Contact: Dr Austin Mescal
Introduction
The Agriculture and Rural Development Committee of the RDS considers that there is an urgent need for increased emphasis on strategic analysis and planning in relation to the development of agriculture and the food industry, in the broadest sense, in Ireland. Short term initiatives have questionable value in a developmental sense - given the scale and nature of the sector the focus must be medium to longer term if maximum national social and economic return on investment is to be secured. Development planning for the sector must also encompass the sense and direction of broader social concerns and sentiment, current and emerging, in domestic and key export markets. The Committee welcomes the appointment of the Agri-Food 2010 Committee and the breadth of the Terms of Reference which it has been given. The Committee wishes to submit the following observations for consideration by the Agri-Food 2010 Committee in the course of its deliberations.
The Backdrop of Subsidies
Arguably the most notable characteristic of the functioning of the agricultural economy in Ireland today is its dependence on subsidies, overwhelmingly from the EU. While much of this centres on primary producers, its effects extend to processors of Ireland`s agricultural output and to the food sector in general. It is widely recognised that the level of subsidies which have obtained in recent years are not sustainable in the longer term and this is reflected in AGENDA 2000. Furthermore the EU is increasingly intent on de-coupling subsidies from production and channelling supports to the agricultural/rural economy via other routes, many of which are environment-related. Subsidies will continue to play a major role in Irish agriculture throughout the timeframe on which the Agri-Food 2010 Committee has been asked to focus and adjustment to / removal of subsidies will continue during that period to be largely dictated by developments at EU level. There are nonetheless compelling grounds for intensifying (and, in many parts of the agri-food sector, beginning) during the next decade the process of identifying and pursuing means by which Irish producers and processors can compensate for reducing subsidy support by securing market premia and by diversifying their operations.
Premia and the Psychology of Staying Ahead
There are and will continue to be increasing opportunities to increase market share and to secure price premia in consideration of the elements of supply security, timeliness of delivery, traceability, grading, quality assurance, food safety, food novelty and, where animals are involved, demonstrable and consistently high standards of animal welfare. In looking to a future in which existing subsidies will become increasingly problematic, Ireland must identify, invest in and pursue means by which under each of these headings we can (while still respecting relevant EU-wide / GATT, etc requirements / standards) ultimately score higher than the competition in the eyes of consumers and buyers. In an increasingly competitive environment it will be inadequate to simply `march in step with what Brussels requires` or `stay in line with what our competitors are doing`. It must also be acknowledged that in an increasingly affluent and sophisticated world, cost is not everything and price is but one (albeit important) consideration for increasing numbers of consumers in informing their purchasing decisions - more factors than ever before are now in play. Taking each of the foregoing, and any other relevant, headings, a critical, sharply-focused, positively-driven, integrated, strategic analysis of how we can at best offer something unique or at least outpoint the competition is urgently required - such an analysis should provide for input from interests in key export markets (if necessary via Bord Bia).
Diversification
Where diversification is involved, it should be driven by sound market research (again with an external input), quality validation and by ease of access to practical advice, commercial financing (including adequate venture capital, where appropriate) and marketing support. It is not sufficient for diversification to be left entirely to the whim of individuals; nor should it be the creature of short term expediency. A greater regional emphasis should be put on on-farm diversification, consistent with other regional development objectives, strategies or considerations - what is sold as diversification in Laois may run into difficulties in North Leitrim!
Growing the `Niche Products`
In recent years there is evidence of significant activity in the areas of organic production, `farmhouse products`, etc. While this is invariably lauded, and while some support and encouragement at Government level has been given, there is a sense that many of those involved are either left to their own devices or find themselves having to `shoe-horn` their operations into regulatory, promotional or marketing frameworks which in scale and / or nature are alien to them. This undoubtedly creates a range of difficulties for such producers, many of which must invariably affect their cost base and potential for sustainable growth. In the origins of and motivation for much of the activity in these areas are elements which are very close to the core of Ireland’s marketing image (not only as regards food) - harmony with nature, variety and vitality, wholesomeness and enjoyment, adventure and discovery, care and concern for our environment. In capitalising on these images we are tapping into an existing sense of Ireland, particularly on export markets, and products of this kind (albeit that they may be seen as serving niche markets) lend themselves so easily to marketing along these lines that they hold obvious potential for significant further growth and should be given all necessary practical support in terms of development, production, marketing, access to markets, etc. Consideration should be given to creating a dedicated unit, perhaps within Bord Bia, which would be charged with facilitating in every respect growing and maximising the contribution of this sub-sector - if necessary using a form of `sub-branding` (while respecting the diversity which is the hallmark of this sub-sector) with the overall marketing campaign for Irish foodstuffs.
Horticulture
The importance and growth potential of horticulture as an alternative enterprise in rural Ireland should also be recognised and receive due attention. On the basis of a considered evaluation of critical factors and market possibilities over the medium term for exports and for import substitution, landowners should be made aware of the opportuinities across the entire spectrum of horticultural activity, from fruit and vegetable production to flower growing. While there are some noteable exceptions, such as the mushroom industry, there is all too clear evidence of a growing dependence on imports to serve the home market and of dis-interest in realising the full development potential which horticulture in its broadest sense has to offer.
Forestry
Forestry has undoubted potential to benefit Irish farmers and the rural economy. This was recognised in the Government`s 1996 Strategic Plan for Forestry “Growing for the Future”, which set out ambitious planting and development targets for the sector within an integrated framework. Annual planting levels have now, however, fallen to well below the levels necessary to meet the Plan`s targets. The ground which has been lost as regards planting activity over the past three years and other relevant factors, including the likely impact of the currect Planning and Development Bill which proposes a significant tightening of planning controls on forestry, make it highly unlikely that the Plan`s targets will be met. Furthermore there remains a form of schizophrenia in many areas of and among many organisations concerned with rural Ireland which must be addressed if forestry is ever to be accepted to a degree that will allow its potential to be realised. The place of forestry in Irish agriculture, which received considerable attention in the Plan, and the plan`s objectives and targets now need to be re-assessed and a degree of consensus secured amongst all of the key players which should then define and provide the basis for the next phase of forestry development in Ireland.
Agri-Tourism
The numbers of visitors to Ireland over recent years and the increasingly varied tourism products being sought by potential visitors to Ireland point to potential for significant further growth in agri-tourism. This impression is enforced by the trend of increased urbanisation of society across Europe and in other tourist markets and by an increasing interest in and concern for the environment among successive generations.
Against this backdrop, and as an alternative, family farm enterprise which can at certain times of the year generate an income to supplement more conventional forms of farm income, agri-tourism warrants sustained practical support throughout the next decade. There would be merit in considering a targeted marketing campaign, aimed at certain identified, key market segments (allied perhaps to a cultural/ heritage/ historic/ genealogical dimension) which, while generic in nature (eg “Stay awhile in an Irish farmhouse”), would include only those farms which met defined minimum standards of accomodation, cleanliness, safety, animal welfare, etc.
Structural Questions for Irish Farming
The numbers leaving farming and the transition from full to part-time farming on many holdings pose major development questions for Irish agriculture. These issues go to the core of what type of agriculture we want in the future. Are we satisfied to allow a drift towards larger holdings with fewer farmers operating them and a prevalence of part-time farmers or do we want to offer farming as a career to young people, including those from non-rural and non-farming backgrounds? If the former is the case, it will require the relinquishment of many of the time-honoured historical and cultural perceptions and values applied to rural Ireland and will call into question many of the constants or tenets of long-established official policy towards agriculture and rural Ireland. If we are to go the latter route, an entirely new set of (potentially exciting) challenges arise, many of which will raise structural issues in rural Ireland and will demand responses across a range of considerations, from education and training to financial engineering. This would seem to be the most pressing social aspect to the development of Irish agriculture over the coming decade and it would seem obvious that efforts should be made soon to achieve some form of social consensus on this issue as a pre-requisite to any form of deliberate action which might be seen to favour either option. Given the age profile of Irish farmers and the scale of the exodus from farming, allowing this issue (which cannot but impinge on policy in a variety of areas) to simply drift indefinitely is not an option consistent with the optimal development of Irish agriculture.
Awareness of the Consumer
There has been repeated evidence of insensitivity on the part of Irish farmers and primary food producers to the concerns, preferences and sentiment of consumers. Farmers and many processors have shown themselves to be dismissive and intolerant of concerns about food safety, cleanliness, drug residues, animal welfare, live exports, environmental protection, etc. They may well feel they have good grounds for such intolerance but the reality is that such concerns, and others, are now increasingly influential in shaping consumer sentiment (perhaps more so in urban markets) and ultimately informing consumer choice. To refuse to reasonably recognise, address and accommodate such concerns is now effectively to refuse to recognise market forces. As with other market forces, those who embrace, accommodate and turn them to advantage will prosper in relative terms, while those who remain resistant will find themselves increasingly out-paced by the competition. This message has yet to get home to many of those involved in farming and food production in Ireland today. If we are ever to pursue the premia (see. para. 2 et seq. above) which will increasingly be available to those who are seen to reflect such concerns in their production methods and products, it is vital that primary producers, and indeed processors, be exposed to a much greater extent to the concerns of the end-consumer. It is vital that means be put in place to ensure that they are kept aware on an ongoing basis of consumer sentiment and concerns, current and evolving. It would be preferable that this be done via established bodies which would have been `tried and trusted` by those concerned and might be expected to be listened to. Whatever the means, however, the issue is a developmental one and, being fundamental in terms of the approach and attitude of primary producers to the way in which they carry out their business, requires to be addressed sooner rather than later. Given that younger farmers, who will carry Irish agriculture through and beyond the next decade, have been exposed to many of the same influences as younger people in urban areas and are therefore, arguably, more amenable to acknowledging the concerns of consumers, any measures in this area should be first targeted at them. This element of `ongoing consumer awareness` should also be made an integral part of farming education and farmers should be equipped with the skills necessary to themselves monitor and maintain an awareness of consumer concerns, sentiment and preferences.
Quantity and Quality
There is an emphasis in many areas of Irish agriculture on volume production. While this may be desirable or indeed unavoidable in certain areas, greater attention should be focused on production of a high-quality product. It would seem desirable, for instance, that greater effort be put into producing quality cattle at a younger age. The production of high quality, younger animals should hold out economic attractions for many farmers and a finer focus might usefully be brought to bear on encouraging greater of their number to recognise and exploit such possibilities.
Fertiliser and Chemical Use
In recent years, the excessive use of certain fertilisers by Irish farmers has been highlighted. This is not only an unnecessary expense, taking in aggregate many millions of pounds out of Irish agriculture, but it has contributed to environmental damage and attendant damage to the image of farmers and farming. It is recognised that efforts have been made to address this problem but it is reasonable to suppose that the problem will periodically recur if recurrent advice is not given to farmers on fertiliser use and on the cost and consequences of mis-use. This consideration applies equally to other products used in modern farming, viz. animal remedies, insecticides, herbicides, etc.
Support for Efficiency
Notwithstanding the foregoing concern, it is recognised that such products have a valid place, when used as necessary, in modern farming. Against the inexorable trend towards world prices, farmers must be educated and equipped on an ongoing basis on the best available methods to contain cost and improve efficiency at all stages of production, processing and marketing. Efficient, well-resourced organisational support and the required investment in research and the delivery of education and training, initial and ongoing, to support farmers in this regard must be made available on a sustained basis.
Simplifying the Bureaucracy
The business of farming and producing food has become ever more complex over the past three decades. Farmers and processors must now successfully navigate an ocean of forms (application and renewal), returns, checks, maps, etc. if they are not to fall foul of the authorities and risk imposition of a penalty in one form or other. While issues such as food safety, consumer reassurance, etc. must be paramount and the need for proper accountability is fully acknowledged, it is nonetheless a fact that `paperwork` (which, it must be accepted, is an integral part of any modern farming enterprise) is taking up an increasing amount of a farmers time and that the nature of this paperwork is becoming increasingly complex. Apart from its impact on existing farmers, this well-publicised element is yet another contributory factor in creating an image of farming in Ireland today which is unattractive to many young people.
A serious and sustained effort must be made at Government level (and indeed also when prospective EU requirements are being discussed) to reduce, amalgamate and simplify, wherever possible, the documentation which must be dealt with by farmers. Outside expert assistance, and the direct involvement of farmers themselves, should be a feature of this project. Increased use of computer-based technology should be evaluated, including the possible use of established networks such as those operated by An Post, ESB, Telecom, ESAT, etc.
Bridging the Urban/Rural Divide
The purposeful, vigorous development of Irish agriculture and our food industry into and through the coming decade requires the support of all the people of Ireland. It requires that those who have no direct involvement in farming and food production understand how such activities indirectly affect their lives, and in many cases livelihoods. It requires that they understand the role of such activities in Irish society and in the Irish economy. Where the support of EU or Irish taxpayers is made available in support of such activities it is important, if they are to recognise the validity of such support, that the non-farming population understands why it is also serves their interests. They are also entitled to expect and see that the recipients of such support - those who produce the food they eat - are aware of their particular priorities, concerns and worries and are responsive to them. There should be no room in this country for an urban / rural divide - the degree of mutual interdependence and contact is so great as to point up the nonsense of such a divide. And yet relations between the farming community, in particular, and their urban counterparts have so often been characterised by suspicion, intolerance, insensitive comments, caricatures and thinly-veiled animosity. If Irish agriculture and food production is to have a positive, benign environment in which it can continue to develop, then it must seek and retain the support of the broader community. This requires not alone that it accepts the need to explain itself from time to time but that it is also demonstrably willing to acknowledge and accomodate valid concerns on the part of the broader community. Given that younger farmers and their urban counterparts have now so much in common in terms of shared experiences and influences, it is not too much to expect that the coming decade will be one in which much of the mutual mistrust and antagonism which has built up over recent years will be dissipated.
Concluding Observations
Powerful forces will shape Ireland`s agriculture, farming and processing industry in the coming years. We have referred to some and the need to accomodate them. Success requires recognition of these facts and we conclude our submission by brief reference to some key elements, viz.
The Agriculture and Rural Development Committee of the Royal Dublin Society wishes the Agri-Food 2010 Committee well in its deliberations, hopes that its own contribution will be of assistance and looks forward with anticipation to the Committee’s report.