A lot has changed in the world since this time last year. The business cycles for farming and the wider economy are once again running in contrary directions. While the past two years have seen the Irish economy expand at the fastest rate in Europe, the same period has brought mixed fortunes for farmers.

The current mix of falling commodity prices, geo-political uncertainty, particularly in the UK, along with overall anaemic economic growth in many developed and now emerging economies is putting stress on the food supply chain. In this report, we highlight the opportunities, challenges and risks for the sector.

For many, 2016 will be much tougher than it was in 2015, but we must not lose sight that our industry has an excellent long-term opportunity ahead of it.

The combination of falling commodity prices and adverse movements in exchange rates is likely to provide the greatest challenge to Irish agribusinesses and farmers in the coming period. In today’s world, Irish agribusinesses and farmers are influenced by international trends, opportunities and threats. Most markets, domestic or otherwise, are influenced by the effect of wider global events. Therefore, businesses must bring an international outlook to their activities. This will help them survive and thrive in the long term.

Many countries are now developing long-term strategies for their farming sectors, with an eye on building export opportunities. Last year, Ireland set its target, under Foodwise 2025, to grow agri-food exports by 70% to €19bn over the next 10 years.

But, as outlined in this report, the world is becoming increasingly internationalised. This poses one of the greatest challenges to a country like Ireland, exporting 90% of its agricultural output. Therefore, we will have to ensure Ireland remains competitive by improving our productivity as fast as some of our main competitors have.

International trade agreements, be they focused on export subsidies, market access or domestic support, look set to be the game changer on setting the relative competitiveness of a country or region.

Driven by the changed consumer, every agribusiness we surveyed is now firmly focused on sustainability.

While there are many differences between countries surveyed in this report, there are a striking number of similarities. Driven by the changed consumer, every agribusiness we surveyed is now firmly focused on sustainability. Origin Green has established itself as the leader in this field globally, but now it must capitalise on its authenticity.

Furthermore, food security, climate change and the challenges of global population growth are core political and economic challenges inescapably linked to the dynamics of agriculture and food production. The world is indeed not flat when it comes to food production. The EU must decide what it wants. If that is a secure supply of safe and quality food for its people, then it must support that.

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To read the full Agribusiness report, click here.