 2000 and 2018, reaching 210,000t (€80m) in 2018.
With healthier eating an increasing challenge for society, issues like this need a more holistic examination of the options, as the UK will shortly be gone as our main source of flour
While this could not be totally replaced by Irish-grown wheat, the time has come to ask if we can do more with the wheat we can grow to make bread products that are regarded as being healthier than the sliced pan. With healthier eating an increasing challenge for society, issues like this need a more holistic examination of the options, as the UK will shortly be gone as our main source of flour.
I also understand that there have been considerable advances in milling technology which, when combined with improved assembly practices for individual varieties, could widen the window of opportunity for Irish-grown wheat across a broad range of flour markets.
Cheaper imports from outside of the EU are now a huge driver of the erosion in profitability of native cereal production.While cereal production has declined somewhat due to the reduction in area and the move to non-cereal crops, the overall demand for feeds has increased disproportionately, following the expansion in dairying. Demand for wheat to make Irish flour is now virtually zero – this situation merits serious consideration with regard to the type of baking products we could make from Irish ingredients.
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