2016 2017 - agriculture review and outlook for agriculture, food and the marine 2016—2017

Annual Review and Outlook

for Agriculture, Food and the Marine

2016—2017

Off-farm Income

64% of farms had either a farmer

or spouse receiving an off-farm

income

Payment to Farmers

Over €1.8 billion was paid by the

Department to 138,000 farmers

in 2016.

Employment

Over 173,000 people were

employed in the Agri-Food sector

in 2016.

Brexit

In 2016 the Department

established a Brexit Response

Committee and a dedicated

Brexit Unit.

Trade

Agri-food sector exports totalled

€12.2 billion in 2016. 10.6% of

total merchandise exports.

Gross Value Added

The Agri-Food sector accounted

for 7.6% of GVA at Factor Cost

(2014).

Family Farm Income

Average family farm income

(FFI) was €24,060 in 2016,

however this varies across farm

types.

Annual Review and Outlook 2016—2017

Top 5 Export Markets

United Kingdom

United States

China

(incl. Hong Kong and Macau)

France

Netherlands

Input Costs

Total input costs for agricultural

inputs fell by 3.5% between

2015—2016, the most significant

of which, fertiliser costs reduced

by 14.9%.

DAFM payments by Gender

12% of Irish farmers in receipt of DAFM payments

are women, averaging 62 year of age.

31% of female farmers are over 80 years of age.

Poultry

Irish production levels increased

by 10% in 2016 compared 2015.

Retail sales of fresh and chilled

poultry increased by 8% on the

Irish market during the year.

Cereals

Output value of cereals was

€236.1 million in 2016.

Volume remained mostly

unchanged decreasing slightly

by 4%.

Sheep

Ouput value of the sheep and

lamb sector was €255.6

million, rising by 4.6% from

2015.

The Department launched the Sheep Welfare

Scheme in December 2016.

Cattle

Average price for R3 steers was

377c/kg in 2016, higher than

the EU15 average.

Output value of the cattle

sector was €2,282.7 million in 2016, a 6.8% increase

since 2012.

Forestry

Forest cover in Ireland was

731,000 hectares (2012) 10.5% of

total land area.

Aquaculture Licensing

The Department completed

assessments and issued 122

licence determinations in 2016.

Pigs

Output value of the Pigmeat sec-

tor in 2016 was €476.6 million, an

increase of 2% from 2015.

The Irish price for pigmeat at year

end was 3% higher than the EU average.

Farm Structures

Average farm size is 32.5 hectares

139,600 farms in Ireland (2013)

Average standard output per farm is €35,912

Age Profile of Farmers

The average age of a farmer is 57.5

years.

Dairy

Ireland produced 6.85 million

tonnes of raw milk in 2016, an

increase of 4% from 2015.

Value of dairy exports increased

by 2.4% in 2016.

Annual Review and Outlook 2016—2017

Vectors designed by: Freepik.com

Contents

Foreword by Mr. Michael Creed T.D.,

Minister for Agriculture, Food and the Marine 7

Chapter 1: Agri-Food Sector and the Economy 8

1.1 Contribution of the Agri-Food Sector to the Economy 8

1.2 Agricultural Accounts in Ireland 10

1.3 Food Wise 2025 11

Chapter 2: Farm Incomes and Structures 14

2.1 Overview 14

2.2 National Farm Income (Operating Surplus) 14

2.3 National Farm Survey 15

2.4 Farm Viability Analysis 20

2.5 Farmer Income 22

2.6 Farm Numbers and Size 24

2.7 Age Profile of Farmers 25

2.8 Labour Input 27

2.9 Employment 29

2.10 Land Prices and Land Mobility 30

2.11 Investments, Borrowing and Interest 34

2.12 Women in Agriculture 39

Case Study: ACORNS Project 43

Chapter 3: Agricultural Commodities and Inputs 44

3.1 Overview 44

3.2 Dairy 46

3.3 Cattle 51

3.4 Sheep and Lambs 55

3.5 Pigmeat 58

3.6 Poultry 61

3.7 Cereals 63

Contents

Chapter 4: Trade 72

4.1 Overview 72

4.2 Agri-food sector trade by Value and Volume 72

4.3 Agri-food sector trade by Destination 75

4.4 Key markets for Irish exports 77

Case Study: Effect of Brexit on the Irish Agri-Food sector 80

4.5 Prepared Consumer Foods 84

Chapter 5: EU and International agricultural policy 88

5.1 Overview 88

5.2 EU Agriculture Policy 88

5.3 International Comparisons of Agriculture Support 89

5.4 EU Developments 92

5.5 International Trade Developments 94

Chapter 6: Food and the Consumer 96

6.1 Overview 96

6.2 The Food and Beverages Sector 96

6.3 Employment in the Food and Beverage sector 98

6.4 Food Prices 103

Case Study: Functional foods for Optimal nutrition for healthier ageing (OPTI-AGE) 105

Chapter 3: Agricultural Commodities and Inputs

3.8 Horticulture and Potatoes 66

3.9 Intermediate Consumption 69

Chapter 7: Fisheries 106

7.1 Overview 106

7.2 Seafood Production 106

7.3 Employment 109

7.4 Common Fisheries Policy 110

7.5 Brexit and the Irish Seafood Industry 111

Contents

Chapter 7: Fisheries

7.6 Fish Quota Management 111

7.7 Inshore fisheries and Natura 2000 management 111

7.8 Aquaculture Licensing 112

7.9 The Irish Fishing Fleet 113

Chapter 8: Forestry 115

8.1 Overview 115

8.2 Forestry strategy and financial supports 117

8.3 Forestry in 2015 117

8.4 Trade 119

8.5 Forestry and climate change 120

8.6 Forest health 121

8.7 Forest seed and plant marketing regulations 121

8.8 Exports of wood packaging material 121

Case Study: CICLT Project - Opportunities for Irish Cross-Laminated Timber 123

Chapter 9: The Enviornment and Rural Development 124

9.1 Overview 124

9.2 National Climate Change Strategy 124

9.3 Bioenergy 125

9.4 Greenhouse gas emissions 126

9.5 Greenhouse gas emission targets 128

9.6 The Gothenburg protocol and NEC directive 129

9.7 International research affiliations 130

Case Study: Farming and natural resources—Measures for Ecological Sustainability 131

9.8 Rural Development Programme 2014 - 2020 132

9.9 Rural Innovation and Development Fund 138

Statistical Annex 140

Annual Review and Outlook 7 | P a g e

Foreword by Minister Michael Creed

Foreword by Minister Michael Creed

I am pleased to welcome the publication of my Department’s Annual Review and

Outlook for Agriculture, Food and the Marine 2016 - 2017. This is a very useful

publication which brings together information and statistics on a variety of key topics

which impact on the agri-food sector.

The agri-food sector is Ireland’s largest indigenous industry and continues to play a

crucial role in Ireland’s economic recovery, with a turnover of €26 billion,

contributing 7.6% of GDP and generating 10.3% of all exports in 2016. The agri-food

sector has performed strongly in recent years with the value of exports increasing by

about 2% in 2016 to reach €12.2 billion, marking growth of over 56% since 2009. The

sector also makes a significant contribution to employment, particularly in rural areas, accounting for 8.6%

of total employment.

While the Irish agri-food sector faces considerable a period of considerable uncertainty arising from Brexit, I

am confident that our shared vision for the sustainable development of the sector, as expressed in the Food

Wise 2025 strategy, will enable us to address the challenges ahead. I chair the High Level Implementation

Committee which drives progress on implementing the strategy’s detailed recommendations, addressing any

blockages, and engaging with stakeholders on an ongoing basis. This joined-up approach is particularly

important in dealing with the cross-cutting issues facing the sector.

Having a strong evidence base is essential for policy formation and implementation. I am confident that the

data included in this Annual Review and Outlook will inform policy analysis and debate over the next year.

Michael Creed T.D.

Minister for Agriculture, Food and the Marine

Chapter 1: Agri-Food Sector and the Economy

Table 1.1 Indicators of the National Economy, 2014 - 2017

Indicators of the National Economy

Published Data Published Forecasts

2014 2015 2016

Department of Finance Central Bank ESRI

2017

GNP 8.4% 25.0% 10.1% 5.3% 3.3% 3.5%

GDP 7.9% 34.7% 5.2% 5.5% 3.5% 3.8%

GNI(1) 8.0% 11.9% 9.4% - -

Exports of Goods and Services 9.0% 20.6% 8.3% 5.0% 4.4% 5.9% Imports of Goods and Services 16.6% 28.5% 15.8% -2.0% 5.8% 7.6%

Inflation - HICP (%) 0.3% 0.0% -0.2% 0.6% 0.7% 0.7%

Employment - % Growth 1.7% 2.6% 2.9% 2.7% 2.6% 2.9% Unemployment Rate ILO basis (%) 11.3% 9.5% 7.9% 6.4% 6.4% 6.4%

Source: Central Statistics Office, Department of Finance, Central Bank of Ireland, ESRI

Note: (1) Gross National Income (GNI) is GDP plus any income paid into the country by other countries for items such as

interest and dividends (less similar payments paid out to other countries, while GDP is the total market value of all goods and

services produced by domestic residents.

1.1 CONTRIBUTION OF THE AGRI-FOOD SECTOR TO THE ECONOMY

Gross Value Added

It is estimated that the agri-food sector which is classified as primary production (Agriculture, Fishing and

Forestry) along with Food, and Beverages (grouped in the National Income and Expenditure classification) and the

wood processing sector, accounted for approximately 7.6% of Gross Value Added at Factor cost in 2014. This is

the Gross Value Added at market prices less any indirect taxes plus any subsidies. Table 1.2 provides a further

breakdown of these figures.

€m

Gross Domestic Product (GVA) at Factor Cost €170,602m

GVA in Primary Agriculture, Fisheries and Forestry at Factor Cost €4,189m

GVA in Food & Beverages Sector €8,562m

GVA in Wood Processing (estimated) €178m

Total Agri-Food €12,929m

GVA in Primary Sector as a % of GVA 2.5%

GVA in overall Agri-Food Sector as % of GVA 7.6%

Table 1.2 Contribution of the Agri-Food Sector to GVA, 2014

Source: Central Statistics Office, National Income and Expenditure, 2014


http://www.cso.ie/en/releasesandpublications/er/nie/nationalincomeandexpenditureannualresults2014/

ON

E Employment

Employment in the agri-food sector accounted for an average 173,400 jobs, or 8.6% of total employment, on

average in 2016, with some seasonal variation. 112,900 people were employed in primary agriculture, forestry

and fisheries, with the balance employed in food processing (51,900), beverages (4,700), and wood processing

(4,000)

Figure 1.1 Composition of Employment in the Agri-Food Sector, 2016

Agriculture, Forestry & Fishing

65%

Food30%

Beverages3%

Wood Processing2%

Source: Central Statistics Office, Quartely National Household Survey, 2016 Average

Table 1.3 Expenditure on Irish Agriculture, 2016

(Period 1 January to 31 December 2016) €m

EAGGF Guarantee direct expenditure 1,249.0

Basic Payment/Direct Payment Scheme 1300.0 Intervention/Aid to Private Storage (1) 3.0

Other Market Supports 7.0

Other -61.0

Voted Expenditure (excluding Administration) 1040.7

Rural Development (2) 422.6

Structural Measures (2) 18.4

State Bodies 211.0

Horse and Greyhound Fund 74.0

Animal Health 77.7



1.2 AGRICULTURAL ACCOUNTS IN IRELAND

Analysis of data for aggregate output, input and income in Irish agriculture is outlined in Figure 1.2 and Table 1.4.

While there was a 1% decrease in the value of Goods Output, and a 1.6% increase in the cost on Intermediate

Consumption, an increase in the value of subsidies received meant that Operating Surplus (profit) increased by

3.6% compared to 2015.

Figure 1.2 Trends in Operating Surplus, Goods Output and Intermediate Consumption, 2011 - 2016

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

8,000.0

2011 2012 2013 2014 2015 2016

Goods Output at Producer Prices (€ Million) Intermediate Consumption (€ Million)

Source: CSO Output, Input & Income in Agriculture. Final Estimates 2016

Research and Training 30.2

Market Support Costs 22.1

Forestry and Bio-Fuels 103.8

Fisheries 18.9

Food Aid / World Food Programme 40.0

Other 22.0

Administration 216.1

Total Voted Expenditure 1,256.8

Total DAFM Expenditure 2,505.8

Note: (1) Intervention/Aid to Private Storage relates to the amount paid by DAFM on product purchased into Intervention in

the year. The cost of Intervention purchases is fully recouped from the EU through depreciation of stock value during the year

of purchase and at the time of sale of the product.

Note: (2) EAFRD Rural Development measures and certain Structural development measures are part financed by the EU and

the Exchequer. The EU contribution to expenditure is subsequently recouped as appropriations in aid, some of which are

received in a subsequent calendar year. Expenditure in 2016 comprises REPS, AEOS, Early Retirement, Areas of Natural

Constraint, Organic Farming, Beef Data & Genomics Programme (BDGP) and TAMS.


http://www.cso.ie/en/releasesandpublications/er/oiiaf/outputinputandincomeinagriculture-finalestimate2016/

ON

E Table 1.4 Output, Input and Income in Agriculture, 2015 - 2016

2015 2016 % Change 2015 - 2016 Value €m Value €m

Goods Output at Producer Prices 7,132.0 7,057.9 -1.0%

Contract Work 348.0 361.5 +3.9%

Subsidies less Taxes on Products -82.9 0.2

Agricultural Output at Basic Prices 7,397.1 7,419.6 +0.3%

Intermediate Consumption 5,021.3 5,103.4 +1.6%

Gross Value Added at Basic Prices 2,375.8 2,316.1 -2.5%

Fixed Capital Consumption 804.8 812.7 +1.0%

Net Value Added at Basic Prices 1,571.0 1,503.4 -4.3%

Other Subsidies Less Taxes on Production 1,415.9 1,592.1 +12.4%

Factor Income 2,986.9 3,095.5 +3.6% Compensation of Employees 489.0 507.7 +3.8%

Operating Surplus 2,497.8 2,587.9 +3.6%

Source: CSO Output, Input & Income in Agriculture. Final Estimates 2016

1.3 FOOD WISE 2025

Food Wise 2025, the ten year strategy for the agri-food sector published in 2015, underlines the sector’s

unique and special position within the Irish economy. It identifies the opportunities and challenges facing the

sector and provides an enabling strategy that will allow the sector to grow and prosper.

Food Wise 2025 identified ambitious and challenging growth projections for the industry over ten years to

2025:

85% increase in Agri-food exports to €19 billion.

Creation of 23,000 additional jobs all along the supply chain from producer level to high end value

added product development.

Food Wise identified the significant growth which has occurred in the sector over the last few years, and the

future global growth opportunities which Ireland is well placed to benefit from, including: the ending of milk

quotas; our reputation for food safety and controls; our natural competitive advantage in sustainable grass-

based production; and a world class agri-food industry, backed by strong State support services.

The sub-title of Food Wise is “Local Roots, Global Reach”, reflecting the importance of gaining a deep under-

standing of what consumers, often in distant markets, really want, and communicating those messages back

to Irish farmers and food companies. Equally important is to communicate key messages about what makes

Irish food unique to the international market.

Food Safety and Environmental Sustainability are both crucial to maintaining our existing markets and devel-

oping new market opportunities. Irish food is produced to the highest international standards of quality and

food safety. Irish food safety and traceability systems are recognised as among the very best in the world.


http://www.cso.ie/en/releasesandpublications/er/oiiaf/outputinputandincomeinagriculture-finalestimate2016/

Ireland is already one of the world’s most efficient food producers, in terms of carbon footprint per unit

of output. But we are implementing measures to drive down the carbon intensity of our food produc-

tion even further.

The ambition that Ireland should be a global leader in sustainable food production, building on our

natural advantages, is shared by the Government, farmers and food industry alike.

Initiatives such as:

Bord Bia’s world leading Origin Green programme

Teagasc’s research on climate change and environment

Support for national and locally led environmental schemes and knowledge transfer pro-

gramme provided under the Department’s Rural Development Programme, worth almost €4

billion over 7 years

Forestry Development Programme

All contribute to improving the environmental, as well as the economic and social, sustainability of the

sector

In addition to specific sectoral recommendations, Food Wise has five cross-cutting themes


Sustainability: Sustainability is key to the Food Wise strategy, which states that: “environmental protection

and economic competitiveness are equal and complementary – one cannot be achieved at the expense of

the other.” Food Wise enthusiastically supports technology and processes that result in a more efficient use

of resources.

Human Capital: Food Wise highlights the need for the attraction, retention and development of key skills

and talent right along the supply chain.

Market Development: Food Wise identifies the need to ensure that Irish products are targeted at the right

markets and at the right segments within these markets. In light of the decision of the UK to exit the Euro-

pean Union, Ireland is looking at diversifying our products to new markets.

Competitiveness: Food Wise identifies competitiveness challenges at farm and processing level. It calls for

productivity improvements through the development and application of cutting edge technology. Innova-

tion and human capital will be key.

Innovation: Food Wise identifies gaps in translating research into products/practice and in capacity to ab-

sorb new research. It argues for a greater focus on consumer insights in driving future investment in RDI.


Implementation Process

The implementation process for Food Wise is driven by the High Level Implementation Committee (HLIC)

which meets at least quarterly, chaired by the Minister for Agriculture, Food and the Marine and with partici-

pation from Management Board members, other Government Department’s and relevant State agencies.

An Environmental Sustainability Sub Group focuses specifically on monitoring and driving the sustainability

recommendations.

A Meat Implementation Group was established to monitor and drive the implementation of the specific meat

sector actions.

Following the vote by the United Kingdom to leave the European Union, Brexit is a standing item on the

agenda for all future HLIC meetings.

Steps to Success 2017

The second annual progress report of Food Wise 2025 entitled Steps to Success 2017 was launched on 6 July

2017.

Steps to Success 2017 outlines what the Department and its agencies have achieved in year two and what

they plan to achieve over the next 12 months.

Among the highlights of year two are:

Market openings secured for beef intended for grinding in the US, reopening of Egyptian and Israel mar-

ket to Irish beef, enhanced access for Irish beef to Saudi Arabia, beef and beef products to New Zealand

and sheepmeat to Iran.

In June, the USDA announced that Irish beef sold in the US from Bord Bia approved plants can carry the

USDA quality mark, which guarantees that it has been raised on more than an 80% grass diet; out to

pasture for six-eight months a year, on a sustainable, fully traceable family quality-assured farm; and

has been raised without the use of growth hormones; and that the use of antibiotics have been treated

responsibly.

DAFM’s €150m Agriculture Cash Flow Support Loan in cooperation with the Strategic Banking

Corporation of Ireland (SCBI).

Creation of a ‘one-stop-shop’ to attract and inform individuals of the benefits of a career in the sector.

The establishment of a ‘high level innovation team’ to review current agri-food sector innovation

capacity and better market that innovation capability.

DAFM have commissioned Bord Bia to undertake a market profiling exercise for potential third country

and EU markets for Irish exports in response to Brexit. This exercise will feed into our intensified pro-

gramme of trade missions and other initiatives aimed at opening new markets and developing existing

markets.

ON

E


Chapter 2: Farm Income and Structures

2.1 OVERVIEW

This chapter analyses data from the Central Statistics Office (CSO) including their 2013 Farm Structures Survey

and Teagasc’s National Farm Survey (NFS) to show developments in farm income in both Ireland and the EU.

In addition, the impact of off-farm income and direct payments are also examined. The viability of Irish farms

is considered using NFS results and support schemes for farmers administered by the Department of Social

Protection. Investment and borrowings in the agri-sector are also covered, as are analyses on the age profile

of farmers and on the role of women in agriculture.

2.2 NATIONAL FARM INCOME (OPERATING SURPLUS), 2016

The CSO’s preliminary estimate of output, input and income in agriculture for 2016 showed that operating

surplus was up 3% at €2,633m. The overall value of goods output by the sector decreased by 1.2%, to €7,049

million, while expenditure on intermediate consumption was marginally down, to €5,023 million.

The value of subsidies less taxes on production is estimated to have increased by 9.5% from

€1,401m in 2015 to €1,535m for 2016.

The estimated net subsidies less taxes figure of €1,538 million equated to 58% of the year’s operat-

ing surplus.

Figure 2.1 CSO Operating Surplus and Net Subsidies, 2008 - 2016

0%

20%

40%

60%

80%

100%

120%

140%

0

500

1,000

1,500

2,000

2,500

3,000

2008 2009 2010 2011 2012 2013 2014 2015 2016

€M

illio

n

Operating surplus Net Subsidies NSs as % of OS

Source: CSO Output, Input & Income in Agriculture data


http://www.cso.ie/en/releasesandpublications/ep/p-fss/farmstructuresurvey2013/

//sdbahdata0/sharedarea/Economics/EPD/PUBLICATIONS/Annual Review & Outlook/ARO 2017/Chapter 4/NATIONAL FARM SURVEY 2015.pdf/sdbahdata/users/Grainne.Roughan/EPD Misc

http://www.cso.ie/en/releasesandpublications/er/oiiap/outputinputandincomeinagriculture-preliminaryestimate2016/

http://www.cso.ie/px/pxeirestat/Database/eirestat/Agricultural%20Output%20Input%20and%20Income/Agricultural%20Output%20Input%20and%20Income_statbank.asp?SP=Agricultural%20Output,%20Input%20and%20Income&Planguage=0

TWO

Figure 2.2 Percentage change in real income per Agriculture Worker in EU-28 Member States,

2015 - 2016

-40.0

-30.0

-20.0

-10.0

+0.0

+10.0

+20.0

+30.0

Ge

rman

y

Po

land

Luxe

mb

ou

rg

De

nm

ark

Un

ited

Kin

gdo

m

Ro

man

ia

Cze

ch R

ep

ub

lic

Slovakia

Bu

lgaria

Finlan

d

Hu

ngary

Ne

the

rland

s

Malta

Lithu

ania

Au

stria

Cyp

rus

Irelan

d

Swe

de

n

Eston

ia

Po

rtugal

Spain

Slove

nia

Be

lgium

Italy

France

Gre

ece

Latvia

Cro

atia

% c

han

ge 2

01

5 -

20

16

EU 28 Average: -0.4%

Source: Eurostat

2.3 NATIONAL FARM SURVEY

The National Farm Survey (NFS) has been conducted by Teagasc on an annual basis since 1972. The survey is

operated as part of the Farm Accountancy Data Network (FADN) of the EU and fulfils Ireland’s statutory obli-

gation to provide data on farm output, costs and income to the European Commission.

A random, nationally representative sample is selected annually in conjunction with the Central Statistics Of-

fice (CSO). The sample represents 83,000 farms nationally. Each farm is assigned a weighting factor so that the

results of the survey are representative of the national population of farms.

Since the 2012 Teagasc National Farm Survey, farms below €8,000 of Standard Output (SO) are no longer in-

cluded in the sample. Farms are assigned to six farm systems on the basis of farm gross output, as calculated

on as standard output basis. Standard output measures are applied to each animal and crop output on the

farm and only farms with a standard output of €8000 or more, the equivalent of 6 dairy cows, 6 hectares or

wheat or 14 suckler cows, are included in the sample. Farms are then classified as one of the six farm systems

on the basis of the output of the farm.

National Farm Survey Preliminary results, 2016

In the most recent summary survey data for 2016 average family farm income (FFI) decreased by 9% to

€24,060. However, this average conceals differences across the various farm types.



Family Farm Income per Farm (FFI)

FFI is defined and calculated by Teagasc by deducting all farm costs (direct and overhead) from the

value of farm gross output. Unpaid family labour is not included as a cost. FFI therefore represents

the financial reward to all members of the family, who work on the farm, for their labour, manage-

ment and investment. It does not include income from non-farming sources and thus may not be

equated to household income.

Operating Surplus (OS)

Operating Surplus is defined and calculated by the CSO by subtracting compensation of employees

from factor income accruing from farm output. The figure is comprised of the operating surplus

earned by farmers and that earned by agricultural contractors. It is an estimate of income before

deductions for interest payments on borrowed capital, land annuities and rent paid by farmers to

landowners for the use of their land. It does not include income from non-farming sources and thus

may not be equated to household income.

Dairy farms account for about 19% of farms represented by the NFS - average dairy farm income fell by

17% to €51,809 mainly due to a fall in milk prices (-9%).

On cattle rearing farms average family farm income increased by 2% to €12,908.

Similarly, average income on cattle finishing farms increased by 3% to €16,887.

Average farm income on sheep farms decreased by 1% to €16,001

Tillage farm average income decreased by 9% to €30,816.

Family farm income varies considerably by farm system though overall Family Farm Income, as illustrated in

Figure 2.3, has remained relatively steady in recent years. The large variations are driven by differences in

both farm size and profitability. Dairy farms are consistently the most profitable farms, and almost all dairy

farms are classified by Teagasc as full-time farms, with farms requiring 0.75 of a standard labour input being

defined as full-time and those requiring less as part-time. Most cattle farms and the majority of sheep farms

are classified as part-time in terms of labour input requirements, even though in many cases the farmers may

not have an off-farm job, often because they are elderly.


TWO

Figure 2.3 Family Farm Income by system, 2013 - 2016

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2013 2014 2015 2016

Dairying Cattle Rearing Cattle Other Sheep Tillage All Farms

Source: Teagasc National Farm Surveys

Also drawing on the 2016 NFS data, table 2.1 shows that direct payments averaged €17,932 per farm in 2016,

accounting for 75% of family farm income. Again, there are noticeable differences between farm types -

Estimates for dairy farms show that direct payments account for only 37% of income, while cattle and sheep

farms are more reliant on direct payments and would be operating at a loss without them.

Dairying Cattle

Rearing Cattle Other Sheep Tillage All Farms

% of farms represented 19% 23% 32% 15% 9% 100%

Direct Payments (€) 19,397 14,590 16,694 17,726 26,327 17,932

FFI (€) 51,809 12,908 16,887 16,011 30,816 24,060

DPs as % of FFI 37% 113% 99% 111% 85% 75%

Table 2.1 Headline results from the National Farm Survey, 2016

Source: Teagasc National Farm Survey 2016 Preliminary Results


http://www.teagasc.ie/nfs/

https://www.teagasc.ie/media/website/publications/2017/Income-Estimates-2016.pdf


Full and Part-time Farms, 2015

A comparison of financial data for full-time and part-time farms is shown in Table 2.2, drawn from the full

results of the 2015 National Farm Survey (latest data available). Average farm income for the 38% of farms

classified as full-time was €51,557 in 2015. Full-time farms are the larger more viable farms, of which, 47% are

involved in dairying, 46% in other livestock systems and 6% in tillage.

For the 62% of farms classified as part-time the average family farm income was €11,058. These farms were

particularly reliant on direct payments to cover production costs with average payments of €11,988

accounting for 108% of family farm income.

Table 2.2 Main Results from National Farm Survey for Full-time and Part-time Farms, 2015

Dairying Cattle

Rearing Cattle Other

Sheep Tillage Mixed

Livestock All systems

Full-time

% of NFS population 18 3 6 5 2 4 38

UAA (ha) 57.8 61.9 74.2 70.6 112.5 71.5 67.3

Family farm income (€) 64,576 28,753 38,977 30,868 63,293 47,229 51,557

FFI/ha (€) 1,117 465 525 437 563 661 766

Direct payments (€) 20,686 27,574 31,603 27,487 42,465 25,956 25,748

DP as % of FFI 32% 96% 81% 89% 67% 55% 50%

Part-time

% of NFS population 1 21 25 10 4 2 62

UAA (ha) 21.8 31.7 30 40.4 30.4 36.4 32.4

Family farm income (€) 18,106 10,408 10,894 9,317 15,454 17,204 11,058

FFI/ha (€) 831 328 363 231 508 - 341

Direct payments (€) 8,346 11,130 12,079 13,036 12,629 14,844 11,988

DP as % of FFI 46% 107% 111% 140% 82% - 108%

Source: Teagasc National Farm Survey 2015


https://www.teagasc.ie/publications/2016/teagasc-national-farm-survey-2015-results.php

TWO

Off Farm Employment Income, 2015

The National Farm Survey 2015 estimates that 29% of farm holders had an off-farm occupation. Most of the

farmers with off-farm jobs were classified as part-time (in terms of labour input on farm) and had combined

farm and non-farm earnings of €35,125. Those with full-time farms and off-farm employment had an average

income of €53,896. Overall average off-farm earnings, for those who had off-farm jobs was estimated to be

€24,233, while average family farm income for these farms was €13,753 giving a combined income of

€37,986.

In just over half of all farms, either the farmer or their spouse held a job off the farm.

70% of farm holders stated that they had no off-farm income, with full-time farms in this category earning an

average family farm income of €53,759 and part time farms earning average family farm income of €11,903.

Overall, it was estimated that on 64% of farms, either the farmer and/or spouse had another source of

off-farm income, be it from employment, pensions or social assistance.

Figure 2.4 Estimate of Off-farm employment income of the Farm Holder, 2015

0 10,000 20,000 30,000 40,000 50,000 60,000

All farms

Full-time farms

Part-time farms

All farms

Full-time farms

Part-time farms

Farm

er h

as a

n o

ff-f

arm

jo

bFa

rmer

has

no

off

-far

m

job

€

Average off-farm income Farm income




2.4 FARM VIABILITY ANALYSIS, 2016


While farm income is a useful measure, it does not account for the economic viability of the farm business nor

does it make any allowance for the role of income earned outside of the farm in ensuring the sustainability of

farm households. To help address this issue the NFS also provides a viability profile of its farms broken into

three categories.

Viable

A farm is defined as economically viable if the farm income can remunerate family labour at the mini-

mum agricultural wage, and provide a 5% return on the capital invested in non-land assets

Sustainable

If the farm business is not viable, the household is still considered sustainable if the farmer or spouse

has an off-farm income

Vulnerable

A farm is considered to be economically vulnerable if the farm business is not viable and if neither the

farmer nor spouse work off the farm.

37% of Irish farms represented in Teagasc’s National Farm Survey were categorised as viable in 2016, with a

further 29% as sustainable because of the presence of off-farm income. These figures suggest that the viability

of farming has increased marginally since 2013 when 34% of farms were classified as economically viable.

Viable, 37%

Sustainable, 29%

Vulnerable, 34%

Figure 2.5 Viability of National Farm Survey farms, 2016

Source: Teagasc National Farm Survey 2016 Preliminary Results


https://www.teagasc.ie/media/website/publications/2017/Income-Estimates-2016.pdf

TWO

The viability of farming varies quite substantially by farm system. In 2015, 87% of dairy farms were

economically viable or sustainable, compared to 59% of ‘Cattle Other’ farms.

Figure 2.6 Viability of National Farm Survey farms by sector, 2015

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dairying Cattle Rearing Cattle Other Sheep Tillage Mixed Livestock

76%

20%28% 26%

63%

35%

11%

44% 31% 35%

17%

17%

13%

36% 41% 40%

19%

48%

Viable Sustainable Vulnerable


Figure 2.7 Viability of National Farm Survey farms by region, 2016

The mid-east is the most profitable region and contains the highest proportion of viable and sustainable

farms. The west (30%) and border (46%) have the highest proportion of vulnerable farms.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

37%

18%

55%44%

35%

52%43%

27%

29%

36%

26%

29%

29%

19%

18%43%

34%46%

18%28%

36%29%

38%30%

Viable Sustainable Vulnerable






2.5 FARMER INCOME

Total payments to farmers were estimated to be €1,815 million in 2016. This figure includes the subsidies

(defined by Eurostat) used by the CSO in the calculation of operating surplus in agriculture (Section 2.2), such

as Basic Payments Scheme, Areas of Natural Constraint, GLAS and disease compensation payments, but also

payments such as Forestry Premia, and the Targeted Agricultural Modernisation Scheme, which are not

counted as direct payments by the CSO.

Table 2.3 Distribution of all payments to farmers by region, 2016

Source: Department of Agriculture, Food and the Marine

The average payment under the Basic Payment Scheme was €9,568 in 2016, (although over 70% of recipients

received payments under this amount). 2.9% of total payments went to the lowest 20% of recipients while

37% went to the 10% of farmers with the highest BPS payments.

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

50

100

150

200

250

300

350

400

450

500

1st decile 2nd decile 3rd decile 4th decile 5th decile 6th decile 7th decile 8th decile 9th decile 10th decile

Mill

ion

s o

f e

uro

Total payments per decile (left axis) % of Payments (right axis)

Figure 2.8 Distribution of BPS Payments to Farmers by Decile, 2016



Overall Payments Total Number of Recipients Average Payment

Connacht €415,951,615 39,778 €10,457

Leinster €546,479,163 34,137 €16,008

Munster €659,627,394 45,929 €14,362

Ulster €192,940,128 18,573 €10,388

State €1,814,998,300 138,417 €13,113

TWO

Non-Agricultural Activities

In 2013, over 12,000 farms reported to the CSO that they undertook gainful non-agricultural activity on the

farm as a supplement to traditional farming. Forestry was the principal activity, with almost 6,300 farms en-

gaged in this activity, while over 2,000 farms were engaged in agricultural contracting.

Figure 2.9 Farms engaged in gainful non-Agricultural Activity

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000 6,300

2,100

1,200 1,000

800 700 400 400 400 300 300

Source: CSO Farm Structures Survey, 2013

Support Schemes for Farmers Administered by Department of Social Protection

Farm Assist is a means-tested payment to low income farmers, administered by the Department of Social

Protection. In order to qualify for Farm Assist, an applicant must be a farmer, be aged between 18 and 66 and

satisfy a means test. Those in receipt of Farm Assist receive a weekly payment, which varies according to the

number of dependents.

In 2016, an average of 8,200 farmers, received the payment every month, representing, 5.9% of the 139,600

farms in the State. Estimated expenditure on Farm Assist in 2016 was €79m.

The Rural Social Scheme (RSS) is an income support administered by the Department of Social Protection. It

provides supplementary income to farmers and fishermen/women in receipt of a social welfare payment,

including Farm Assist. Under this scheme, participants work for 19.5 hours a week providing services that

benefit the local community including maintenance of walking routes, care of older people and administration

work relating to not-for-profit cultural and heritage centres.




2.6 FARM NUMBERS AND SIZE

This Farm Structures Survey (FSS) 2013 is the first since 2007, with the 2010 Census of Agriculture being

published in between. As the results of the 2016 Farm Structures survey can only be expected in late 2018,

the 2013 data will be the most up-to-date until then. The FSS and Census are of particular interest for their

farm number and farm demographic data, unavailable in other sources. Though the FSS also covers animal

numbers and crop areas, this data is updated in Annual CSO surveys. Table 4.1 below shows the total number

and average farm size.

Table 2.4 Number and Size of Farms, 2013


0

5,000

10,000

15,000

20,000

25,000

< 10 10 - < 20 20 - < 30 30 - < 50 50 - < 100 ≥ 100

Farm

s

Hectares

BMW South and East


Figure 2.10 Number of Farms by Size of Farm and Region, 2013

State Border, Midland & West

Southern & Eastern

Number of farms (000s) 139.6 73.6 66

Utilised agriculture area excluding commonage (000s ha) 4,960 2,270 2,690

Average farm Size (ha) 32.5 27.1 38.6

Average Standard Output (€) 35,912 23,013 50,303




TWO

2010 2013

Number % Number %

000s 000s

< 35 8,700 6.2% 8,200 6.2%

35-44 24,600 17.6% 22,800 17.6%

45-54 34,600 24.8% 34,800 24.8%

55-64 35,000 25.1% 35,600 25.1%

>65 36,600 26.3% 37,700 26.3%

Total 139,500 100% 139,100 100%

Figure 2.11 Number of Farms by Category and Region, 2013


2.7 AGE PROFILE OF FARMERS

According to the Farm Structures Survey, 2013, almost half of all farm holders were aged between 45 and 65

years. A quarter of farm holders were over 65, with just 6.2% under the age of 35 years.

Table 2.5 Number and Size of Farms, 2013


0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Specialist tillage

Specialist dairying

Specialist beef

production

Specialist sheep

Mixed grazing

livestock

Mixed crops and livestock

Mixed field crops

Other

Farm

s

Hectares

BMW South and East





In comparison to Ireland, Eurostat data on the age profile of farm holders in the EU 28 countries shows that

31.1% of all EU farm holders are over 65 and 6.0% aged under 35, however the age profile of farm holders can

vary widely between EU countries, and between farms of different sizes. Figure 2.12 outlines this difference

using the EU average of 6% as a baseline point. As data from Croatia was unavailable at time of analysis,

Figure 2.12 Percentage of Farm Holders under 35, 2013

Source: Eurostat

Figure 2.13 Percentage of Farm Holders over 65, 2013


TWO

The age profile of farmers can be further assessed using data from an exercise undertaken on the

Department’s Customer Client System, for 2015. In total, 115,664 farmers (each a recipient of basic payment)

were captured in this analysis and results show that the average age of a farmer was 57.5. The proportion of

farmers under 35 had increased slightly since a similar 2012 exercise, to 5.5% though still remained lower than

those 80 and over (6.4%). The majority of farmers (63.3%) were in the 35 to 64 age bracket and the second

largest category were the over 65 group with 31.2% of the total.

It should be noted that this analysis excludes farms with herd numbers in joint names, many of which include

a young trained farmer. Further analysis will be carried out to include these farms in age profile analysis.

Figure 2.14 Age profile of DAFM Clients, 2015

0

2000

4000

6000

8000

10000

12000

14000

16000

18 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70 - 74 75 - 79 80+

Nu

mb

er

of

DA

FM c

lien

ts

Age breakdown

Source: Department of Agriculture, Food and the Marine, CCS Analysis

Note: The above figure excludes Joint Ventures

2.8 LABOUR INPUT

The most recent data available on labour input on farms is from the CSO’s Farm Structures Survey 2013. Total

labour input was calculated as 161,000 annual work units, of which 52% was provided by the farm holders,

42% by other family members and 6% by non-family – This split was virtually unchanged from the Census of

Agriculture data in 2010.



Data from the National Farm Survey 2015 can be used to examine excess labour supply on farms. On average,

labour input on Irish farms is estimated to exceed labour requirements by over 50%. Under-employment is

particularly evident on cattle and sheep farms, whereas dairy farms could be described as over-employed,

having less labour available than required.

Table 2.5 Comparison of Actual Labour vs. Estimated Labour Requirement

Dairy Cattle Rearing

Cattle Other

Sheep Tillage Mixed Livestock

All Systems

Full-time farms

Total actual labour units (1) 1.6 1.3 1.5 1.4 1.6 1.7 1.4

Standard man day (SMD) labour units (2)

2.3 1.1 1.3 1.3 1.8 1.9 1.7

Total actual labour as % SMD 72% 118% 112% 109% 87% 86% 84%

Figure 2.15 Labour Input in Agriculture, 2015


Note: (1) Actual labour units is defined as 1,800 hours or more worked on a farm by a person over 18 year of age.

Note: (2) Standard man days (SMD) is 8 hours of work supplied by a person over the age of 18. The number of SMD

required per hectare for the different crops and per head for various categories of livestock is used to calculate the total

number of standard man days required to operate the farm.

Source: Teagasc analysis using National Farm Survey 2015 data.

2.9 EMPLOYMENT

The CSO’s Quarterly National Household Survey for Quarter 4 2016 showed a headline increase in total

employment in the economy of 65,100 over the same quarter in 2015. Total employment in Ireland averaged

2,020,000 across the four 2016 QNHS quarters. Employment in the agri-food sector in 2016 averaged 173,000

or 8.6% of primary employment.

All farms

Total actual labour units 1.6 1.0 1.1 1.2 1.1 1.5 1.2

Standard man day (SMD) labour units

2.2 0.5 0.5 0.7 0.9 1.5 0.8


TWO


Table 2.6 Quarterly National Household Survey data: Agri-Sector Employment, 2016

'000s 2016 % of Total

All persons in employment 2,020.0 100.0%

of which

Agri-food Sector 173.4 8.6%

Agriculture, forestry & fishing 112.9 5.6%

Source: Central Statistics Office, Quarterly National Household Surveys, 2016

Part-time farms

Total actual labour units 1.1 1.0 1.0 1.1 0.8 1.3 0.9

Standard man day (SMD) labour units

0.6 0.4 0.4 0.4 0.4 0.6 0.4


http://www.cso.ie/en/releasesandpublications/er/qnhs/quarterlynationalhouseholdsurveyquarter42016/


Source: Central Statistics Office, Quarterly National Household Surveys, 2016

Note: QNHS data for the agri-food sector has been difficult to interpret after a new sample was gradually introduced in

Q4 2012 and the Q4 2013 CSO release. For agriculture, forestry and fishing, it can be noted that estimates of

employment in this sector have shown to be sensitive to sample changes over time, particular caution is warranted in the

interpretation of the trend in this sector over time.

2.10 LAND PRICES AND LAND MOBILITY

Society of Chartered Surveyors Ireland / Teagasc Land Market Review & Outlook 2017

The Society of Chartered Surveyors Ireland/Teagasc Land Market Review and Outlook 2016, aims to bring

together the respective expertise of both organisations to increase the range and quality of the data that is

available on the agricultural land market in Ireland and is the fourth release in the annual series. It

contended that “Our ability to understand the challenges and opportunities farmers face depends on our ca-

pacity to produce and interpret a wide range of factors relating to the agriculture sector, including the opera-

tion of the land market.”

Figures from the four surveys to date indicate that there are significant differences in average land prices in

Ireland and that prices per acre of land have changed to different degrees, between 2010 and 2016,

depending on land area and geographic location. Munster and Leinster showed increases in all three size

categories, whereas prices fell in Connacht/Ulster for two of the categories.

Figure 2.16 Agri – Food Sector Employment, 2007 - 2016

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Agri-Food Sector Agriculture, Forestry and Fisheries


https://www.scsi.ie/documents/get_lob?id=1235&field=file

€9

,23

5

€8

,77

0

€6

,82

5

€1

0,3

91 €8

,80

0

€5

,83

8

€0

€2,000

€4,000

€6,000

€8,000

€10,000

€12,000

Leinster Munster Connacht/Ulster

Pri

ce p

er

He

ctar

e

2010 2016

TWO

Figure 2.17 Average price per hectare of agricultural land (areas up to 50 acres), without

entitlements or a residence, 2012 - 2016

Figure 2.18 Average price per hectare of agricultural land (areas between 50 - 100 acres),

without entitlements or a residence, 2012 - 2016

Source: Society of Chartered Surveyors Ireland/Teagasc Land Market Review and Outlook 2016





Irish Farmers Journal Land Price Report 2016

The latest Irish Farmers Journal Land Price Report, published in March 2017 indicated that the average price

for land in Ireland decreased by 1.6% to €8,771 an acre in 2016. The national average was below €10,000 an

acre. The amount of land for sale only decreased slightly, however, - by 1.1% - to 73,778 acres. Cork saw the

largest area offered for sale, while Waterford was at the opposite end of the scale. The overall average size of

farms offered for sale last year was 46 acres. The editorial comments that “While a lot of land remained un-

sold in 2016, almost 34,000 acres did successfully sell last year, which clearly indicates that plenty of deals are

getting across the line, albeit at a slower pace.”

Louth was the most expensive county to buy land last year at €12,463/acre, followed by Dublin at €12,171/

acre, Kildare at €11,925/acre, Wexford at €11,729/acre and Meath at €11,465/acre. In contrast, Leitrim was

the least expensive at €4,560/acre followed by Roscommon at €5,144/acre, Mayo at €5,701/acre, Clare at

€5,865/acre and Sligo at €6,126/acre.

At a provincial level, Leinster had the highest average price at €10,432/acre, followed by Munster at €8,911/

acre, Ulster at €8,426/acre and Connacht at €5,754/acre.

In terms of volume, the 73,778 acres offered for sale in 2016 were only slightly down on 2015. Cork had by far

the most land offered for sale at 9,318 acres followed by Tipperary at 5,122 acres, Kildare at 4,576 and

Limerick at 4,359 acres.


Figure 2.19 Average price per hectare of agricultural land (areas over 100 acres), without

entitlements or a residence, 2012 - 2016




TWO

Land Rental

In Ireland, the area of agricultural land sold annually represents only a fraction of 1% of the total stock of land

that is farmed, with the sale of agricultural land in Ireland being very much the exception rather than the rule.

One of the consequences of the low volume of land sales is that farmers have to make use of the land rental

market if they wish to change the area of land they farm. Renting out land is a means by which the title to the

land can be retained but an income can be derived from the land by the owner if he or she is not in a position

to farm the land. From the perspective of those renting land, it is often the only means to increase their farm’s

land base. The land rental market can also be used to address problems which arise because of farm

fragmentation, such as where an out-farm is remote from the home farm.

The CSO Farm Structures Survey 2013 shows that almost 44,500 farms included rented land, with 4,900 farms

being 100% rented. Of those farms that rented in land, over half were involved in specialist beef production

and 20% were specialist dairying.

Figure 2.19 Number of Farms with land Rented-In, 2013

0

5,000

10,000

15,000

20,000

25,000

Specialist beef

production

Specialist dairying

Mixed grazing

livestock

Specialist sheep

Specialist tillage

Mixed crops and livestock

Other Mixed field crops

23,100

8,900

4,700 3,600

2,100 1,000 700 400

Farm

Nu

mb

ers



Of the 1,606 farms offered for sale in 2016, 1,199 (74.7%) were offered for sale privately. This confirms that

private treaty is still the preferred route in terms of method of sale and has grown again since 2015 (69.3%).

Note: 1 acre = 0.404686 hectares


2.11 INVESTMENTS, BORROWING AND INTEREST

Investment

Gross fixed capital formation or capital investment in agriculture decreased by 8% in 2016, reflecting more

negative market sentiment arising from lower commodity prices and uncertainty over Brexit. However the

period 2012 to 2016 has seen relatively stable levels of investment since the significant decrease in the period

2009/10, which can attributed to the financial crisis and the conclusion of the Farm Waste Management

Scheme at the end of 2008.

Table 2.6 Gross Fixed Capital Formation in Agriculture, 2007—2016 (€million)

Borrowings

Central bank data shows that (excluding Financial Intermediation and Property Related Activities) the Primary

Agriculture sector was the largest recipient of new lending to SMEs in 2016, totalling €743 million. This

represents 16% of total new lending to SMEs or 23% when Financial Intermediation and Property Related

Activities are excluded. These figures are consistent with trends dating back to March 2010 and demonstrate

a stable supply of lending to the Primary Agriculture sector.

Further analysis shows that new lending to Primary Agriculture accounts for 91% of the total, Forestry,

Logging, Mining and Quarrying 3%, and Fishing and Aquaculture 6%.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Farm Buildings €638.7 €1,306.0 €243.5 €155.2 €194.0 €161.1 €188.7 €207.7 €224.8 €226.8

Land Improvements €47.7 €41.1 €39.8 €47.0 €59.5 €36.0 €42.2 €46.5 €50.3 €50.8

Transport Equipment €129.2 €126.4 €117.9 €111.2 €94.8 €98.8 €102.9 €112.9 €123.4 €123.6

Agricultural machinery and Equipment €396.0 €351.4 €178.6 €155.6 €201.9 €312.0 €354.2 €374.5 €386.4 €402.5

Other equipment €10.9 €87.9 €27.0 €17.8 €30.3 €24.9 €41.8 €40.9 €34.9 €32.9

Breeding Stock -€28.4 €2.2 -€43.7 -€54.5 €19.1 €83.4 -€19.9 €1.0 €127.7 €34.9

Total €1,194.1 €1,915.0 €563.1 €432.3 €599.6 €716.2 €709.9 €783.5 €947.5 €871.5

Source: Central Statistics Office


TWO

Figure 2.20 New borrowings by Agriculture, Forestry and Fisheries SMEs, 2010 - 2016

Source: Central Bank of Ireland, Business Credit and Deposits 2017

Total outstanding borrowings in Primary Agriculture have been in a long term trend of decline as illustrated by

Figure 2.21 below. Total outstanding borrowings in agriculture peaked at €6,412 million in September 2008

and have since declined to €3,386 million at the end of 2016. This is indicative of the deleveraging that has

been occurring in the wider economy over roughly the same period where repayments have outstripped new

lending. Primary Agriculture accounts for 12% of the €28,108 million outstanding debt held by Irish SMEs, or

21% when Financial Intermediation and Property Related Activities are excluded.

Figure 2.21 Outstanding Borrowings to Primary Agriculture SMEs , 2010 - 2016

0

50

100

150

200

250

Mar

-10

Jun

-10

Sep

-10

De

c-1

0

Mar

-11

Jun

-11

Sep

-11

De

c-1

1

Mar

-12

Jun

-12

Sep

-12

De

c-1

2

Mar

-13

Jun

-13

Sep

-13

De

c-1

3

Mar

-14

Jun

-14

Sep

-14

De

c-1

4

Mar

-15

Jun

-15

Sep

-15

De

c-1

5

Mar

-16

Jun

-16

Sep

-16

De

c-1

6

Agriculture Forestry, Logging, Mining and Quarrying Fishing and Aquaculture

0

1,000

2,000

3,000

4,000

5,000

6,000

Mar

-10

Jun

-10

Sep

-10

De

c-1

0

Mar

-11

Jun

-11

Sep

-11

De

c-1

1

Mar

-12

Jun

-12

Sep

-12

De

c-1

2

Mar

-13

Jun

-13

Sep

-13

De

c-1

3

Mar

-14

Jun

-14

Sep

-14

De

c-1

4

Mar

-15

Jun

-15

Sep

-15

De

c-1

5

Mar

-16

Jun

-16

Sep

-16

De

c-1

6

Primary Industries Agriculture

Forestry, logging, mining and quarrying Fishing and aquaculture



https://www.centralbank.ie/statistics/data-and-analysis/credit-and-banking-statistics/business-credit-and-deposits




Figure 2.22 Interest Rates in Primary Agriculture

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

De

c-1

4

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

De

c-1

5

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

De

c-1

6Primary Agriculture - outstanding amounts Total - outstanding amounts

Primary Agriculture - new lending Total - new lending

Interest Rates – compared to other EU countries

Interest rates in Ireland are above Euro area averages according to Central Bank’s SME Market Report 2016,

H2. The average interest rate in Ireland over the latest six months is 2.3 percentage points higher than EA2

and 2.6 percentage points higher than EA1.

Central Bank of Ireland research has shown that SME interest rates are higher where SME default rates are

high, where bank competition is weak, where bank funding pressures are more pronounced and where the

macro economy is weaker.

Note: The Central Bank compares Ireland to two groups of countries: EA1 which comprises Austria, Belgium, Germany,

Finland, the Netherlands, and France and EA2 which is formed by Portugal, Italy, Spain and Greece.


Interest Rates

Although interest rates for the sector have been declining, they are higher than the average across all SME

sectors. Central Bank figures show:

The average rate on outstanding amounts in the sector at the end of 2016 was 4.33% (up from 4.29% in

2015). The average for all other SMEs was 3.18%: a difference of 1.15%.

The average rate for new lending in the sector at the end of 2016 was 5.25% (up from 5.05% in

2015).The average for all other SMEs was 4.19%: a difference of 1.06%.

Some of the difference may be attributable to the profile of the loans, as loans to the agriculture sector tend

to be lower in value and higher in volume.


TWO

Progress on the Agriculture Cashflow Support Loan Scheme

The SBCI have reported that, to the end of June 2017, there have been 3,672 loan drawdowns amounting to a

total of €117,308,197. This is an average loan amount of €31,947. Some 59% of the loans are for terms of 4

years or more. The participating banks have advised that all of the remaining €150m is committed and is in

the process of being drawn down.

SBCI: Agri Cashflow Support Loan Scheme

In recognition of the impact on cash flow for farmers caused by the change in the

sterling exchange rate and lower commodity prices in some agriculture sectors, the

“Agriculture Cashflow Support Loan Scheme” was developed by the Department in

co-operation with the Strategic Banking Corporation of Ireland (SBCI), making €150

million available to farmers at interest rates of 2.95%.

Distributed and administered through AIB, Bank of Ireland and Ulster Bank, the

Scheme provides farmers with a low cost, flexible source of working capital and will

allow them to pay down more expensive forms of short-term debt, ensuring the

ongoing financial sustainability of viable farming enterprises.

DAFM’s contribution of €25million includes €11 million from the EU’s ‘exceptional

adjustment aid for milk and other livestock farmers’ and €14 million in national

funding. SBCI uses the €25 million of funding provided by DAFM to leverage the total

amount of €150 million and, along with the European Investment Fund’s

‘COSME’ (the EU programme for the Competitiveness of Enterprises and SMEs), is

providing the guarantee required to underpin the loan’s flexibility and lower the

cost of the loans.

Non-performing loans

Central Bank figures show that the ‘primary industries’ sector has:

The lowest share of loans switching from performing to default (approximately 1%)

The largest share of loans switching from default to performing (approximately 7%).



Table 2.7 Summary of Loan terms, numbers and size

Loan Term Totals € % of Funds No. of Loans Average Loan Size €

1 year € 30,370,916 26% 1,115 € 27,238

2 years € 10,326,163 9% 508 € 20,327

3 years € 7,786,651 7% 375 € 20,764

4 years € 14,259,538 12% 453 € 31,478

5 years € 32,337,715 27% 852 € 37,955

6 years € 22,227,214 19% 369 € 60,236

TOTALS € 117,308,196 100% 3,672 € 31,947

Summary

> 4 years € 68,824,467 59% 1,674 € 43,223

2-3 years € 18,112,814 15% 883 € 20,546

1 year € 30,370,916 26% 1,115 € 27,238

Sector Totals € % of funds No. of Loans Average Loan size €

Dairy € 49,893,145 43% 1,358 € 36,740

Beef € 48,653,826 41% 1,788 € 27,211

Sheep € 2,597,000 2% 127 € 20,449

Pigs € 1,509,000 1% 18 € 83,833

Tillage € 7,739,465 7% 168 € 46,068

Horticulture € 878,500 1% 11 € 79,864

Other € 6,037,261 5% 202 € 29,887

Total € 117,308,197 100% 3,672 € 31,947

Summary

Livestock & Dairy € 102,652,971 88% 3,291 € 168,234

Non-Livestock € 14,655,226 12% 381 € 155,819

Table 2.8 Summary of loans by Sector

Table 2.9 Summary of loans by Region

Region Totals € % of Funds

Border € 16,849,850 14%

Midland € 13,187,568 11%

West € 13,208,528 11%

Dublin € 285,000 0%

Mid-East € 10,116,286 9%

Mid-West € 18,374,142 16%

South-East € 19,534,871 17%

South-West € 25,751,952 22%

Total € 117,308,196 100%


TWO

2.12 WOMEN IN AGRICULTURE

National Strategy for Women and Girls 2017 - 2020

The National Strategy for Women and Girls was launched in April 2017 by the Department of Justice and

Equality following public consultations in 2016. Six high level goals were identified to ensure the success of

the strategy’s vision to work toward ‘an Ireland where all women enjoy equality with men and can achieve

their full potential, while enjoying a safe and fulfilling life’.

The Department of Agriculture, Food and the Marine was closely involved with the formation of this

document and six action points were identified under two of the overarching objectives for implementation

by the Department.

Action Point 1.24

Provide support for rural female entrepreneurs at start-up stage e.g. through the ‘ACORNS’

programme.

Action Point 1.38

Clarify any perceived taxation barriers to registering farms in joint ownership, and publicise outcomes.

Action Point 1.39

Improve statistics and reporting on women’s involvement in the agri-food sector.

Action Point 1.45

Ensure that gender equality and the empowerment of women and girls is prioritised in Ireland’s over-

seas development assistance programme, particularly in relation to agriculture and nutrition.

Action Point 4.3

Encourage female involvement in decision-making and leadership in all parts of the agri-food sector,

especially through mentoring and positive case studies.

Summary

Border, Midlands and West € 43,245,946 37%

Non-BMW € 74,062,251 63%


Ireland

Data obtained from the DAFM’s client database for 2015 was used to analyse the role that women play in Irish

agriculture. This was combined with data on farmers who received a Basic Payment Scheme in 2015 and the

amount of eligible hectares attributed to each herd number receiving a Single Farm Payment. A total of

115,664 individually registered farms which received €991 million in Basic Payment Scheme and claimed 3.92

million hectares were accounted for.

Figure 2.24 shows the age profile of Irish male and female farmers in 2015. Only 12% of the 115,664 farmers

were women and they were slightly older than their male counterparts, with an average age of 62 compared

to 57 for men. The majority of both male and female farm owners are in the 35 to 64 age group, however,

44% (6,211) of female sole owners of farms were over 65, with 31% of these over 80 years of age, which

would suggest that some received the farm when they were widowed. In comparison only 29% of total male

farmers were over 65.

- 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Over 65

55-64

45-54

35-44

Under 35

6,211

3,337

2,719

1,381

471

29,873

25,481

24,539

15,734

5,918

Female Male

Figure 2.24 Farmers in receipt of Basic Payment Scheme payments by Gender, 2015


If we break down the amount of claimed hectares by gender, women were the sole owners of just 9%

(378,885 ha) of the total land eligible for Basic Payment Scheme with 41% (149,476 ha) of this land owned by

women over 65.



TWO

Figure 2.25 Land Eligible for Basic Payment Scheme by Gender, 2015


Figure 2.26 Basic Payment Scheme payment (€m) by Gender, 2015



Europe

Figure 2.25 highlights that women received just 9% of the €1 billion of Basic Farm payment captured by the

exercise on the 2015 data. Data from a publication on direct payments, broken down by age and gender, from

the Ministry for Agriculture in Spain show that 36% of Spanish farmers were women and that they received

27% of total Basic Payment Scheme Payments. This publication also shows results for the different regions in

Spain and in the Galicia region, which has very similar agriculture characteristics to Ireland in that it is made

up of mainly beef suckler and dairy farms, 58% of the farmers are women and they receive 44% of total

payments.


2013 data from Eurostat, on the holders of farms across the European Union shows that the total proportion

of female farmers in the EU is 30%, though this masks wide variations across the continent. The countries

with the highest proportion of female farm holders are based in the Baltic region e.g. 48% of Lithuania’s

170,000 farmers are female; At the other end of the scale, just 6% of sole farmholders in the Netherlands are

female. According to the data, the corresponding figures for Ireland is 11.7%.

Figure 2.27 Farm Holders by Gender in EU-28, 2013

Source: Eurostat, Farm Labour Force data


http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=ef_olfreg&lang=en

TWO

ACORNS (Accelerating the Creation of Rural Nascent Start-ups)

The report of the Commission for the Economic Development of Rural Areas (CEDRA) con-

tained a recommendation that a Rural Innovation and Development Fund should be devel-

oped to support “innovative, small scale pilot initiatives that explore the diverse range of po-

tential identified through the CEDRA process”. National research also highlighted that female

entrepreneurship rates were half that of their male counterparts.

To improve these gender statistics, and to encourage a stronger level of enterprise develop-

ment in rural areas, the Department established the ACORNS programme under its Rural In-

novation and Development Fund.

ACORNS provides early stage rural female entrepreneurs with the knowledge, support and

networking opportunities to advance the development of their businesses. There is no charge

for successful participants.

Over 100 female entrepreneurs have taken part between 2015 and 2016. Past participants

have testified to the difference this programme has made both to themselves and to their

businesses with increased sales, exports and job creation, in addition to the valuable connec-

tions they have made through broadening their support network. The progress of those who

completed the first year of the programme in 2016 is impressive.

Combined sales increased by just over €2 million over the 15 months to the end of 2016

to €4 million (103%)

The number of exporters increased to 11. One in four of the ACORNS pilot participants

are now exporting.

Their combined employment increased over the 15 months by just over a third to 107.

ACORNS is based on a clear understanding that entrepreneurs learn best from each other and

the initiative is focussed on peer support and collaborative learning. Participants work in in-

teractive round table sessions that are facilitated by other female entrepreneurs who have

started and successfully grown businesses in rural Ireland. Acting in a voluntary capacity,

these ‘Lead Entrepreneurs’ share their insights and experience with the group and support the

participants to examine and address the issues and challenges they face in progressing their

businesses.

Profiles for previous participants are available at http://acorns.ie/participants/


http://acorns.ie/participants/


3.1 OVERVIEW

Table 3.1 outlines the latest information for outputs and inputs in agriculture for 2016 based on the CSO’s

Preliminary Estimates of Output, Input and Income in Agriculture, 2016. Between 2015 and 2016, gross value

added at basic prices rose to €2.37 billion. Cattle and calves remained the largest livestock category

comprising 32% of gross output, with milk accounting for another 25%.

In respect of intermediate consumption the largest category animal feed constituted 27% of the total.

Table 3.1 Estimated Output, Input and Income in Agricuture, 2016 - Value, Volume and Price

Value % Change 2016 over 2015 Share of Gross Outputs/Inputs

€m Value Volume Price %

Gross output at producer prices 7,048.8 -1.2% 2.64% -3.6% 100%

Cattle and Calves 2,282.8 -3.2% 3.6% -6.8% 32%

Pigs 467.6 2.0% -0.6% 2.5% 7%

Sheep and Lambs 255.6 4.6% 5.9% -1.4% 4%

Poultry 156.7 10.3% 12.2% -2.0% 2%

Milk 1,792.3 -4.2% 5.5% -8.4% 25%

Cereals 236.1 -10.1% -3.4% -5.9% 3%

Potatoes 138.4 12.0% 8.3% 6.4% 2%

Fresh Vegetables and Fruit 270.5 n/a n/a n/a 4%

Forage Plants 1,048.3 3.9% -2.4% 6.7% 15%

Other 400.5 n/a n/a n/a 6%

Intermediate Consumption (Inputs) 5,023.1 -0.1% 0.4% -0.8% 100%

Animal Feed 1,354.2 2.8% 4.1% -1.4% 27%

Fertilisers 503.2 -11.0% -0.8% -10.5% 10%

Energy and Lubricants 369.4 -7.7% 0.2% -7.9% 7%

Maintenance and Repairs 429.8 -0.3% 0.0% -0.3% 9%

Forage Plants 1,045.3 3.9% -2.4% 6.7% 21%

Contract Work 348.0 0.0% 0.0% 0.0% 7%

Others 973.1 n/a n/a n/a 19%

Gross value added at basic prices 2376.6 0.1% 10.4% -8.6% n/a



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Table 3.2 Estimated Value (€M) and Volume (000’s) of stock changes on Farms 2014 - 2016


2015 2016 2

Value1 Volume1 Value1 Volume1

Cattle 140.6 179.2 158.3 191.2

Sheep -0.1 -0.1 11.1 113.4

Pigs -1.2 -31.1 3.3 53.3

Poultry 0.0 0.0 0.0 0.0

Crops -2.8 -32.9 3.3 -18.5

Total n/a 115.1 n/a 339.4 1 Volume of Livestock is in heads (000s), volume of crops is in tonnes (000s)

2 Final Estimate

Long term trends in livestock numbers are outlined in Figure 3.1 based on the CSO’s December 2016 Livestock

Survey. The results of this survey show an increase of 3% in total cattle figures between December 2015 and

2016. Sheep increased by 113,400 (3.4%) to 3,438,200 while total pigs increased to 1,527,800 between De-

cember 2015 and 2016 (3.6%).

Figure 3.1 Livestock Numbers (000’s), 2015 - 2016

0.0

1000.0

2000.0

3000.0

4000.0

5000.0

6000.0

7000.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Total cattle Total sheep Total pigs

Source: CSO Livestock Survey – December 2016


http://www.cso.ie/en/releasesandpublications/er/lsd/livestocksurveydecember2016/

3.2 DAIRY

General Market Situation Ireland and EU 2016

Global, EU and Irish dairy markets remained fragile for the first half of 2016 with global demand and supply

imbalances, particularly purchases of dairy products from China, serving to deflate prices at EU and Irish level.

In this context market developments across the EU continued to be closely monitored throughout 2016. The

Russian ban on the importation of certain EU agricultural products remained in place throughout 2016, having

been extended by Russian Authorities.

Measures to assist the dairy sector were introduced in March 2016, building on efforts introduced in 2015.

Among the main elements of these packages were the extension and broadening of more ‘traditional’ support

measures such as intervention and aids to private storage, as well as more flexible, targeted, direct aid allo-

cated to Member States to spend in accordance with their national circumstances.

In July 2016, agreement was reached at Council on a further €500m package of measures to assist the dairy

sector which comprised of two key elements, an EU-wide production reduction scheme with funding of

€150m and an “Exceptional Adjustment Aid” fund of €350m for allocation to Member States based on individ-

ual envelopes.

The first component was a €150 million EU-wide measure to compensate farmers for reducing their milk out-

put in the final quarter of 2016 compared to the same period in 2015 (at a rate of 14c/kg). In Phase 1 over

99% of available resources in terms of finances and tonnages were applied for. In Ireland, this amounted to

approximately 74.2 million kilos from approaching 4,500 producers.

Terms of Trade

Agricultural output prices decreased by 4.87% in 2016 relative to a decrease of 3.46% in input prices. These

prices developments equated to a negative movement in the terms of trade index for farmers of -1.4% in

2016.

Table 3.3 Terms of Trade, 2014 - 2016

Base 2010 = 100 2014 2015 2016 Change 2015/16

Output 120.66 116 110.35 -4.87%

Input 114.62 112.15 108.27 -3.46%

Terms of Trade 105.30 103.40 101.90 -1.45%

Source: CSO - Agricultural Input and Output Price Indices



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The second element of the EU July 2016 package was a €350 million fund that was allocated to Member

States in the form of national envelopes, which Member States could use in accordance with their domestic

circumstances. Whilst eligibility criteria applied, Member States were afforded a large degree of flexibility

in terms of the measures to be adopted. In Ireland, the “Agriculture Cashflow Support Loan Scheme” was

developed by the Department in co-operation with the Strategic Banking Corporation of Ireland (SBCI),

making €150 million available to farmers at interest rates of 2.95%.

The second half of 2016 saw an improvement in market conditions at global, EU and Irish levels, with

improved producer and market returns, with an overall assessment of cautious optimism appropriate in

respect of dairy market prospects for 2017.

Agri-food export statistics from the Central Statistics Office indicate that a rise in Irish milk output and a

recovery in international demand as the year progressed combined to leave the value of Irish dairy produce

exports for the year 3% higher than 2015 at €3,950m.


Production

2016 was the Irish dairy sector’s second year of operation under a quota free environment. In total Ireland

produced approximately 6.85 million tonnes of raw milk in 2016. This represented an increase of 4% approx

on 2015 and 18% on 2014, the last year where a quota regime was in operation. Ireland’s production

represented circa 4.5% of the total EU milk pool of over 152 million tonnes in 2016.

Figure 3.2 Raw Milk Production by EU Country, 2016

Source: Eurostat

http://ec.europa.eu/eurostat/statistics-explained/index.php/Milk_and_milk_product_statistics


Commensurate with this increase in raw milk, there was an overall increase also in the production of certain dairy commodity products, such as butter and powders. Table 3.3 illustrates overall trends versus 2015.

Table 3.4 Dairy Commodities Production 2015 – 2016

2015 2016

% Change 2015/2016 000's Tonnes 000's Tonnes

SMP 99.1 117.7 18.8%

Butter 187.5 198.7 6.0%

Cheese 207.1 167.8 -19.0%

WMP 35.4 43.5 22.9%

Source: CSO Production of Dairy Products and DAFM

Prices, 2016

Overall, raw milk prices showed an improvement as the year progressed, the Irish market having remained

fragile through the important peak season earlier in 2016.

Figure 3.3 Raw Milk Prices Ireland, 2010 - 2016 (Prices € per litre)


€-

€0.05

€0.10

€0.15

€0.20

€0.25

€0.30

€0.35

€0.40

€0.45

€0.50

2010 2011 2012 2013 2014 2015 2016


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EU markets for key dairy commodities also improved as the year progressed, SMP and butter prices for 2016

ended the year up 43% and 21% respectively compared to where things stood at the start of the year.

Table 3.5 Monthly comparison Ireland vs. EU Raw Milk Prices, 2015 - 2016 (Prices € per litre)

Month Ireland EU Difference Ireland/

EU

Jan-15 € 0.34 € 0.32 € 0.02

Feb-15 € 0.33 € 0.32 € 0.01

Mar-15 € 0.30 € 0.32 -€ 0.02

Apr-15 € 0.31 € 0.31 -€ 0.01

May-15 € 0.29 € 0.31 -€ 0.02

Jun-15 € 0.28 € 0.30 -€ 0.02

Jul-15 € 0.27 € 0.30 -€ 0.03

Aug-15 € 0.28 € 0.30 -€ 0.02

Sep-15 € 0.29 € 0.30 -€ 0.01

Oct-15 € 0.31 € 0.31 € 0.00

Nov-15 € 0.31 € 0.31 € 0.00

Dec-15 € 0.29 € 0.30 -€ 0.01

Jan-16 € 0.28 € 0.30 -€ 0.01

Feb-16 € 0.28 € 0.29 -€ 0.02

Mar-16 € 0.24 € 0.28 -€ 0.04

Apr-16 € 0.24 € 0.27 -€ 0.03

May-16 € 0.24 € 0.26 -€ 0.02

Jun-16 € 0.24 € 0.26 -€ 0.02

Jul-16 € 0.24 € 0.26 -€ 0.01

Aug-16 € 0.27 € 0.26 € 0.01

Sep-16 € 0.30 € 0.28 € 0.02

Oct-16 € 0.33 € 0.30 € 0.03

Nov-16 € 0.36 € 0.32 € 0.04

Dec-16 € 0.35 € 0.33 € 0.02




Dairy - Ireland Outlook for 2017

The long-term fundamentals of the global dairy market are strong, with growing global demand

projected from fast developing countries with increasing middle classes and more westernised

diets. Whilst significant challenges continued throughout 2016, there is confidence that the Irish

dairy sector is well placed to gain from the opportunity presented by expanding global demand

whilst simultaneously addressing key challenges with a particular focus on the issues of Brexit and

price volatility. More recent price trends in the dairy sector have given tentative signs of green

shoots in the global, EU and Irish dairy market. In general the outlook for the sector must remain

cautiously optimistic, with the resolve to engage in measures to mitigate the effects of specific

issues such as Brexit and price volatility.

Dairy - EU Outlook for 2017 (and beyond)

World dairy markets have been subject to acute volatility in the recent past, as the introduc-

tion of the Russian import ban and the sharp decrease in Chinese purchases coincided with

imbalances in world supply and demand. EU Commission estimates suggest that during the

next decade, global and EU production growth is expected to be more moderate, driven by a

sustained increase in world demand, albeit at a slower pace than in the past decade.

Further short-term imbalances between global supply and demand cannot be excluded and

could contribute to price volatility, as observed in the EU since 2007.

After more than 30 years in a production quota environment, market fundamentals will the

main drivers of EU supply developments. Environmental constraints will also play role in the

future, limiting production development in certain areas of Europe and globally. Therefore,

EU Commission expectations are for a more moderate rise in EU milk production in the next

decade compared to recent years.

The longer term expectation is for the EU to become the world’s top exporter of dairy prod-

ucts by 2026, just ahead of New Zealand. However, despite the expected strong increase in

exports, by 2026 more than 85 % of EU milk and dairy products will be consumed within the

EU. The decrease in fresh milk consumption is expected to continue, but the use of cheese

and butter by households and for processing is expected to increase further, which, together

with expected population growth, would support consumption.


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3.3 CATTLE


2016 was a year of volatility, with deadweight prices rising from January to June and then dropping sharply

though the end of the year saw a minor upswing. Much of this downturn from June onwards was attributed to

the Brexit referendum and the consequential weakening of sterling. The year saw Ireland make substantial

progress in opening new third country markets to exports of Irish beef, with access secured to Canada, Israel

and New Zealand, and progress made towards opening China, South Korea and Vietnam. Ireland also gained

approval for the export of beef intended for grinding to the United States.

The estimated value of beef exports in 2016, including offals, was €2,262 million, which is a small increase of

2%, on the 2015 figure. In volume terms beef exports increased by 8% to 526,000 tonnes. The United King-

dom remains the single largest export market, making up 50% of volume trade for Irish producers, (265,000

tonnes) worth approximately €1.1bn in value terms. This represents a decline compared to 2015 that can

largely be attributed to currency fluctuations. Year-on-year trade in volume to continental Europe rose by

2.7% to 197,000 tonnes, however the value of said exports did not fluctuate by as wide a margin due to Irish

prices being down on 2015 and so they were worth roughly €1bn as in 2015. As Ireland exports 90% of the

beef we produce, viable export markets remain essential to the sector and efforts to expand our available

markets will continue to be a major focus for the Department going forward.

In relation to the live trade of cattle, exports declined by 37,000 head, or 21%, largely driven by a weaker

trade to Northern Ireland and the Netherlands. However, certain markets performed strongly such as Spain,

where exports were up 25% on 2015, and the sector received a boost towards the end of the year with almost

20,000 head of cattle being exported to Turkey over the course of the final three months of 2016, as well as

live exports to Libya recommencing.

The output value of the cattle sector in 2016 was €2,282.7 million, falling by 3.2% between 2015 and 2016;

however this sector has increased its value by €145 million (6.8%) since 2012.


Table 3.6 Output Value (€m) and Numbers (000’s) of Cattle and Calves, 2015 - 2016

2015 2016 2

Value Number Value Number

Live Exports 113.09 181 72.87 143

Export Slaughterings +Other from 2013 2,106.94 1,665 2050.35 1,744

Levies 14.96 15.32

Total Disposals 2,234.99 1,846 2138.54 1,887


Cattle Prices

The price an Irish farmer receives for an R3 steer grew steadily in the first half of 2016 to reach a peak of

401c/kg excluding VAT just before the Brexit vote, after which it fell sharply, reaching a low of 353c/kg in early

November. After this, steady gains were made and the price at year’s end was 362c/kg.

The Irish yearly average price for 2016 was 377c/kg, just over the EU15 average of 375c/kg. German prices

rose strongly throughout the second half of the year, while French prices saw small but steady gains from late

Summer onwards.

Figure 3.4 Steer (R3) Prices, 2015 - 2016


€3.20

€3.40

€3.60

€3.80

€4.00

€4.20

€4.40

€4.60

€p

er

KG

2015 2016

2015 2016 2

Value1 Number Value1 Number

Imports 17.56 17 14.07 15

Changes in Stocks 140.60 179 158.30

Total 2,358.02 2,008 2282.77 2,064 1 Values shown are after deductions for transport costs 2 Final Estimate

Source: CSO Output, Input and Income Preliminary Estimate, 2016


Slaughterings, 2016

1,617,919 cattle were slaughtered at Department-approved plants throughout 2016. This represented an

increase of about 77,000 head, or 5% when compared to 2015. This can be broken down as :

Steers 38%

Young Bulls 12%

Bulls 2%

Heifers 26%

Cows 22%.

These figures show substantial rises in output of young bulls, 25%, and cows, 12%, coupled with a small rise in

heifers, while steers remained largely similar.

European Union total beef output rose by approximately 4%, consumption remained steady and exports saw

a substantial jump of 20%, largely due to growth in trade to Africa, Turkey and other Asian markets.

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Figure 3.5 Cattle Slaughterings at Meat Export Premises, 2015 - 2016


0

100000

200000

300000

400000

500000

600000

700000

Steers Cows Heifers Young Bulls Mature Bulls

2015 2016


Cattle - EU Outlook for 2017

Continued growth in EU beef production is expected this year, with France, Ireland and Spain all

expected to increase their output, and Germany and the UK projected to slow.

Consumption should hold steady at around 6.75m tonnes, with growth expected in Germany,

Spain, The Netherlands, and Nordic countries. It is hoped Turkey can continue its high levels of

imports of EU beef and live cattle. As always, consumer spending levels will be the major driver of

demand across the European Union.

Cattle - Ireland Outlook for 2017

It can be reasonably expected that some difficulties in the sector will remain in 2017. The uncer-

tainty from Brexit could trigger further currency fluctuations. In addition a projected extra

100,000 – 120,000 head of cattle for slaughter will pose challenges to the sector, with much of

this extra supply expected to come to factory in the early part of the year. Average carcass

weight is expected to remain steady, and projections show approximately 565,000 tonnes of

beef should be available for export, a rise of 6% on 2016.

It is anticipated that increased opportunities for live exporters in the North African and Middle

Eastern markets will assist in dealing with some of the market difficulties in 2017. Increased

transport capacity for live exports is also expected to come on line at some point over the

course of the year.

Opportunities for new and expanding third country markets for beef will be crucial to the devel-

opment of the sector and it is hoped that a number of such markets in North Africa, the Middle

East and possibly Asia can be secured to offer new outlets for exporters.


3.4 SHEEP AND LAMBS


Irish sheepmeat exports were strong in 2016, with lower carcass weights offsetting a higher supply figure. The

value of total exports in 2016 are estimated to have increased by about 13.7% to €275m, with the UK and

France accounting for 55% of Irish exports with export tonnage increasing 13% to 32,000 tonnes. Germany,

Belgium, Sweden and Denmark were the other main EU markets, with Switzerland and Hong Kong forming the

main third country markets. Prices declined slightly while supply rose. Islamic festivals continue to exert a

strong influence upon export market demand, while domestic consumption fell to just under 15,000 tonnes a

drop of over 5%.

The EU as a single market is very much influenced by imports of lamb, especially from New Zealand and

Australia and in 2016 imports were up 3% on 2015 which can have a bearing on the prices Irish farmers re-

ceive for their animals.

Minister Creed launched the Sheep Welfare Scheme in December, with a budget of some €25m. The scheme,

which had been included in the programme for government, provides a support to sheep farmers of €10 per

ewe for undertaking actions which make a positive contribution to flock welfare.

Overall, Irish sheepmeat exports were 13% higher at €275 million. 46,100 head of sheep were exported live

from Ireland in 2016, a substantial increase of 51% on 2015 figures.

The output value of the sheep and lamb sector in 2016 was €255.6 million, an increase of 4.6% since 2015 and

10.3% on 2014.

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2015 2016 2

Value1 Number Value1 Number

Live Exports 3.15 32 4.68 48

Export Slaughterings + Other from 2013 273.71 2,832 281.51 2,892

Other Slaughterings

Total Disposals 276.86 2,864 286.19 2,940

Imports 32.43 332 41.63 431

Changes in Stocks -0.15 0 11.06 113

Total 244.28 2,532 255.61 2,622 1 Values shown are after deductions for transport costs 2 Final Estimate


Table 3.7 Output Value (€m) and Numbers (000’s) of Sheep and Lambs, 2015 - 2016

€400.00

€420.00

€440.00

€460.00

€480.00

€500.00

€520.00

€540.00

€560.00

€580.00

2015 2016


Sheep Prices

Prices followed a similar trajectory to 2015, with a steady increase from January reaching its peak around

Easter, declining from then until June, and remaining relatively stable throughout the second half of the year.

Prices finished at 90% of the EU average and at €430/100kg, they were 3% lower over the course of the year

than in 2015. The Irish yearly average stood at 104% of the comparable British price, and at 111% of the

Northern Irish.


Slaughterings

In 2016, total Irish sheep slaughterings rose by approximately 3% to stand at 2.67m head for the full year.

Figures show that hogget slaughterings rose by 7%, ewes and rams by 26%, while spring lambs declined by

about 3%. Overall sheepmeat production rose by 2% to about 60,000 tonnes because of higher carcass

weights.

Similar to 2015, slaughterings grew slowly but steadily before peaking in September and declining thereafter.

Figure 3.6 Sheepmeat Prices, 2015 - 2016


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Figure 3.7 Sheep Slaughterings, 2015—2016


Ireland Outlook for 2017

Hogget supplies are expected to remain relatively high in the early part of the year. France and the

UK will continue to be the largest export markets for Irish sheepmeat producers, and Easter and

Islamic festivals, such as Eid, will increase market demand sharply in the weeks leading up to them.

European buyers increasingly perceive Irish lamb as high-end product, so it can be expected that

Ireland will continue to establish a premium position for itself in continental markets.

EU Outlook for 2017

EU sheepmeat supplies are expected to increase again this year. If, as is expected, production drops

by 6% in New Zealand, this should prove helpful to price levels in Europe. Increasing demand from

the Middle East is a bright spot on the horizon, though geopolitical factors must always be factored

when discussing the potential of these markets. As with all exports, trade with the UK is expected to

be affected if sharp currency fluctuations occur as they did in 2016.

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2015 2016



3.5 PIGMEAT


The output value of the pigmeat sector was €467.6 million in 2016, an increase of 2% since 2015.

While feed costs improved in late 2016, the ongoing challenges in respect of non-feed costs combined to

keep margins under pressure. Pig prices also improved in late 2016, rising sharply in the third quarter, but

despite that there is still an overhang on some farms as a result of increased merchant credit built up during

the period of poor pig prices and high feed prices.

Latest statistics from the CSO Pig Survey in June 2016 indicate that the number of breeding pigs was up 0.4%,

while non-breeding pig numbers were up 4.1% in the same period. Domestic output increased by 3%,

curtailed to some extent by some reduction in carcase weights, however this was offset by an increase in

prices of almost 2% for the year.

Irish pigmeat exports were 9% higher than 2015 at €730 million. There was a decline in exports to the UK due

to unfavourable exchange rates post Brexit which led to a 5% drop in trade. Exports of Irish pigmeat to Inter-

national markets however grew by 20% driven by higher demand from Asia, particularly China which remains

the second most important market for Irish pigmeat with exports exceeding 70,000 tonnes.

.

Retail sales of pigmeat on the Irish market were stronger for all categories in 2016.

Table 3.8 Output Value (€m) and Numbers (000’s) of PIgs, 2015 - 2016

2015 2016 2

Value1 Nos. Value1 Nos.

Live Exports 74.36 640 58.70 492

Export Slaughterings 386.80 3,226 407.09 3,317

Total disposals 461.17 3,866 465.79 3,809

Imports 1.67 15 1.48 13

Changes in stock -1.15 -31 3.35 53

Total 458.35 3,820 467.65 3,849

1 Values shown are after deductions for transport costs

2 Final Estimate



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Pigmeat Prices 2016

Pig prices continued their downward trend from 2015 into 2016, hitting a five year low of €132.27/100kgs.

Prices began to regain ground from April onwards, peaking at €160.04/100kgs by week 40, an increase of over

20%. This contrast with the same period in 2015 where there was a €20 decrease, resulting in 2015 year end

prices falling to their lowest levels in five years at €135.67. Strong International demand led to an improvement

in the market environment for Irish pigmeat and the consequent raise in producer prices.

The average price during 2016 was €146.75 /100kgs, c. €3.78/100 kgs higher than the average for 2015. Prices

in week 52 were €154.66, €18.99/100kgs ahead of 2015 levels, an increase of 14%, and 7.8% above levels

achieved in December 2014.

The EU average price at the beginning of 2016 was quite weak at €125.95/100kgs, however gained steadily un-

til it reached €168.05 in September. The EU average at year end was €149.08/100kgs. Irish prices began the

year higher than the EU average and continued that trend until early June. Irish prices regained their advantage

again in October and maintained this until year end. The result of this was that Irish prices ended 2016 at 3%

above the EU average.

€120.00

€125.00

€130.00

€135.00

€140.00

€145.00

€150.00

€155.00

€160.00

€165.00

2015 2016

Figure 3.8 Pigmeat Prices, 2015—2016



Slaughterings

Approximately 3.25m pigs were slaughtered in export-approved plants during 2016. This equates to an increase

of approximately 3.1% compared to 2015. Approximately 93,000 sows are included in this 2016 figure, an 11%

decrease from 2015.

Production continued to accelerate on the previous year and ended up on average 3.1% ahead.


Approximately 93,000 sows are included in this 2016 figure, an 11% decrease from 2015. The export of live pigs

to Northern Ireland (NI) is estimated to have fallen by over 17% during 2016 which continues the downward

trend in recent years. Since 2012 the number of pigs exported to NI has decreased annually by an estimated

200,000 pigs.

220000230000240000250000260000270000280000290000300000

2015 2016

Figure 3.9 Pigmeat Slaughterings, 2015—2016



Any growth in Irish production in 2017 is expected to be modest. Assuming all other factors are

unchanged, export availability in 2017 is expected to be maintained at 2016 levels. A prolonged

period of uncertainty around Brexit will continue to determine the competitiveness of Irish pigmeat

produce in the UK. China’s pigmeat importation levels are expected to remain similar to 2016 which

is good news for exporting slaughter plants. However much will depend on Chinese domestic

production, competition from global exporters and exchange rate fluctuations.

EU Outlook for 2017

Early indications suggest that market prospects for the EU pork market in 2017 are mixed. A modest

decrease in EU output is projected on the back of a decrease in the breeding herd in major

producing countries such as Spain. Looking ahead, the tight supply of EU slaughter pigs in the latter

part of 2016 is expected to continue well into 2017, which should provide a strong pig price for the

first half of the year. However the ongoing absence of the Russian market combined with the

anticipated easing of demand from some Asian countries could have a negative impact on trade.


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3.6 POULTRY


Poultry meat has long been seen as a value for money food and this has underscored an increase in demand,

particularly in recent years. However stronger supplies across the EU and lower prices meant a challenging

environment for the poultry sector in 2016.

Irish production hit record levels in 2016, up over 10% on 2015 levels. Retail sales of fresh and chilled poultry

increased by approximately 8% on the Irish market in 2016 compared to the previous year, most of this

increase was attributable to chicken.

EU poultry production is estimated to have increased by about 3% in 2016 with most of this evident in broiler

and turkey output. Imports into the EU were around 2% higher reflecting increased shipments from Brazil and

Thailand, however this was counterbalanced by increased exports to South Africa and Asian markets. Lower

feed costs reduced input costs, however this was offset by a drop in broiler prices of approximately 4%

compared to the previous year.

The value of Irish poultry exports in 2016 decreased by 20% to an estimated €256 million compared to €320

million in 2015, driven by lower export prices accompanied by unfavourable exchange rates in our key export

markets.

Exports to the UK decreased by some 20% to approximately €217 million in 2016. Despite stronger export

volumes, the value of exports to other EU markets was approximately €20 million, a decrease of around 28%

in value terms due to lower unit prices. The main markets were France and the Netherlands particularly for

frozen and processed product. Some growth was recorded in trade with Spain albeit from a low base.


Table 3.9 Output Value (€m) and Numbers (000’s) of Poultry, 2015 - 2016

2015 2016 1

Value Number Value Number

Poultry 142.0 78,691 156.7 91,658

1 Final Estimate



Poultry Prices, 2016

Prices remained steady throughout 2016. Poultry is normally reared under contract to processors, for a

pre-agreed price, and therefore poultry producers are not subject to the same price fluctuations as other

farmers. EU broiler prices were on average 4% lower in 2016 than the previous year.

Slaughterings

Irish production levels hit record levels in 2016, with almost 92 million birds slaughtered in export-approved

plants. Production for 2016 increased by over 10% compared to 2015, with most of the increase evident in

broiler and duck production.

Figure 3.10 Poultry Slaughterings, 2015—2016

5000000

5500000

6000000

6500000

7000000

7500000

8000000

8500000

9000000

9500000

2015 2016



While the outlook for the poultry sector is positive, the sector continues to face challenges. Feed

ingredient supplies are good at present, therefore feed prices are expected to remain stable this

year, but these still compose a significant cost for producers. These, combined with energy costs

and significant pressure from imports particularly for the service sector, continue to present

difficulties for producers. Overall, Irish poultry production is forecast to remain stable during 2017,

with no significant change expected in the short term, however the risk of avian influenza currently

poses a challenge to the industry.


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EU Outlook for 2017

EU production is forecast to rise by 1%, driven by growth in Poland, Spain and the UK. Environmental

constraints are expected to curtail production in the Netherlands and Germany for 2017. However,

avian influenza currently poses a risk to the entire poultry industry and as such its impact on supply,

trade and consumer demand is difficult to predict.

3.7 CEREALS

General Market Situation Ireland and EU 2016.

Total area sown to cereals within the EU28 member states decreased by slightly less than 1% to 56.9 million

hectares with the main decrease in sowings attributed to maize. In Ireland the area sown fell 5% to 277,000

hectares with a big shift from spring crops to winter crops. The overall EU cereal usable production for

2016/2017 is currently forecast at 295 million tonnes, down 5% on last year. Common wheat accounts for 134

million tonnes (45% of all cereals), Barley 59 million tonnes and Maize 60 million tonnes.

2016 proved to be another challenging year for Ireland’s grain industry with flat prices and poor harvesting

conditions in parts of the country. A new scheme, the Agriculture Cash flow Support Loan Scheme, was

introduced to assist farmers experiencing financial difficulties, and EU approval was secured to extend the

Targeted Agricultural Modernisation Scheme (TAMS) to include the tillage sector.

The CSO estimate of the output value of cereals in 2016 is €236.1 million, a 10.1% decrease on 2015 figures.

Volume was mostly unchanged decreasing by 4%.

Table 3.10 Output Value (€m) and Volume of Cereals, 2015 - 2016


2015 2016 1

Value Volume Value Volume

Barley 174.0 1,105.7 155.4 1,056.1

Wheat 63.3 412.5 60.8 417.4

Oats 25.5 154.6 19.9 132.9

Total Cereals 262.7 1,672.7 236.1 1,606.5

1 Final Estimate



On the world market, the International Grains Council (IGC) forecasts 2016 -2017 global grain production in

the region of 2,094 million tonnes, 85 million tonnes or 4% above the 2015 - 2016 figure, this includes wheat

of 752 million tonnes and maize 1045 million tonnes.

Consumption is forecast to reach 2,062 million tonnes mainly due to the rise in feed demand, cereal stocks

are expected to rise to 507 million tonnes up nearly 50% on the low of 2012 - 2013.

Figure 3.11 Cereal production by crop type

Common Wheat, 45.4%

Barley, 20.0%

Maize, 20.3%

Other, 14.2%


Cereal Area, Yield & Production in Ireland.

The 2016 Cereals harvest is estimated at 2.28 million tonnes a 13% decrease on the 2015 harvest with the na-

tional cereal area falling by 5%. Lower yields combined with a reduced area and some significant crop losses

on individual farms in western counties have contributed to the overall reduction in grain produced in 2016.

With the exception of winter oats there was a decrease in the production of the main cereals in Ireland with

winter barley down 10% (84,000 tonnes) on 2015, winter wheat production fell 5% (29,000 tonnes) while

spring wheat production fell 32% year on year from 87,000 tonnes down to 59,000 tonnes with winter oats

bucking the trend with a 4% increase in production up to 109,000 tonnes.

Total production of wheat was 638,000 tonnes, an 8% decrease on 2015 while overall barley production was

1,453 million tonnes a 16% decrease on 2015. Nationally cereal yields were down for the main crops in 2016,

cereal yields falling nearly 10% on average. The decrease is attributed to poor conditions over the winter

months and poor weather at flowering for winter wheat and spring barley.

Main cereal prices in the EU continued to increase slightly in 2016 despite stiff competition in the market. It is

projected that cereal stocks will be in the region of 39 million tonnes at the end of June 2017.


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Table 3.11 Area, Yield and Production of Cereals, 2016

Production Area Yield

000's Tonnes 000's Hectares Tonnes/Hectares

Winter Wheat 579 60 9.7

Spring Wheat 59 7 8

Total Wheat 638 67 8.85 average

Winter Barley 628 74 8.6

Spring Barley 825 113 7.3

Total Barley 1453 187 7.95 average

Winter Oats 109 13 8.3

Spring Oats 72 10 7.3

Total Oats 181 23 7.8 average

Total Cereals 2272 277 8.2 average

Prices

Ireland is a deficit market for cereals and as such is greatly affected by world prices and supplies. For the

fourth year in succession, the world produced a bumper grain crop, adding further to world grain stocks

resulting in downward pressure on crop prices. .

Harvesting difficulties in certain parts of some counties, particularly in the west, resulted in significant losses

on individual farms. The total cereal area harvested in 2016 was 277,000 hectares a fall of 14,300 hectares

compared to the 2015 harvested area.



In Ireland similar to last year, the autumn of 2016 was very favourable for planting winter crops.

The area of winter cereals is estimated at 145,000 hectares, a 7% drop on last year, despite the poor

grain price outlook for harvest 2017. Winter barley area will again be larger than winter wheat.

Spring barley plantings may be impacted by negative world price sentiment.

3.8 HORTICULTURE & POTATOES

General Market Situation Ireland and EU 2016.

Prices and demand for most horticulture products remained strong in 2016. Competition within the retail

trade for the dominant share of fresh fruit and vegetables sales remained intense during 2016.

The horticulture sector (including potatoes) contributed approximately €433m to farm output in 2016, a

decrease of 0.5% on 2015.

The impact of a weakening sterling as a result of the Brexit referendum had a significant effect of reducing

farm gate output volume particularly within the mushroom sector, where over 80% of production is exported

to the United Kingdom.

Whilst many Irish growers continued to make significant capital investments in 2016 to improve production

efficiency as well as the quality of their produce, the weakening value of sterling did impact, with planned

investments not proceeding in some sectors within the horticultural industry. Energy costs still represent a

significant input cost for the industry, especially those operating under heated glass. This is leading many

growers to continue to invest in alternative energy sources and energy saving measures.

Table 3.12 Output value of horticulture, and potatoes, 2015 - 2016

EU Outlook for 2017

In the EU the total area planted to cereals is to decrease to just less than 57 million tonnes with

production set to decrease by 5% to 295 million tonnes with wheat falling 11% year on year.

At world market level, the International Grain Council (IGC) forecast the global production of all

grains 2016 - 2017 to increase to 2,094 million tonnes up 4.5% year on year, an all time high.

World total consumption is forecast at 2,062 million tonnes including 677 million tonnes for food,

917 million tonnes for feed and 338 million tonnes for industrial use.



Product 2015 2016 % Change 2015 - 2016 € m € m

Mushrooms 137 121.7 -11.2%

Potatoes 86.7 86.5 -0.2%

Field Vegetables 67.1 73.4 9.4%

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Product 2015 2016 % Change 2015 - 2016 € m € m

Protected Crops 86.1 86.3 0.2%

Outdoor Fruit Crops 9.5 11 15.8%

Bulbs, outdoor flowers and foliage sector 8.1 8.8 8.6%

Hardy nursery crops, and other horticulture sectors 40.6 45.4 11.8%

Total 435.1 433.1 -0.5%


Mushrooms

2016 was a challenging year for the Mushroom sector. The significant weakening of Sterling against the Euro

following the UK’s Brexit referendum had a major impact on mushroom grower profitability.

Irish grower numbers contracted slightly during 2016, as smaller growers continued to exit the industry.

Grower numbers at the end of 2016 stood at 46 across 54 production sites, with an estimated 3,500 people

working in the mushroom sector.

There was a year-on-year increase in production, however, the farm gate value of output for the sector for

2016 decreased compared to 2015 due to a weakening in the value of sterling. The UK market which

accounts for 83% of Irish mushroom production is becoming increasingly competitive due to a combination

of increased domestic UK production and a stronger presence of Polish mushrooms on the UK’s foodservice

market. However retailers do specify very short periods between picking on farm and delivery to their

central distribution centres, which presents an advantage for Irish mushroom sector.

Despite the impact of a weak sterling the sector remains resilient and the industry has achieved some price

increase on the UK market for 2017 in recognition of the weakening of sterling.

Fruit and Vegetables

The field vegetable sector experienced a good year in 2016. The early spring and summer period presented

difficulties for vegetable growers as the wet and cold weather impacted early production by delaying

planting of some field vegetables. However crops performed well due to favourable weather for the remain-

der of the year and in general, yields were good and prices were steady, on a par with 2015 with good de-

mand throughout the year.

Soft fruit growers enjoyed another good year as they benefited from a steady supply of product combined

with very strong consumer demand for soft fruit throughout the year. Given the increasing demand for soft

fruit and the recovering economic situation Ireland’s soft fruit sector have very good prospects for the

future.


Salad crop growers had a reasonable year in 2016 however production was back on 2015. This arose due to

lower light levels in 2016 as result of poorer weather at certain times, and especially during the summer

period. Despite the lower production levels in 2016 consumer demand for salads remained strong throughout

the year. Prices paid to growers have remained static for a number of years and this was reflected again in

2016. The rising cost of energy and static output prices are likely to be the key challenges for the sector going

forward.

Apple production was in general good in 2016 with mild favourable weather in the autumn contributing to

increase overall yields. The weakening sterling reduced the value of output for contracted cider growers who

are paid based on a sterling price. The Culinary market was difficult in 2016 due to reduced demand coupled

with a strong harvest. However the ‘Irish grown’ eating apple market experienced growth in 2016 due to

increasing demand from retail multiples for more Irish grown eating apples. This is seen as a very positive

development within the sector. Output from the apple sector is expected to increase significantly over the

coming years as a number of new orchards come into production.

Nursery Stock

The nursery sector continued to see improvement in 2016 and there is now increasing optimism within the

sector. A recovery in the landscape sector as result of increased economic activity from construction and

improving consumer sentiment is seeing an increased willingness by consumers to spend money on amenity

plants and landscaping once again. Sales of amenity plants and bedding were generally good in 2016. The

export market for amenity plants which is mainly to the UK, was largely unaffected by the weakening sterling

as most growers are paid in euro.

Prospects for 2017 are good with increasing capital investment now evident within the sector for the first

time in many years.

Potato Sector

The potato area increased marginally in 2016. The increased area can be attributed to good market conditions

in 2015 which has carried into the 2016 season. Despite the increase in area, overall production in 2016 was

down marginally on 2015 levels due to lower yields. The lower production volumes led to a significant firming

of prices compared to previous years with prices remaining positive during 2016 due to strong demand.

However, the early season potato market was difficult as it suffered due to late planting and late maturity.

The variety “Rooster” continues to maintain its position of being by far the most dominant variety planted by

Irish growers in 2016.

Indications for 2017 is that demand is likely to remain firm as stocks are down and this is likely to feed into

some marginal increase in area planted in 2017.


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Table 3.13 Area, Yield and Production of Potatoes, 2012 - 2016

Year Area under Crops Estimated Average Yield Production

(000 Ha.) (tonnes per Ha.) (000 tonnes)

2012 9 25.8 232

2013 10.7 38.2 410.1

2014 9.5 40.5 383

2015 8.5 42.3 360.1


The Outlook for the Horticulture Industry is reasonably positive with prices across the industry

expected to remain firm. Whilst weather, currency fluctuations and rising energy costs are key chal-

lenges for the industry, capital Investment continues to rise indicating a high level of confidence

among many growers across the horticultural sectors.



3.9 INTERMEDIATE CONSUMPTION

General Market Situation Ireland 2016

Intermediate consumption expenditure in 2016 was €4,944.1 million a decrease of 1.6% on 2015. The largest

reduction in costs came from fertilisers which dropped from €565.1 million to €502.5 million a reduction of

11.1%. Feeding stuffs which accounts for 27.6% of total intermediate consumption in the sector, increased

by 3.7% to €1,366.4 million.

Figure 3.12 Intermediate consumption, 2016 - Percentage share of selected items.



Price Indices for Agricultural Inputs

Total input price for agricultural inputs fell by 3.5% between 2015 and 2016, following on from a decrease of

2.4% between 2014 and 2015. The most significant reduction in input costs was the price of fertilisers, which

fell by 14.9% between 2015 and 2016, having increased by 0.5% between 2014 and 2015.

Table 3.14 Agricultural Input Price Index, 2014 - 2016

2014 2015 2016

Input Prices -4.50% -2.40% -3.50%

Feedingstuffs -9.70% -3.90% -1.60%

Including

Straight -17.50% -6.20% -4.40%

Cattle -9.60% -5.30% 0.40%

Pig -8.40% -1.20% -2.70%

Poultry -6.60% -1.60% -3.70%

Fertilisers -3.60% 0.50% -14.90%

including

Straight -3.90% 0.40% -18.20%

NPK -3.60% 0.50% -13.20%

PK -7.80% -0.70% -5.30%

Source: Central Statistics Office, Agricultural Price Index

Figure 3.13 Price Indices for Agricultural Inputs. Base 2010 = 100

Source: Central Statistics Office, Agricultural Price Index

90

95

100

105

110

115

120

125

130

135

140

2010 2011 2012 2013 2014 2015 2016

Seeds Energy FertilisersPlant protection products Veterinary expenses Feeding stuffs


http://www.cso.ie/px/pxeirestat/Database/eirestat/Agricultural%20Input%20and%20Output%20Price%20Indices/Agricultural%20Input%20and%20Output%20Price%20Indices_statbank.asp?sp=Agricultural%20Input%20and%20Output%20Price%20Indices&Planguage=0

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Animal Feedingstuffs

The volume of compound feedingstuffs produced in 2016 was 4.516 million tonnes, representing a 4%

increase on the 4.351 million tonnes produced in 2015. The overall cost of feedingstuffs was comparable

across years, increasing by 2% from €1.32 billion in 2015 to €1.35 billion in 2016. CSO data indicates an

overall reduction in the price of feedingstuffs of 1.6%.

Figure 3.14 Production of Compound Feedingstuffs, 2014 - 2016



Fertiliser & Ground Limestone

Data assembled by Department of Agriculture, Food and the Marine shows that for the sales year October 2015

to September 2016, total sales by volume of NPK fertiliser were 1,411,913 tonnes. This is an increase of 1.1%

from 1.395 million tonnes in 2014 - 2015. Sales of Nitrogen, Phosphorous and Potassium increased by 1.3%,

0.91% and 1% respectively. Data supplied by the Central Statistics Office show a reduction in the cost of

fertiliser for 2016 of 14.9%.

Ground Limestone sales in 2016 amounted to 967,281 tonnes compared to 893,730 tonnes in 2015, an increase

of 8%.

Outlook for 2017

With demand for oil likely to continue to increase in 2017, fuel prices are forecast to rise during 2017,

however electricity prices should remain stable.

Increased feeding bills are not anticipated for the majority of grassland farms, provided there are no

unforeseen weather events.

Fertiliser prices are likely to rise in 2017 however should start from a lower base following declines in

2015/2016.

Chapter 4: Trade

4.1 OVERVIEW

Global exports of goods totalled €117.6 billion in 2016, an increase of 4.6 % (€5.2 b) from 2015. Imports in

2016 also increased by 2.8 % totalling €72 billion by year end.

€72.09

€117.61

€0.00

€20.00

€40.00

€60.00

€80.00

€100.00

€120.00

€140.00

2012 2013 2014 2015 2016

Bill

ion

s

Total Imports Total Exports

Source: CSO External Trade –Value of Merchandise trade by Commodity Group and Year

4.2 AGRI-FOOD SECTOR TRADE BY VALUE AND VOLUME

The agri-food sector accounted for 10.3 % of total exports in 2016, and 11.3 % of total imports. Agri-food

exports in 2016 totalled €12,199 million a 1.8 % increase on 2015, while total agri-food imports for the period

were €8,170 million.

Between the period 2009 – 2016 agri-food exports increased by 56% from €7,807 million to €12,199 million.

During this time Beef exports increased by almost 50%, Cereal and Cereal Preparations by 59%, Forestry

exports doubled from €112 million to €226 million and sheepmeat exports increased by 70%. Dairy exports

also saw a substantial increase of 110% from €1,875 million to €3,950 million exported in 2016.


Figure 4.1 Value of Merchandise Trade by Year, 2012—2016

Agri-food exports are broken down into 24 categories identified and agreed by Department of Agriculture,

Food and the Marine and the Central Statistics Office. Products and Raw Goods are categorised using

combined nomenclature codes, a European harmonised system used to classify goods for customs and trade

reasons. These categories include agri-food items such as Forestry, and Animal Hides and Skins which are not

included as part of Bord Bia trade statistics.

http://www.cso.ie/px/pxeirestat/Statire/SelectVarVal/Define.asp?maintable=TSA01&PLanguage=0

Figure 4.2 Value and volume of Agri-food sector Exports by Year.

2012 2013 2014 2015 2016

Total Exports - Value €9,981,392.00 €10,577,648.00 €11,290,639.00 €11,984,359.00 €12,199,045.00

Total Exports - Volume 4,772,521 5,447,060 5,662,413 6,038,442 6,198,393

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

€0.00

€2,000,000.00

€4,000,000.00

€6,000,000.00

€8,000,000.00

€10,000,000.00

€12,000,000.00

€14,000,000.00

Ton

ne

s

Mill

ion

s €

00

0

Total Exports - Value Total Exports - Volume

Source: CSO Trade Statistics, 2016

Table 4.1 Value and volume of Agri-food exports by category, 2015—2016


FOU

R

2015 2016 % Change

2016/2015

Category: € 000 Tonnes € 000 Tonnes € Tonnes

Animal Foodstuffs 295,831 535,519 281,109 560,562 -5.0% 4.7%

Animal Oils & Fats 49,309 92,552 69,240 116,678 40.4% 26.1%

Animal Skins & Furs 149,236 83,009 126,450 84,911 -15.3% 2.3%

Beef 2,209,065 486,101 2,262,351 526,244 2.4% 8.3%

Beverages 1,240,058 780,765 1,288,376 818,947 3.9% 4.9%

Cereal & cereal preparation 402,868 467,805 378,141 362,574 -6.1% -22.5%

Coffee, Tea, Cocoa & Spices 372,412 63,297 371,561 62,016 -0.2% -2.0%

Cotton 146 44 68 31 -53.5% -28.6% Crude Animal & Vegetable Ma-terial 127,353 85,209 124,346 88,700 -2.4% 4.1%

Dairy Produce 3,858,828 1,179,504 3,950,726 1,214,798 2.4% 3.0%

Dairy Produce, 32.4%

Beef, 18.5%Beverages, 10.6%

Pigmeat, 6.0%

Fish, 4.5%

Other, 28.0%

Chapter 4: Trade

2015 2016 % Change

2016/2015


Egg 16,468 5,975 14,020 6,735 -14.9% 12.7%

Fish 567,600 251,995 554,715 201,824 -2.3% -19.9%

Flax, Wool & Animal Hair 15,501 8,047 11,098 7,324 -28.4% -9.0%

Forestry 212,447 1,105,928 226,321 1,211,167 6.5% 9.5%

Fruit & Vegetables 286,649 151,068 277,945 178,500 -3.0% 18.2%

Live Animals 430,508 78,885 339,863 64,789 -21.1% -17.9%

Miscellaneous Edible Products & Preparations 275,948 97,075 367,710 92,204 33.3% -5.0%

Oilseeds & Oleaginous Fruit 13,392 10,214 13,330 15,072 -0.5% 47.6%

Other Meat & Meat Produce 56,438 71,372 59,025 77,595 4.6% 8.7%

Pigmeat 669,771 242,174 730,783 264,530 9.1% 9.2%

Poultry 322,399 124,511 256,228 118,382 -20.5% -4.9%

Sheepmeat 241,893 48,017 275,019 55,474 13.7% 15.5%

Sugar, Sugar Preparation & Honey 162,406 56,347 211,564 52,988 30.3% -6.0%

Vegetable Oils & Fats 7,834 13,028 9,053 16,346 15.6% 25.5%

Grand Total 11,984,359 6,038,442 12,199,045 6,198,393 1.8% 2.6%


Dairy Produce and Beef remained the highest value exports accounting for €3,950 million and €2,262 million

of total exports respectively. The top five categories accounted for over 70% of total exports (by value) in

2016.

Figure 4.3 Total Agri-food exports by type, 2016



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4.3 AGRI-FOOD SECTOR TRADE BY DESTINATION

Irish agri-food goods were exported to over 160 countries in 2016 including new (or enhanced access) market

opportunities for beef in USA, Canada, and Saudi Arabia. Pork and Pork Products were introduced to the

South African market.

The United Kingdom remained our largest trading partner with almost 40% (€4,804 million) of total exports by

value in 2016, a decrease of 6.1 % from 2015. The top 20 trading countries accounted for almost 90% of total

trade for Irish exports in 2016.

Trade among the Top 20 destinations

increased by 1.4 % to €10,850 million in

2016.

The highest increase was recorded in Japan

where exports increased by almost 50 % to

€56 million.


Agri-Food sector exports by Top 20 destinations, 2016

Chapter 4: Trade

2015 2016 % Change 2016/2015

Country € 000 Tonnes € 000 Tonnes € 000 Tonnes

1 United Kingdom 5,114,661 3,448,543 4,804,528 3,521,417 -6.1% 2.1%

2 United States 869,757 184,936 1,022,184 189,505 17.5% 2.5%

3 China incl. Hong Kong and Macau 756,422 463,668 946,118 473,667 25.1% 2.2%

4 France 750,782 206,104 767,107 223,370 2.2% 8.4%

5 Netherlands 693,125 326,787 737,177 346,706 6.4% 6.1%

6 Germany 615,669 205,154 637,558 190,779 3.6% -7.0%

7 Italy 349,253 110,877 340,775 127,454 -2.4% 15.0%

8 Spain 226,311 67,142 257,021 70,642 13.6% 5.2%

9 Belgium 223,720 87,851 211,168 68,090 -5.6% -22.5%

10 Poland 158,061 55,665 190,790 64,423 20.7% 15.7%

11 Sweden 152,348 44,126 162,638 46,933 6.8% 6.4%

12 Saudi Arabia 170,528 31,761 136,437 26,149 -20.0% -17.7%

13 Denmark 122,199 59,356 131,676 60,022 7.8% 1.1%

14 Nigeria 169,541 115,056 105,082 64,947 -38.0% -43.6%

15 Canada 92,303 23,243 101,605 25,944 10.1% 11.6%

16 Russia 51,269 16,868 68,545 22,504 33.7% 33.4%

17 United Arab Emirates 54,172 15,651 60,128 21,734 11.0% 38.9%

18 Mexico 32,221 6,217 57,369 15,902 78.0% 155.8%

19 Japan 38,640 18,819 56,909 24,459 47.3% 30.0%

20 South Africa 54,768 32,515 55,519 37,114 1.4% 14.1%

Total 10,695,750 5,520,340 10,850,336 5,621,760 1.4% 1.8%

Table 4.2 Value and tonnage of Agri-food exports by Top 20 destinations, 2015 - 2016



4.4 KEY MARKETS FOR IRISH EXPORTS

United Kingdom

The United Kingdom (Great Britain and Northern Ireland) remains Ireland’s largest trading partner with almost

40% of total agri-food and over 60% of prepared consumer food (PCF) products exported to the UK in 2016.

In 2016 total agri-food exports to the UK totalled €4,804 million while imports were €3,730 million with a

trade surplus of €1,073 million.

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Figure 4.4 United Kingdom as part of total worldwide trade, 2012 - 2016

€-

€2,000,000

€4,000,000

€6,000,000

€8,000,000

€10,000,000

€12,000,000

€14,000,000

2012 2013 2014 2015 2016

Rest of World €5,633,606 €5,999,445 €6,566,250 €6,869,698 €7,394,517

United Kindom €4,347,786 €4,578,203 €4,724,389 €5,114,661 €4,804,528


In 2016 49% of total beef exports and 78% of total forestry exports were to the UK. Dairy exports totalling

€857 million (22%) in 2016 were to UK markets, including 52% of cheddar exports. Similarly 86% of fruit and

vegetables (which includes 99% of total mushroom exports) were destined for UK markets in 2016.

While overall trade to the United Kingdom fell by 6.1% in 2016 in comparison to 2015, fisheries, forestry,

pigmeat and sheepmeat all increased their exports to the UK in this period.


Table 4.3 Agri-food exports to United Kingdom by type, 2016

United Kingdom Great Britain Northern Ireland

Exports Imports Exports Imports Exports Imports

€ 000 € 000 € 000 € 000 € 000 € 000

Animal Foodstuffs 211,769 257,782 148,862 165,152 62,907 92,630

Animal Oils & Fats 10,293 15,150 10,269 6,820 24 8,330

Animal Skins & Furs 35,477 17 32,126 17 3,351

Beef 1,113,448 98,616 1,002,598 84,243 110,850 14,374

Beverages 301,642 339,362 216,140 300,932 85,502 38,429

Cereal & cereal preparation 339,582 659,748 269,090 592,995 70,492 66,752

Coffee, Tea, Cocoa & Spices 242,241 294,154 228,436 291,359 13,805 2,796

Cotton 34 46 34 35 11

Crude Animal & Vegetable Ma-terial 31,695 49,898 28,832 47,124 2,863 2,774

Dairy Produce 857,279 415,177 801,386 265,832 55,893 149,345

Egg 10,877 10,550 8,653 7,176 2,224 3,374

Fish 64,262 165,592 54,483 149,527 9,779 16,065

Flax, Wool & Animal Hair 5,143 2,017 5,143 1,334 683

While Prepared Consumer Foods (PCF) exports to the United Kingdom accounted for just over 63% of total

PCF exports, 99.7% of total ‘Savoury Snacks’ and 92.9% of Breads under the PCF heading were exported to the

UK. Figure 4.6 provides a detailed analysis of each category by percentage exported to the U K in 2016

Forestry 176,544 53,149 125,910 35,290 50,634 17,859

Fruit & Vegetables 239,155 389,003 189,264 336,058 49,891 52,945

Live Animals 259,200 192,920 190,158 186,246 69,043 6,674

Miscellaneous Edible Products & Preparations 118,234 241,985 107,977 235,123 10,257 6,862

Oilseeds & Oleaginous Fruit 11,164 14,034 7,888 6,444 3,276 7,590

Other Meat & Meat Produce 46,949 19,569 43,330 18,394 3,618 1,175

Pigmeat 408,182 127,072 382,548 120,119 25,635 6,953

Poultry 217,308 174,315 196,309 151,759 20,999 22,556

Sheepmeat 52,027 17,980 51,408 17,831 619 150

Sugar, Sugar Preparation & Honey 44,467 143,087 38,353 137,397 6,113 5,690

Vegetable Oils & Fats 7,557 49,758 1,148 38,729 6,410 11,029

Grand Total 4,804,528 3,730,984 4,140,345 3,195,936 664,183 535,047


Chapter 4: Trade


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Figure 4.5 Prepared Consumer Food exports by destination, 2016

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

UK Rest of World



Prepared Consumer Food exports to the United Kingdom have increased by 22% from €1,302 million to

€1,613 million during the period 2012 – 2016. Meat Preparations remain the highest valued category in-

creasing by 14.8% to €581 million and accounting for just over a third of total PCF exports to the UK.

Table 4.4 Prepared Consumer Food exports to United Kingdom by type, 2016

UK Great Britain Northern Ireland Exports Imports Exports Imports Exports Imports € € € € € €

Biscuits

11,379

103,192

9,909

101,743 1,470

1,449

Breads

175,474

67,178

156,052

64,862 19,422

2,317

Cereal based Products

61,017

244,399

28,082

216,445 32,935

27,953

Chocolate-based products

212,437

206,603

202,134

204,801 10,303

1,801

Dairy Preparations

136,498

65,209

133,057

64,021 3,441

1,188

Chapter 4: Trade

Table 4.4 Prepared Consumer Food exports to United Kingdom by type, 2016 (contd.)

UK Great Britain Northern Ireland Exports Imports Exports Imports Exports Imports € € € € € €

Extracts, Sauces, Soups

42,057

133,216

35,945

129,941 6,112

3,275

Frozen Confectionery

9,922

27,387

7,942

26,891 1,981

496

Fruit & Vegetable based

53,831

208,673

43,465

180,643 10,366

28,030

Fruit-based bakery

71,753

57,396

69,152

53,975 2,601

3,421

Meat Preparations

581,382

248,464

548,044

227,231 33,338

21,233

Other Food Preparations

85,570

127,073

74,844

117,611 10,725

9,462

Pizza/Quiche

11,184

77,707

8,165

70,679 3,019

7,028

Savoury Snacks etc

13,418

44,548

11,468

40,971 1,950

3,577

Sugar-based products

38,217

103,681

33,063

98,799 5,154

4,881 Waters & Juices & Soft Drinks

109,302

220,193

98,040

210,582 11,261

9,611

Grand Total

1,613,442

1,934,918

1,459,362

1,809,197 154,080

125,721



Case Study Effect of Brexit on the Irish Agri food sector and the steps taken

The agri-food sector is of critical importance to the Irish economy, and its regional spread means

it underpins the socio-economic development of rural areas in particular. The sector employed

approximately 174,000 people, representing 8.6% of total employment, in 2016. There are ambi-

tious plans to further grow the sector under the Food Wise 2025 strategy, which could see the

creation of 23,000 direct and indirect jobs and a growth in the value of exports by 85% over the

next decade.

The relative dependence of the agri-food sector on the UK market is illustrated by CSO trade sta-

tistics. These show that it remains by far Ireland’s most important trading partner for the agri-

food sector, with a trade surplus of €1.1 billion last year. In 2016 Irish agri-food exports to the UK

came to €4.8 billion, or almost 40% of total agri-food exports. Similarly, Irish agri-food imports

from the UK came to €3.7 billion, or 46% of total agri-food imports.

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The Department and its agencies have conducted various analyses of the possible im-

pact Brexit will have on the sector in the event of no free trade agreement being agreed in

the Brexit negotiations. These analyses range from initial and ongoing internal Departmental

assessments to published work by Teagasc, Bord Bia and others. The results show that the

outcome for the Irish agri-food sector would be unambiguously negative.

While the main impact of the Brexit vote to date has been the effect of sterling volatility on

those businesses that have a significant trading relationship with the UK, the medium to long

term threats include the possible introduction of tariffs on trade between the EU and UK and

potential divergences in regulations and standards between both countries post-Brexit. Diffi-

cult challenges could also arise in relation to potentially restricted access to fishing grounds

and resources, the freedom of the UK to negotiate trade agreements with third countries;

border controls and certification which will most likely result in delays and additional costs;

additional certification and sealing for products transiting through the UK en route to the EU.

In response to these challenges, the Department has undertaken a number of important

steps, which include the establishment of a Brexit Response Committee and a dedicated

Brexit Unit. The Department has also created a Stakeholder Consultative Committee. This

consultative process is complemented by frequent contact with representative organisations

and companies on an ongoing basis as well as through the All-Island Civic Dialogue process.

As part of the 2017 Budget, measures aimed at alleviating the exchange rate volatility pres-

sures included the introduction of the ‘Agri Cashflow Support Loan’ fund of €150 million; en-

hanced taxation measures and an additional allocation of €1.6m in 2016 and €2m in 2017 to

Bord Bia to ensure that they are in a position to provide Brexit-related supports to affected

companies, including their new Brexit Barometer. Increased funding was also provided for

the Rural Development Programme and Seafood Development Programme.

The Department are engaged in a series of bilateral meetings with EU counterparts, which

are aimed at building alliances to ensure that agri-food issues are at the top of the EU nego-

tiation agenda. To date fruitful meetings have been held with counterparts in Germany,

Netherlands, Denmark, Estonia, Poland, France, Luxembourg, Austria and Belgium. Further

meetings are being arranged throughout the process of Brexit negotiations.


Chapter 4: Trade

United States of America

Total agri-food exports to the US increased by 17.5% in 2016 to a high of €1,022 million. Trade in the previous

five year period rose by over 50% from €518 million in 2012.

Figure 4.6 Value of US Agri-food exports by year, 2012 - 2016

This figure of €1,022 million includes €511 million in Beverage and €172 million in Dairy exports which

cumulatively account for almost 70% of total US trade.

Enhanced access to the Beef market in the US for beef intended for grinding led to an increase of 80%

between 2015 and 2016 from €5 million to €9 million.

Figure 4.7 Agri-food exports to US by type, 2016




$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2012 2013 2014 2015 2016

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China

China (including Hong Kong and Macau) remains Ireland’s third biggest market in terms of total exports

accounting for €946 million in exports in 2016 an increase of 25% from 2015 and more than doubling in value

since €349 million in 2012.

Figure 4.8 Value of Chinese Agri-food exports by year, 2012 - 2016


China is Ireland’s second largest market in terms of Dairy Produce totalling €643 million (69,000 tonnes), with

‘Food preparations for infant use’ responsible for over 50% of total value of trade to China in 2016 with

almost 40,000 tonnes exported.

China is also the second largest market for Irish Pigmeat worth over €121 million, and sixth in seafood exports

at €36 million.

Figure 4.9 Agri-food exports to China by type, 2016


€-

€100,000

€200,000

€300,000

€400,000

€500,000

€600,000

€700,000

€800,000

€900,000

€1,000,000

2012 2013 2014 2015 2016

€0

00


2015 2016 % Change 2016/2015


Biscuits 17,464 3,643 12,708 3,059 -27.2% -16.0%

Breads 191,091 106,051 188,838 116,254 -1.2% 9.6%

Cereal based Products 71,507 113,349 69,126 123,900 -3.3% 9.3%

Chocolate-based products 271,874 49,793 263,984 51,213 -2.9% 2.9%

Chapter 4: Trade

4.5 PREPARED CONSUMER FOODS

Prepared consumer foods are value added food and beverage products which sell both domestically and

internationally to retail, food service or other food companies. These goods are categorised into 15 areas

identified and agreed by industry stakeholders, Department of Agriculture, Food and the Marine and the

Central Statistics Office.

Ireland exported €2,547 million in prepared consumer foods in 2016 an increase of 27% since 2012, however

in the same period PCF imports have also increased by 24% from €2,741 million in 2012 to €3,393 million in

2016, a trade deficit of €845 million.

Figure 4.10 Prepared Consumer Food exports and imports, 2012 - 2016


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2012 2013 2014 2015 2016

Total PCF Exports - €000 Total PCF Imports - €000

Products are categorised using combined nomenclature codes, a European harmonised system used to

classify goods for customs and trade reasons. Table 4.5 outlines Irish exports by prepared consumer food

category for the period 2015 and 2016.

Table 4.5 Prepared Consumer Food exports by type, 2015 - 2016


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Fruit & Vegetable based 56,388 25,472 60,450 30,118 7.2% 18.2%

Fruit-based bakery 67,299 30,718 80,061 32,981 19.0% 7.4%

Meat Preparations 921,896 238,389 871,094 234,042 -5.5% -1.8%

Other Food Preparations 249,621 88,522 326,626 77,687 30.8% -12.2%

Pizza/Quiche 19,615 7,303 14,338 4,107 -26.9% -43.8%

Savoury Snacks etc 12,329 1,845 13,458 1,709 9.2% -7.4%

Sugar-based products 123,927 45,292 138,810 42,391 12.0% -6.4%

Waters & Juices & Soft Drinks 173,836 163,292 184,911 187,917 6.4% 15.1%

Grand Total 2,523,963 953,552 2,547,529 977,092 0.9% 2.5%

Total PCF exports increased by 2.5% between 2015 and 2016 with the highest increases (by percentage)

recorded in Fruit and Vegetable based products which increased by 19% to €32 million during the period.

Meat preparations remained the highest valued prepared consumer food export accounting for €871 million

(34%) of the total PCF exports in 2016. The top five categories accounted for over 70% of total exports by

value.


Figure 4.11 Prepared Consumer Food exports by type, 2016



Dairy Preparations 223,864 53,775 188,762 48,062 -15.7% -10.6%

Extracts, Sauces, Soups 106,890 19,450 117,278 16,259 9.7% -16.4%

Frozen Confectionery 16,362 6,655 17,085 7,394 4.4% 11.1%

2015 2016 % Change 2016/2015


Chapter 4: Trade

While the majority of PCF products were exported to the United Kingdom in 2016 (63% of total exports).

Prepared Consumer Foods were also exported to European and non European markets including France,

Netherlands, China, South Korea and United Arab Emirates.

Prepared Consumer Food exports by Top 20 destinations, 2016

Trade among the Top 20

destinations accounted for

almost 97% of total prepared

consumer food exports in 2016.

PCF exports to the US more than

doubled between 2015 and

2016 to €198 million.



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Table 4.6 Value and tonnage of PCF exports by Top 20 destinations, 2015 - 2016

2015 2016 % Change 2015/2016

Country € 000 Tonnes € 000 Tonnes € 000 Tonnes

1 United Kingdom 1,751,679 807,950 1,613,442 811,690 -7.9% 0.5%

2 United States 88,481 16,519 198,156 18,359 124.0% 11.1%

3 France 150,857 29,938 159,972 31,404 6.0% 4.9%

4 Germany 67,039 14,301 81,431 17,247 21.5% 20.6%

5 Netherlands 81,240 17,641 77,516 12,649 -4.6% -28.3%

6 Italy 54,402 8,310 66,075 9,425 21.5% 13.4%

7 Spain 54,060 7,922 62,357 8,962 15.3% 13.1%

8 Poland 16,884 4,441 42,728 13,961 153.1% 214.4%

9 Belgium 32,409 4,609 30,559 4,375 -5.7% -5.1%

10 Sweden 25,917 4,677 26,250 4,821 1.3% 3.1%

11 South Korea 21,058 1,913 20,555 2,150 -2.4% 12.4%

12 Denmark 11,285 2,930 12,718 3,020 12.7% 3.1%

13 China incl. Hong Kong and Macau 13,754 1,730 12,665 1,750 -7.9% 1.2%

14 Australia 12,366 1,665 10,447 1,859 -15.5% 11.7%

15 Latvia 3,545 1,275 10,196 3,489 187.6% 173.6%

16 Portugal 8,583 2,672 9,982 2,703 16.3% 1.2%

17 United Arab Emirates 11,619 2,753 9,738 1,959 -16.2% -28.8%

18 Canada 8,085 1,833 8,259 1,972 2.2% 7.6%

19 Czech Republic 5,675 809 6,380 3,336 12.4% 312.4%

20 Russia 6,640 503 5,911 458 -11.0% -9.0%

Grand Total 2,425,578 934,391 2,465,335 955,589 1.6% 2.3%



Chapter 5: EU and International Policy

5.1 OVERVIEW

The EU and International Agriculture Policy chapter offers an overview of significant international factors

which effect Irish agriculture. This covers the influence of EU agriculture policy on Irish agriculture

development. In addition, this chapter also utilises information generated by the Organisation for Economic

Co-operation and Development (OECD) data to benchmark the levels of EU agriculture support against other

international markets, and provide updates on international trade developments including trade negotiations

at the World Trade Organisation (WTO).

5.2 EU AGRICULTURE POLICY

This section looks at the impact of EU agriculture policy also known as the Common Agriculture Policy (CAP).

In this subsection, we will present information on the estimated Irish agriculture contributions and

expenditure in relation to CAP, and outline the overarching aims of the current 2014-2020 Rural Development

Programme.

The 2016 EU budget contained total commitments of €155 billion in 2016 (€145 billion in 2015). Approxi-

mately 36% (38% in 2015) of this budget was marked for agriculture and rural development. Since Ireland’s

accession to the EU in 1973, a major proportion of the EU payments to Ireland have been in relation to the

agriculture sector. Figure 5.1 (below) illustrates the flows of the estimated agriculture funding.

€0

€500

€1,000

€1,500

€2,000

€2,500

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

20

09

20

11

20

13

20

15

Estimated Irish Contribution to EU Agriculture Expenditure Total EU Agriculture Spend in Ireland Net Budget Effect

Figure 5.1 Agriculture Expenditure in Ireland, and Estimated Irish Contribution

Source: Department of Agriculture, Food and the Marine, Department of Finance, EU Commission


We can estimate the net budget effect or net benefit of EU funds to Irish expenditure on agriculture by sub-

tracting the estimated Irish contribution from the EU expenditure on agriculture. By completing these calcula-

tions the Department estimates the net benefit of EU agriculture expenditure to have been €555 million in

2016 (€875 million in 2015).

5.3 INTERNATIONAL COMPARISONS OF AGRICULTURE SUPPORT

This section utilises information produced by the OECD, for its annual Agricultural Policies and Monitoring Re-

port to compare international levels of Agriculture support to that of the EU. These estimates allow govern-

ments to compare expenditure levels to that of other nations and identify expenditure trends.

Introduction to OECD Support Estimates

There are three indicators produced within the OECD of significant interest to the Department; Producer Sup-

port Estimate (PSE), Consumer Support Estimate (CSE) and the Total Support Estimate (TSE). These are de-

scribed as follows:

Producer Support Estimate (PSE): Is an indicator of annual gross transfers from consumers and taxpayers

at farm gate level.

Consumer Support Estimate (CSE): Measures by how much domestic farm gate prices are inflated by agri-

culture policy at farm gate level. CSE figures are usually negative indicating an implicit tax to consumers,

as price support policies usually outweigh any consumption subsidies for consumers.

Total Support Estimate (TSE): Quantifies overall transfers to agriculture from taxpayers and consumers as

a result of agricultural policy.


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Table 5.1 Producer Support Estimate (PSE)

Australia €m 1133.74 783.92 817.85 543.79 530.78

% of Farm Gate 3% 2% 2% 1% 1%

Brazil €m 8251.27 5347.22 4665.32 5487.16 3688.85

% of Farm Gate 6% 4% 3% 4% 3%

Canada €m 5334.68 5850.35 4032.18 3801.07 3866.56

% of Farm Gate 15% 14% 10% 10% 9%

Producer Support Estimate (PSE)

The PSE data of select countries shown, clearly demonstrates that the China is the largest supporter of agricul-

tural producers in absolute terms. It is estimated that the China provided approximately €277 billion in 2015.

This equates to 21% of all farm receipts in China during 2015. Whilst the China possesses the highest absolute

support for producers, many other countries notably Japan, Switzerland and Norway provide more support as

a percentage of farm gate prices. Switzerland and Norway jointly support producers to the highest degree

providing support at 62% of farm gate prices.


Year 2011 2012 2013 2014 2015(1)

China €m 81213.93 170515.7 198753 207704.3 277101.6

% of Farm Gate 10% 18% 19% 19% 21%

EU-28 €m 78379.99 86002.83 91017.57 81560.2 81118.92

% of Farm Gate 18% 19% 20% 18% 19%

Japan €m 43403.05 50922.28 37832.92 32774.33 30207.18

% of Farm Gate 51% 55% 52% 50% 43%

Korea €m 15107.51 15881.3 16183.64 16411.51 18135.34

% of Farm Gate 53% 50% 51% 49% 49%

New Zealand €m 116.85 112.79 97.59 100.51 91.27

% of Farm Gate 91% 82% 60% 73% 66%

Norway €m 2888.37 3328.78 2951.91 2976.04 2931.97

% of Farm Gate 61% 63% 57% 60% 62%

Switzerland €m 4891.21 5205.73 4746.38 5512.25 6975.03

% of Farm Gate 49% 52% 49% 56% 62%

Turkey €m 13978.52 13333.21 11456.18 11065.3 10428.51

% of Farm Gate 23% 21% 21% 22% 20%

US €m 23504.85 28002.87 21860.8 32839.88 34962.4

% of Farm Gate 8% 8% 7% 10% 9%

Source: Organisation for Economic Cooperation and Development, 2017

Note: (1) 2015 figures are provisional estimates

Consumer Support Estimate (CSE)

The CSE data of selected countries demonstrates that China applies the largest implicit tax on consumers in

absolute terms at -€265 billion. When measured as a percentage of farm gate prices, this equates to a CSE of -

21%. Whilst China applies the largest implicit tax on consumers in absolute terms, a number of countries apply

a larger implicit tax as a percentage of farm gate prices. Most notably from the table below Switzerland, Nor-

way and Korea have the highest implicit tax on consumer as a percentage of farm gate prices. Korea possesses

the largest CSE of these at -45%.

Table 5.2 Consumer Support Estimate


Year 2011 2012 2013 2014 2015*

Australia €m 1133.74 783.92 817.85 543.79 530.78

% of Farm Gate 3% 2% 2% 1% 1%

Brazil €m 8251.27 5347.22 4665.32 5487.16 3688.85

% of Farm Gate 6% 4% 3% 4% 3%

Canada €m 5334.68 5850.35 4032.18 3801.07 3866.56

% of Farm Gate 15% 14% 10% 10% 9%

China €m 81213.93 170515.7 198753 207704.3 277101.6

% of Farm Gate 10% 18% 19% 19% 21%

EU-28 €m 78379.99 86002.83 91017.57 81560.2 81118.92

% of Farm Gate 18% 19% 20% 18% 19%

Japan €m 43403.05 50922.28 37832.92 32774.33 30207.18

% of Farm Gate 51% 55% 52% 50% 43%

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Year 2011 2012 2013 2014 2015*

Korea €m 15107.51 15881.3 16183.64 16411.51 18135.34

% of Farm Gate 53% 50% 51% 49% 49%

New Zealand €m 116.85 112.79 97.59 100.51 91.27

% of Farm Gate 91% 82% 60% 73% 66%

Norway €m 2888.37 3328.78 2951.91 2976.04 2931.97

% of Farm Gate 61% 63% 57% 60% 62%

Switzerland €m 4891.21 5205.73 4746.38 5512.25 6975.03

% of Farm Gate 49% 52% 49% 56% 62%

Turkey €m 13978.52 13333.21 11456.18 11065.3 10428.51

% of Farm Gate 23% 21% 21% 22% 20%

US €m 23504.85 28002.87 21860.8 32839.88 34962.4

% of Farm Gate 8% 8% 7% 10% 9%

Source: Organisation for Economic Cooperation and Development, 2017


Total Support Estimate (TSE)

TSE data of select countries show that China provides the largest annual transfer in monetary value to agricul-

ture from taxpayers and consumers in absolute terms. It is estimated that China provided approximately €306

billion in 2015. This equated to 3 % of GDP during 2015, also making it the largest supporter of agriculture as a

percentage of GDP.

Year 2011 2012 2013 2014 2015(1)

Australia €m € 1,914 € 1,687 € 1,657 € 1,419 € 1,395

Brazil €m € 9,742 € 6,646 € 5,732 € 6,561 € 4,671

Canada €m € 7,119 € 7,677 € 5,771 € 5,414 € 5,452

China €m € 98,142 € 192,753 € 223,604 € 236,196 € 306,231

EU-28 €m € 91,581 € 99,335 € 104,107 € 94,227 € 93,972

Japan €m € 52,468 € 59,922 € 45,280 € 39,211 € 36,287

Korea €m € 16,931 € 18,146 € 18,496 € 18,519 € 20,672

New Zealand €m € 413 € 452 € 408 € 422 € 437

Norway €m € 3,124 € 3,649 € 3,282 € 3,279 € 3,230

Switzerland €m € 5,463 € 5,806 € 5,345 € 6,120 € 7,677

Turkey €m € 16,353 € 15,024 € 13,885 € 13,252 € 12,830

US €m € 60,261 € 69,427 € 66,209 € 73,933 € 69,280

Source: Organisation for Economic Cooperation and Development, Agricultural Policies and Monitoring 2017

Note: (1) 2015 figures are provisional estimates

Table 5.3 Total Support Estimate (€m)


5.4 EU DEVELOPMENTS

2016 saw Netherlands and Slovakia share the role of President of the Council of the European Union –

Netherlands from January to June and Slovakia from July to December. The main items discussed during 2016

included Simplification of the CAP, market developments in the dairy and pigmeat sectors in particular, and

the ongoing effects of the Russian ban. Preliminary discussions on the future of CAP post 2020 also

commenced. Legislative proposals discussed during 2016 included organics, plant health and veterinary

medicinal products.

CAP Simplification

Simplification of the CAP continued in 2016. A number of simplified market measures were adopted in May,

including regulations on public intervention and private storage and on import and export licences. The

Commission undertook a public consultation process on the implementation of the greening provisions in the

first quarter of 2016 and subsequently announced a range of Greening simplification measures in July 2016,

with effect from the 2017 claim year. The measures focused on changes to various rules in relation to

Ecological Focus Areas and, to a lesser extent, Crop Diversification. The main objectives for these proposed

changes were to:

Better specify and/or clarify what is required from farmers and national administrations, particularly

with regard to landscape features.

Eliminate the more burdensome technical requirements without lowering environmental benefits.

Provide more flexibility or alternative where this increases the environmental and climate benefits of

greening.

Bring about additional harmonisation of some requirements and conditions.

Also as part of the simplification process, the European Commission submitted the Omnibus Proposal in the

latter half of 2016. The proposal forms part of its mid-term review of the Multiannual Financial Framework

2014-2020. In addition to revising the general financial rules concerning multiannual programmes, the

Omnibus Proposal also includes simplification related changes to some primary CAP legislation, including the

direct payments and rural development regulations. Discussions on this proposal are ongoing .

Russian Ban on EU Products

The overall ban remains in place until 31 December 2017, in addition to the African Swine Fever-related ban

introduced in early 2014. All Member States, including Ireland, have urged the European Commission to inten-

sify its contacts with the Russian authorities with a view to lifting these bans, particularly with a view to re-

storing the trade in live pigs, pork fat, lard and offal.


FIVE

Market developments

Market developments across the EU, particularly across the dairy, livestock and fruit & vegetable sectors,

continued to feature in 2016. A second package of measures was introduced in March 2016, which included

doubling the intervention ceiling for skimmed milk powder and butter; a new Private Storage Aid scheme for

pigmeat and an examination of further flexibilities in the State Aid regime. There was also a commitment to

examine the scope to provide for early payments (mid-October) under the major EU payments schemes. The

package also included scope for supply control measures, something which Ireland has been opposed to on

the basis that it would hamper the development plans for the sector into the future and could also allow

global competitors to step in and fill the supply gap created. It could also hamper the ability of Irish and

European dairy farmers to respond to the market upturn when it arrives. Ireland agreed to the inclusion of a

voluntary supply control option in the March 2016 package, but only on the basis that it would be a

temporary measure, strictly voluntary at Member State and producer level, and funded at Member State level

only.

Despite the measures introduced in March, difficulties across the market sectors continued, and the

Commission presented a further package of support measures in July 2016.

The main component was a fund of €500 million, which was in turn comprised of two separate elements,

detailed below. The first element of the €500 million fund was a €150 million EU-wide measure to compen-

sate farmers for reducing their milk output in the final quarter of 2016 compared to the same period in 2015

(at a rate of 14c/kg). Other elements included the extension of Skimmed Milk Powder (SMP) intervention and

private storage from September 2016 to February 2017 (and a commitment to avoid market destabilisation

when releasing product), as well as the payment of advance payments of 70% for the basic payment scheme

and 85% for RDP schemes from October 2016.

The second element of the July package was a €350 million fund that was allocated to Member States in the

form of national envelopes, which each Member State could use in accordance with their domestic

circumstances. Member States were afforded a large degree of flexibility in terms of the measures they might

adopt. The eligibility criteria included dealing with liquidity issues, strengthening co-operation, supporting

quality assurance schemes and providing training in financial management. Ireland was allocated €11.09 mil-

lion from the fund, which could be topped up by 100% from national funding. Member States were required

to notify the Commission by 1 November 2016 of the measures to be adopted.

Minister Creed subsequently announced a new low cost loan fund for the livestock and tillage sectors which

utilised Ireland’s €11.09 million allocation, in conjunction with national funds, to leverage a greater fund in the

region of €150 million to provide low cost loans for Irish farmers (See Section 2.11 for further information).



Rural Development

The first amendment to Ireland’s RDP 2014 – 2020 was formally approved by the European Commission on

23rd June, 2016. It introduced:

Changes to GLAS 2 (agri-environmental scheme), on foot of a review of GLAS 1.

The Burren Programme (a locally led agri-environmental scheme).

An amendment to TAMS II (on-farm investment scheme) to introduce a tillage scheme, rainwater har-

vesting and sheep fencing.

Changes to the Organic Farming Scheme to allow for the extension of ‘old’ contracts and the inclusion

of additional land.

Permission to be a member of two Knowledge Transfer Groups.

LEADER clarifications in relation to use of second-hand equipment, use of payment costs instead of sim-

plified cost options and inclusion of reference to advance payments.

The second amendment to Ireland’s RDP was submitted to the RDP Monitoring Committee in advance of its

meeting on 7 September 2016, and then formally submitted to the Commission on 22 September. The

Commission then engaged in an internal inter-service consultation process. Formal approval from the

European Commission for Ireland’s second amendment to its RDP 2014-2020 is expected in 2017.

5.5 INTERNATIONAL TRADE DEVELOPMENTS

EU-MERCOSUR (Brazil, Argentina, Paraguay and Uruguay)

There is a need for continued vigilance in relation to the conduct of these trade negotiations, particularly

given their potentially very significant negative implications for the EU and Irish beef sectors. Ireland worked

very closely with other Member States in both Agriculture and Trade committees of the EU, and at Council of

Ministers level, to ensure that no tariff rate quota for beef was included in the EU offer to Mercosur when

offers were exchanged in May 2016. Three rounds of negotiations have taken place since then, most recently

from 3-7 July 2017.

Transatlantic Trade and Investment Partnership between EU and US (TTIP)

Following three years of intense talks and fifteen rounds of negotiations (the last in New York in October

2016) the TTIP talks are effectively on hold until there is more clarity on the approach that will be taken by

the new U.S. administration.

Comprehensive Economic and Trade Agreement (CETA)

Following a process of legal review, the agreement was signed on 30 October 2016, and it is expected that it

will provisionally apply from September 2017. From an Irish agri-food perspective, the need for a balanced


FIVE

approach informed Ireland’s approach to the negotiations. The outcome is a satisfactory one - although

increased access to the EU market was granted for Canadian beef, greater access to the Canadian market for

EU beef and dairy products (notably cheese) was secured.

EU-SINGAPORE

Negotiations for an EU-Singapore FTA were completed in October 2014, but the approval process by the

Council of Ministers and the European Parliament was put on hold pending the outcome of proceedings in the

European Court of Justice (ECJ). On 16 May 2017, the ECJ ruled that the Agreement could not be ratified at EU

level without the approval of all Member States.

EU-JAPAN

The EU-Japan negotiations for a Free Trade Agreement were launched in March 2013. This was followed by

nineteen rounds of negotiations, concluding with agreement in principle on an Economic Partnership

Agreement (EPA) in Brussels on 6 July 2017. The agreement in principle does not correspond to the end of the

negotiating process, and some chapters are still under negotiation. In addition, the overall status of the

agreement (mixed or not mixed) has not yet been decided, although the Commission hopes to have the EPA

fully ratified by 2019. Nevertheless, it represents a major boost for the EU agri-food sector, with considerable

additional market access provided for in relation to beef, pigmeat and dairy (cheeses) products. As such, it

presents a significant opportunity to grow Irish beef exports in particular.

EU-VIETNAM

In July 2015 the Commission announced a provisional agreement with Vietnam covering the full dismantling

of 99%-plus of tariffs over 7 years for EU and 10 years for Vietnam. On 1 February 2017, the preliminary text

of the Agreement was published on DG Trade’s website. The legal review of the text is nearing its end. The

text will then be translated into all official EU languages and into Vietnamese before being presented to the

Council for ratification and the European Parliament for consent in the second half of 2017. It is expected that

the agreement will enter into force in 2018.

EU-MEXICO

Four rounds of negotiations have taken place to date on the Modernisation of the EU-Mexico Global

Agreement, most recently in Mexico in June 2017. Market access offers are currently being considered, and it

is hoped to conclude an agreement by the end of 2017.

EU-AUSTRALIA/NEW ZEALAND

The development of Free Trade Agreements between the EU and Australia / New Zealand is at an early stage.

In June 2016, the Commission completed an external study and public consultation, and scoping papers in re-

spect of each negotiation were completed in early 2017. Commission impact assessments will now be com-

pleted, before the Commission seeks a mandate from Member States to commence negotiations.


Chapter 6: Food and the Consumer

6.1 OVERVIEW

2016 was another positive year for the Irish agri-food industry, as the sector continues to build on its position

as one of Ireland’s most important indigenous industries. The food and beverages sector provides a primary

outlet for the produce and output of the country’s 140,000 family farms and generated over €26 billion in

turnover in 2014 (latest year available). The sector is an important source of employment in rural areas and

employs over 55,000 people directly.

Food Safety remained a strong priority for the Department, ensuring full traceability for Irish products, and

meeting consumer expectations that product being bought is produced in a sustainable manner, is tasty and

comes from a safe trustworthy source.

Output - Turnover and Gross Value Added

The most recent data available from the CSO Census of Industrial Production 2014 show the Gross Value

Added (GVA) attributable to the food and drink sector was €9.3 billion in 2014, an increase of almost 33%

from 2008. Industrial Turnover reached €127.4 billion in 2014 with the Food and Beverage Sector accounting

for 21.6% of this.

6.2 THE FOOD AND BEVERAGES SECTOR

Figure 6.1 Percentage share of industrial GVA by sector, 2014

Source: CSO Census of Industrial Production 2014


http://www.cso.ie/en/releasesandpublications/er/cip/censusofindustrialproductionenterprises2014/

http://www.cso.ie/en/releasesandpublications/er/cip/censusofindustrialproductionenterprises2014/

Of the €9.3 billion attributable to the Food and Beverage sector in 2014, meat and dairy accounted for 16% of

the sector’s total, while beverages accounted for some 17%. “Other Foods” which would include processed

food products, unsurprisingly accounted for a high proportion of total GVA for the sector at 60% or €5.5

billion. The composition of output as measured by both turnover and gross value added by broad sector for

2014 is outlined in Figures 6.1and 6.2.

Figure 6.2 Composition of Food and Beverages industry GVA by sector, 2014

SIX

Source: CSO Census of Industrial Production - Enterprises, 2014

The Food and Beverage sector accounted for over €26 billion in turnover or 23% of total turnover for all

manufacturing industries. The food sector (excluding beverages) accounts for about 87% of turnover in the

Food and Beverage sector with meat and dairy production accounting for over one third of turnover. The

meat sector, along with dairying, continues to play a highly important role in the overall food sector, with the

Other Foods category providing a vital source of demand for all indigenous primary production.

Beverages13%

Meat21%

Fish2%

Fruit & Veg1%

Oils & Fats0%

Dairy17%

Grain Products0%

Bakery products etc3%

Other Food39%

Animal Feeds4%

Figure 6.3 Composition of Food and beverages industry Turnover by sector, 2014




Turnover for the Meat Sector in 2014 totalled €5,449 million, with Gross Value Added €861 million broken

down into (a) Processing and Preserving of Meat, (b) Processing and Preserving of Poultry meat, and

(c) Production of Meat and Poultry meat products.

Figure 6.4 Turnover in the Meat Sector, 2014 Figure 6.5 GVA in the Meat Sector, 2014


6.3 EMPLOYMENT IN THE FOOD & BEVERAGE SECTOR

According to the most recent data from the CSO, employment in the Food and Beverage sector averaged

56,600 in 2016, representing 2.8% of all those in employment.

Figure 6.6 Employment in the Food and Beverages sector, 2000 - 2016

Source: Central Statistics Office, Quarterly National Household Survey

Processing and

Preserving of Meat,

76%

Processing and

Preserving of

Poultrymeat, 8%

Production of Meat and

Poultry Meat, 16%

Processing and

Preserving of Meat68%

Processing and

Preserving of Poultrymeat

9%

Production of Meat and Poultrymeat

Products23%

51.9

4.7

0

10

20

30

40

50

60

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

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2015

2016

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usa

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s Em

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Food Beverages


SIX

Size and Structure

The Census of Industrial Production (Enterprises) 2014 release estimates that there are over 1,600 Food &

Beverage enterprises in the country. The results show that while the sector accounts for 11% of

manufacturing enterprises it employs 24% of those engaged by manufacturing overall. It is similarly

responsible for 23% of manufacturing turnover and 24% of Gross Value Added.

Contribution to the Irish Economy by ownership

The importance of the sector to the indigenous economy is analysed in Figure 6.7 which looks at the

breakdown between resident and non-resident factors across key variables in the Food & Beverage sector.

Over 80% of employment in the sector is in Irish owned units, which account for 97% of enterprise numbers.

The small percentage of Foreign-owned business, however, contributed just over half the turnover of the sec-

tor, which is explained by a small number of very large establishments operating in Ireland.

Nonetheless, Irish owned Food and Beverage exports still accounted for more than 60% of purchases by Food

and Beverage enterprises.

Figure 6.7 Distribution of key variables between Irish and non Irish ownership within the Food

and Beverage sector, 2014


The Annual Business Survey of Economic Impact (ABSEI ) is a survey of approximately 4,200 client companies of

Enterprise Ireland, IDA Ireland and Údarás na Gaeltachta employing ten or more employees in Ireland and com-

prises the Manufacturing and Information, Communication and Other Internationally Traded Services sectors. The

population of the ABSEI survey also includes a small number of High-Potential Start-Up (HPSU) companies with

employment of less than 10 where there is an expectation that their employment will exceed 10 in the following

survey. This survey which is conducted by the Department of Jobs, Enterprise and Innovation, provides aggregated

estimates for all Irish-owned and foreign-owned firms across a range of variables. As part of this survey, DJEI

collates data on Direct Expenditure in the Irish Economy (DEIE), taken to comprise wages, Irish raw materials and

Irish services. An analysis of expenditures by companies operating in Ireland highlights the close ties the FD sector

retains with the national economy in terms of DEIE.



Food & Beverage

Sector All Manufacturing

Food and Beverages as a %

of total

€m

Payroll Costs 1,959 9,248 21%

Irish Raw Materials 7,811 11,400 69%

Irish Services 1,799 5,163 35%

Direct Expenditure in the Irish Economy (DEIE) 11,569 25,811 45%

Total Expenditure 16,493 69,098 24%

IEE as % of Total Expenditure 70% 37%

Sales 21,091 98,285 21%

IEE as % of Sales 55% 26%

Table 6.1 Breakdown of expenditure in Food and Beverages manufacturing compared to overall

manufacturing, 2015

Source: Department of Jobs, Enterprise and Innovation, Annual Business Survey of Economic Impact, 2015

Table 6.1 illustrates absolute comparisons between the Food and Beverage sector and the overall

manufacturing sector in terms of this breakdown in expenditures whilst Figure 6.8 demonstrates proportional

comparisons. Direct Expenditure in the Irish Economy accounts for 70% of total expenditure in the Food and

Beverage sector. This compares favourably to the manufacturing sector when taken as a whole, where the

equivalent rate of DEIE is 37%.

The Food and Beverages sector also accounts for 70% of total manufacturing consumption of Irish Raw

Materials.

Source: Department of Jobs, Enterprise and Innovation, Annual Business Survey of Economic Impact, 2015


Figure 6.8 Breakdown of expenditure in the Food & Beverage sector compared with overall

manufacturing sector, 2015

SIX

The largest sector for Irish-owned companies is the Food & Beverage sector with sales of €13.6 billion in

2015, an increase of 2.4% from €9.6 billion in 2000.

The Food and Beverage sector accounted for 37.9% of sales in Irish-owned industries in 2015 and 26.3% of

employment.

39% of all exports from Irish-owned companies in 2015 were from the Food and Beverage sector.

The largest proportion of Irish-sourced materials for Foreign-owned firms is the Food and Beverage sector,

with 47.4% of all materials purchased sourced in Ireland amounting to €805 million spent in Ireland during

2015.

Regional Spread

The Census of Industrial Production (Local Units) 2012, shows that the Food and Beverage sector has a wide

geographic span across the country. Figure 6.9 compares the dispersion of units in the Food and Beverage

sector with other manufacturing industries

Figure 6.9 Regional dispersion of Food and Beverage sector compared to other industry, 2012

Source: CSO. Census of Industrial Production - Local Units, 2012



Table 6.2 Regional dispersion of Food and Beverage sector compared to all manufacturing, 2012

No of Local Units

Regional Authority Area

Border Midland West Dublin Mid-East

South-East

Mid-West

South-West Total

Food & Beverage Sector 109 35 54 96 76 99 51 142 662

Other Manufacturing 470 236 313 788 405 409 353 546 3520

Total Manufacturing 579 271 367 884 481 508 404 688 4182

Food & Beverages as % of Regional Total 19% 13% 15% 11% 16% 19% 13% 21% 16%

Regional % of Total Food & Beverages 16% 5% 8% 15% 11% 15% 8% 21% 100%

No of Local Units

Meat 22 15 13 13 25 20 7 16 131

Dairy 12

20*

3

77(1)

51(1)

16 7 23 66

Other Foods 71 38

54 33 98 433

Drinks 4 0 6 9 4 5 32

Source: CSO. Census of Industrial Production - Local Units, 2012

Note: (1) Breakdowns unavailable due to confidentiality.

Table 6.2 highlights the proportion of total Food and Beverage units located in all regions outside Dublin

exceeds the proportion of overall manufacturing industries located therein. Regional concentrations can be

delineated across sectoral lines with the meat sector more concentrated in the Mid-East, South-East and

Border regions whilst ‘Other Food’ concerns are more densely represented in the Dublin, South West and

Border regions.

Figure 6.10 Outstanding credit advances to Food and Beverage Sector, 2008 - 2016

Source: Central Bank of Ireland, Quarterly Bulletin, September 2016


0

2,000

4,000

6,000

8,000

10,000

2008 2009 2010 2011 2012 2013 2014 2015 2016

34

71

3,3

03

2,5

22

2,0

94

2,4

29

2,4

87

2,5

24

2,1

40

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47

5,1

48

5,2

32

4,9

05

4,1

73

3,7

95

Food and Beverages Total Manufacturing

€m

Borrowings and Capital Acquisitions

The Food and Beverage sector has significant capital requirements for both capital assets and working capital.

The level of borrowings extended to Food & Beverage companies fell by 15% year-on-year and by 48% since

their peak in 2008. The annual change for all manufacturing was lower, at 9%, though outstanding borrowings

for overall manufacturing have declined by 57% since 2008.

SIX

The Food and Beverage sector accounted for approximately 6% of total capital acquisitions by manufacturing

industries in 2016. The levels of Capital Acquisitions within the Food & Beverages sector for the past nine

years are outlined in Figure 5.11. Capital Acquisitions in the All Manufacturing category had risen by 366% in

2016 (to €5,961m) compared to a low of just €1,278m in 2010. The Food and Beverages sector contributed to

this rise in acquisitions with a 48% increase across the same timespan, to €370m in 2016 from €250m in 2010.

Figure 6.11 Capital Acquisitions in the Food and Beverage sector as part of overall

manufacturing, 2008 - 2016


6.4 FOOD PRICES

Overall, costs for consumers remained unchanged between 2015 and 2016 according to the Consumer Price

Index (CPI).

Figure 6.12 Consumer Price Index by Commodity and Year, 2001 - 2016.

Source: Central Statistics Office, Consumer Price Index Base 2016 = 100

0

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

All items Food and non-alcoholic beverages


http://www.cso.ie/px/pxeirestat/Database/eirestat/Consumer%20Prices%20Annual%20Series/Consumer%20Prices%20Annual%20Series_statbank.asp?sp=Consumer%20Prices%20Annual%20Series&Planguage=0


Food Price Monitoring Tool

Following strong volatility of agricultural commodity and food prices towards the end of the last decade, the

need was seen for higher transparency on price developments across the different stages of the food

production chains. Consequently, the Food Price Monitoring Tool was developed by Eurostat. This tool

focuses on the analysis of time series of prices throughout the food chain at a varying level of aggregation. At

both Member State and European levels.

The food supply chain (from farm to consumer) consists of a wide range of products and companies in

different markets. The process generally connects 3 main sectors: agriculture, the food processing industry

and the wholesale and retail sector. Imported agricultural products must also be taken into account.

Prices are established along the food chain through transactions between various actors in the chain (e.g.

farmers, food processors, wholesalers, retailers and final consumers). The food supply chain may be short and

simple for some food products or more complex for others. It may also differ between countries.

Source: Eurostat - Food Price Monitoring Tool

Figure 6.13 Monthly comparison of EU and Irish prices, 2015 - 2016

Confidence in the Food Chain

Assuring food safety and quality, and maintaining confidence in Irish produce is a priority for DAFM.

The Department continues to work closely with colleagues in agencies on development of food safety policy

and legislation including:

Food Safety Authority of Ireland

Sea Fisheries Protection Authority

Safefood

European Food Safety Authority

90.0

95.0

100.0

105.0

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125.0

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EU 28 - Agricultural Commodity Price Ireland - Agricultural Commodity Price EU 28 - Producer Price

Ireland - Producer Price EU 28 - Consumer Price Ireland - Consumer Price


http://ec.europa.eu/eurostat/web/hicp/methodology/food-price-monitoring-tool

SIX

Case Study

Functional foods for Optimal nutrition for healthier Ageing (OPTI-AGE)

Coordinator – Dr Michelle Clarke, UCD

Collaborating Institutions – University of Ulster.

Grant Award - €598,615 (Food Institutional Research Measure- FIRM)

Duration – 4 years

Osteoporosis, a debilitating bone condition, is a major public health problem among older

adults. The condition is widespread, with an estimated 1 in 2 women and 1 in 5 men over

the age of 50 years expected to experience an osteoporotic fracture. The associated

healthcare costs are considerable, estimated at €402 million per year in Ireland alone, and

growing. Furthermore, osteoporotic fractures are associated with disability, and increased

morbidity and mortality. Therefore new approaches are urgently needed to protect against

osteoporosis. While the roles of vitamin D and calcium in bone are well established, recent

evidence from a comprehensive study of older Irish adults, suggests that low status of

certain B vitamins increases the risk of osteoporosis.

The Department funded Opti-Age project aims to investigate the effect of intervention for 2

years with a B-vitamin supplement combined with vitamin D, versus vitamin D alone, on

bone mineral density of older adults. In addition, a vitamin enriched drink will be developed

and tested for its effectiveness in optimising B-vitamin status. Blood analysis will investigate

the mechanism linking B-vitamins with bone.

This project can provide benefit to the Irish Agri-Food Sector and the consumer via

development of new value-added functional food products aimed at achieving better bone

health in older adults. Additionally optimisation of B-vitamins could potentially slow the

development of osteoporosis on a population level, and thereby resulting in considerable

savings for the health service, and management of a growing public health problem.



7.1 OVERVIEW

The seas around Ireland (ICES Sub Areas VII and VI) contain some of the most productive and biologically

sensitive areas in EU waters. Most of the fisheries stocks within these areas come under the remit of the

Common Fisheries Policy (CFP). The 2017 fishing opportunities or TACs (Total Allowable Catches) secured for

Ireland at the December Agriculture and Fisheries Council amounts to 233,500 tonnes of quotas worth

€280million for Irish fishermen, an increase of 17,390 tonnes (8%) over 2016.

In addition, Ireland also possesses valuable inshore fisheries, particularly shellfish such as lobster, crab, whelk

and scallop. These inshore fisheries represent a very important resource base for the coastal communities

around Ireland.

7.2 SEAFOOD PRODUCTION

Irish Seafood Exports

According to the Central Statistics Office Irish seafood exports totalled €554.7 million in 2016, a slight

reduction of 2.3% on 2015 in terms of value. However, during the period 2012 – 2016 seafood exports in-

creased by 6.0% from €523.4 million in 2012.

Figure 7.1 Value of Seafood exports, 2012 – 2016


Over 200,000 tonnes of Seafood was exported in 2016, primarily to EU markets. France accounted for over a

quarter of fisheries exports at €145.1 million, followed by Spain and the United Kingdom. Exports to France

increased by 8.5% between 2015 and 2016, and have increased by over 13% since 2012. Unit price increases

of almost 8% aided the value of exports into this market.

420.00

440.00

460.00

480.00

500.00

520.00

540.00

560.00

580.00

2012 2013 2014 2015 2016

Mill

ion

s €


SEVEN

Figure 7.2 Seafood exports by destination, 2015 – 2016


The Spanish market continued to show strong signs of recovery with exports increasing by 14% between 2015

and 2016. Exports to United Kingdom also increased by 12.1% between 2015 and 2016.

The top ten export destinations accounted for over 85% of total seafood exports in 2016.

Figure 7.3 Aquaculture Production – Value and Volume, 2012 - 2016

Source: Bord Iascaigh Mhara



General market situation, 2016

The pelagic sector experienced a challenging 2016 due to depressed demand globally. Ongoing restrictions in

trade to Russia and a currency crisis in West Africa, where there is a lack of foreign reserves to pay for fish

imports, have significantly impacted demand. In addition, the Irish pelagic sector has been impacted by in-

creased competition from the Faroe Islands and Iceland, particularly for mackerel. Volumes of pelagic fish

exported from Ireland were running lower in 2016 compared to 2015 figures. Decreases in the boarfish and

mackerel quota were the main reasons for the decline in pelagic exports. The increased cost of raw material

particularly herring and mackerel has also impacted the competitiveness of pelagic processors packing value

added product for export. Sterling weaknesses in 2016 resulted in a loss of returns for companies selling into

the UK.

Total whitefish exports increased by over 10% in value terms in 2016 driven by an increase in volume. The

Spanish market accounts for the majority of total exports from this category with the UK the next most impor-

tant market for the Irish whitefish sector accounting for over 20% of export values in 2016.

Total shellfish exports progressed significantly in 2016 largely driven by a 12% increase in average unit

prices. France, remained the largest export market for Irish shellfish, showing increased trade between 2015 -

2016. Trade to Italy and Spain also increased strongly, and shellfish exports to China and Japan showed strong

growth, despite the closure of the Chinese market to Irish live crab for the majority of 2016.

Outlook for 2017

Export performance in 2017 will continue to depend on product supply. This is expected to

remain limited for aquaculture species and quota restrictions on wild species will prevent

volume growth. There was a substantial reduction in the quota for pelagic fish in Ireland,

as well as a significant reduction (-20%) in the boarfish quota, which will make market de-

velopment work in this area difficult in 2017.

Political and economic factors are likely to continue to have a very big impact on the pe-

lagic industry over the next few years. It will be important for the sector to proactively ad-

just to these macro factors and continue to develop new markets outside of Europe. Bord

Bia works closely with the sector to enhance awareness of the quality of Irish seafood for

example, Irish oysters in Asia, notably in China and Hong Kong and also Irish pelagic fish in

Japan.


Since 2010 over 650 jobs have been created in the sector primarily in the area of processing which increased

by 37.7% partially as a result of significant investment in the sector in technology and value added seafood

products.

Figure 7.4 Employment in the Seafood Industry, 2010 - 2016

0

1000

2000

3000

4000

5000

6000

2010 2011 2012 2013 2014 2015 2016

Fisheries Aquaculture Processing Ancillary


SEVEN

Table 7.1 Employment in the Seafood Industry, 2016

7.3 EMPLOYMENT

With over 11,000 jobs across fisheries, aquaculture, processing and ancillary sectors, the seafood industry

plays a vital role in the sustainable economic viability of many coastal communities across Ireland.


Full-time Part-Time / Casual Total

Fisheries 3,924 1,063 4,987

Aquaculture 558 1,269 1,827

Processing 2,415 1,534 3,949

Ancillary 1,000

Total 11,763


7.4 COMMON FISHERIES POLICY

The present Common Fisheries Policy has been in force since 1 January 2014 and will remain in place

until the next review scheduled for completion by 2022. The overarching goal of the new Common

Fisheries Policy is to end overfishing and to make fishing sustainable – environmentally, economically

and socially thus resulting in a competitive and viable seafood sector for all.

Some of the key features of the current CFP are:

Regionalisation – Under the regionalisation process, Ireland and other Member States

with mutual interests in the North Western Waters Region work closely together on an

ongoing basis to agree discard and other fisheries plans.

Phased ending of discards – The discard ban is being phased in over a number of years.

It was extended to demersal fisheries in 2016, and is will be fully implemented across all

TAC species by 2019.

Maximum Sustainable Yield (MSY) – The setting of fishing levels on the basis of the

Maximum Sustainable Yield (MSY) principal will end the practice of widespread overfishing

and mean a more viable fishing industry for the longer term. The aim of the CFP is to

achieve MSY for all stocks by 2020 at the latest so this element continues to be taken into

account by extending the list of species covered by this principal at the annual fisheries

negotiations each December when fishing levels are set for the following year.


Technical measures -Technical measures continue to be discussed both at EU level and

nationally and will be introduced to avoid and minimise catches of juvenile fish.

Hague Preferences - The Hague Preferences have been maintained and were again

invoked at the December 2016 Annual TAC & Quota negotiations. The Hague Preferences

have traditionally given Ireland an increased share of traditional whitefish stocks such as

cod, haddock and whiting in the waters off our coast when stock levels are decreasing.


7.6 FISH QUOTA MANAGEMENT

The management arrangements for quotas differ from species to species and are determined by the Minister

following consultations with industry. A key objective of whitefish quota management is the avoidance of very

early closure of fisheries through rapid exhaustion of quota. This is important because Ireland’s whitefish

fisheries are mixed and an early closure may lead to discarding of marketable fish. The fishing of pelagic

species is generally confined to the spring and autumn months.

A public consultation on a review of mackerel allocation policy between the Fleet Segments was completed in

February 2017. All relevant issues will be carefully evaluated and consideration given to submissions made in

this consultation before the Minister decides if any amendment to the policy is justified for the proper and

effective management of the mackerel fishery.

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7.7 INSHORE FISHERIES AND NATURA 2000 MANAGEMENT

7.5 BREXIT AND THE IRISH SEAFOOD INDUSTRY

Brexit poses a very significant threat to the Irish Seafood industry. On average, over one third of our current

landings are from inside the UK zone. While some benefits may accrue in terms of increasing market share in

EU Member States, overall these will be more than offset by three main threats – loss of access, substantial

loss of quota share and displacement into our zone –as well as a high level of uncertainty in the short term.

Ireland needs to ensure that Irish and EU fisheries concerns are high on the EU agenda and that fisheries are

not isolated in the overall negotiations on a new EU/UK relationship.

The Department will continue to work with all stakeholders to ensure the best possible outcome for the

seafood sector.

Fish quotas remain a public asset - The reformed CFP delegates the responsibility for

the management of quotas to individual Member States. In Ireland quotas are treated as

a public asset and are managed by the Minister in a way that does not lead to the

privatisation of quotas which would result in their concentration in large international

companies. This will protect family owned fishing vessels and coastal economies

dependent on fishing.


At national level, management and conservation of fish stocks is implemented through the provisions of the

Sea-Fisheries and Maritime Jurisdiction Act 2006.

During 2016 significant progress was made in a number of key areas which will enable the continued

sustainable growth of the industry. 122 license determinations were made by the Minister in 2016, with a

further 235 determinations expected in 2017.

DAFM has continued to work to address the backlog in the processing of aquaculture licence applications in

2016. The background to the backlog is that in 2007 the European Court of Justice issued a negative

judgement against Ireland for breaches of the EU Birds and Habitats Directives. A large element of the

judgment concerned a failure by the State to put in place adequate assessment of aquaculture licence

applications in ‘Natura 2000’ areas. In the negotiations to address this judgment, a process was agreed with

DG Environment (in 2009) and this is being implemented. The process includes data collection, the setting of

Conservation Objectives, carrying out of Appropriate Assessments and appropriate licensing, taking account

of, among other things, Natura requirements. The process is ongoing and considerable progress has been

made.

Appropriate Assessments have now been received by the Department in respect of twenty one bays –

Bannow Bay, Ballycotton Bay, Castlemaine Harbour, Clew Bay, Donegal Bay, Drumcliff Bay/Cummeen Har-

bour, Dundalk Bay, Dungarvan Harbour, Galway Bay, Gweedore Bay, Kenmare Bay, Kilkieran, Lough Swilly,

River Barrow & River Nore, Roaringwater Bay, Sheephaven Bay, Slyne Head Bay,Trawbreaga Bay, Valentia

Harbour/Portmagee Channel, West of Ardara / Maas Road and Wexford Harbour.


7.8 AQUACULTURE LICENSING

The National Inshore Fisheries Forum advises on non-quota sea-fisheries within six nautical miles of the coast.

It met on four occasions during 2016 to discuss and develop proposals concerning inshore fisheries and

interaction with Natura 2000 sites and a dedicated website now provides information on the work of the

Forums: www.inshoreforums.ie.

Following consultation during 2015, measures were applied for non-commercial pot fishing for crab and

lobster and for certain razor clam fisheries. Transitional measures for lobster fishing were extended for one

year, until the start of 2018

Appropriate assessment of planned fishing activities was undertaken for Dundalk Bay and mitigation

measures applied to manage potential risks posed to the features of Natura 2000 sites thereby mechanical

dredging and hand gathering activities. Appropriate assessment of the mussel seed fishery in Castlemaine Har-

bour also commenced and is expected to conclude in early 2017.

Management of the all-island mussel seed fishery continued in 2016, with the autumn fishing season beginning

in September. A third surveillance audit of the fishery was carried out in November 2016 as part of the

fishery’s conditional MSC (Marine Stewardship Council) certification. The audit, completed by SAI Global

Assurance Services, found that the fishery continues to operate in a well-managed and sustainable way and

provided for its continued conditional certification.


http://www.inshoreforums.ie

7.9 THE IRISH FISHING FLEET

The Irish fishing fleet can be broken down into five categories:

Specific

This category covers vessels permitted to fish for bivalve mollusc and aquaculture species. There were 143

vessels registered under this category at year end 2016.

Polyvalent

Polyvalent vessels make up the majority of the Irish fishing fleet with over 90% of total vessels registered as

polyvalent in 2016. These vessels are multi-purpose and include both smaller inshore vessels and medium or

large offshore vessels used to land whitefish, pelagic fish and bivalve molluscs.

Beam Trawler Segment

This contains vessels dedicated to beam trawling, a simple trawling method used predominantly in Irish

inshore waters (except in the southeast), where it is used to catch flatfish such as sole and plaice.

Refrigerated Seawater (RSW) Pelagic Segment

This segment is engaged predominantly in fishing for pelagic species (primarily herring, mackerel, horse

mackerel and blue whiting).

Aquaculture Segment

These vessels must be exclusively used in the management; development and servicing of aquaculture areas

and can collect spat from wild mussel stocks as part of a service to aquaculture installations.

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Table 7.1 Breakdown of Fishing Fleet as of 31 December 2016

Fleet Segment Number of Vessels Gross Tonnage (GT) kilowatts (kW)

Specific 143 2,331 12,359

Polyvalent 1,814 32,329 118,198

Beam Trawler 11 1,059 2,745

RSW Pelagic 23 23,566 46,597

Total 1991 59,285 179,899

Aquaculture 101 3,496 10,445

Source: Licensing Authority for Sea Fishing Boats

Figure 7.5 Change in Fishing Fleet numbers, 2010 - 2016

Source: Licensing Authority for Sea Fishing Boats

Specific Polyvalent

Beam Trawler RSW Pelagic

A public consultation on a review of the replacement capacity requirements under sea-fishing boat licensing

policy was completed in February 2017.

All relevant issues will be carefully evaluated and consideration given to submissions made in this consultation

before the Minister decides if any amendment to the policy is justified for the proper and effective

management of the fishing fleet.



Chapter 8: Forestry

General Forestry Situation in Ireland, 2016

DAFM is engaged in ongoing efforts to encourage afforestation and the mobilisation of the private timber

resource. A major enabler is the current Forestry Programme (2014-2020) under which a number of Schemes

were made available. Afforestation in Ireland has shown a gradual increase with payments in respect of

6,500 hectares of new forests made by the Department in 2016 while the comparable figure for 2015 was

6,293 hectares. A number of measures to assist in the development and harvesting of existing forests were

also undertaken in 2016, including the availability of a Forest Roads Scheme under the Forestry Programme,

support for the training of harvester and forwarder operators, and support for voluntary forest certification

initiatives. The Department is also engaging with the COFORD Wood Mobilisation and Production Forecasting

Group in tracking progress on the recommendations in the COFORD Wood Mobilisation report.

At EU level, the Forest Europe 2015 Report states forest area amounts to 215 million hectares in Europe,

accounting for 33.5% of total land area. In comparison to other regions in the world, only South America has

a higher percentage of forest cover (49%) than Europe. 45% of European forests are predominantly

coniferous, 36% are predominantly broadleaved, and the rest are mixed, while around 80% of the forest area

is available for wood supply. The report adds that forest area has continuously increased since 1990, and the

rate of increase is fairly stable at the European level and within the regions that are analysed in the report.

The forest area is expanding according to the defined targets in the countries with low forest cover.

Policies on forest carbon and carbon balance have gradually shifted from a focus on sequestration capacity

to a more integrated approach to sustainable forest management. The emphasis is on the full chain of

sequestration, the production of wood and wood products, and especially on renewable bioenergy. As a

result of climate change impacts, other important aspects are the adaptation of forests to these changes and

the capacity of forests to mitigate climate change.

By the end of 2012, forest cover in Ireland had reached 731,652 hectares, or 10.5% of total land area,

according to the National Forest Inventory. This compares to a European (EU-28) average of about 34%

(Forest Europe, UNECE and FAO, 2015).

The top ten counties account for just over 65% of total forest cover in Ireland; Cork (11.6%), Galway (8.1%),

Donegal (7.7%), Kerry (7.3%), Clare (7.1%), Mayo (7.1%), Tippearary (6.5%), Wicklow (4.9%), Leitrim (3.6%),

Limerick (3.6%). Cork

8.1 OVERVIEW

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http://www.coford.ie/media/coford/content/publications/2016/MobilisingIrelandsforestresources100516.pdf

http://www.agriculture.gov.ie/nfi/nfisecondcycle2012/nationalforestinventorypublications2012/

http://foresteurope.org/state-europes-forests-2015-report/#1476293409311-9ee66a45-b35d9acd-b805

Chapter 8: Forestry

Figure 8.1 Forest cover as a % of total land area in the EU-28, 2015

Source: FOREST EUROPE/UNECE/FAO enquiry on pan-European quantitative indicators

Figure 8.2 Total area of forest by county, 2012

Source: National Forest Inventory


0% 10% 20% 30% 40% 50% 60% 70% 80%

Finland

Sweden

Slovenia

Latvia

Estonia

Austria

Slovakia

Spain

Bulgaria

Czech Republic

Lithuania

Portugal

Croatia

Luxembourg

Germany

Italy

France

Poland

Greece

Romania

Belgium

Hungary

Cyprus

Denmark

United Kingdom

Ireland

Netherlands

Malta

Cork, 11.6%

Galway, 8.1%

Donegal, 7.7%

Kerry, 7.3%

Clare, 7.1%

Mayo, 7.1%Tipperary, 6.5%Wicklow, 4.9%

Leitrim, 3.6%

Limerick, 3.6%

Other, 32.5%

http://www.agriculture.gov.ie/nfi/nfisecondcycle2012/nationalforestinventorypublications2012/

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Currently nearly half of forestry land is owned by the private sector (46.8%). In 2012, over 53% (389,356

hectares) of forests were in public ownership and almost 47% (342,296 ha) in private ownership).

8.2 FOREST STRATEGY AND FINANCIAL SUPPORTS

The Forest Service promotes afforestation as a viable land use for landowners through the provision of

planting grants and payment of annual premiums. In 2016, €97.8 million of capital expenditure was invested

in forestry development, 96% of which went towards afforestation grants and premiums. An additional €4.23

million was spent on other forestry support schemes for forestry and woodland reconstitution and

development projects.

Table 8.1 Annual capital expenditure on forestry schemes, 2011—2016

Total Expenditure €m Total Afforestation

Programme* €m Forestry Support Schemes

€m

2012 €108.2 €101.6 € 6.6

2013 €106.5 €100.8 €5.7

2014 €108.1 €102.5 €5.6

2015 €102.7 €98.7 €4.0

2016 €102.2 €98.0 €4.2

Source: Department of Agriculture, Food and the Marine.

8.3 FORESTRY IN 2015

In 2015:

Roundwood harvest (including firewood) was 3.25 million cubic metres, the highest level since records

began.

3.07 million cubic metres of roundwood were available for processing in Ireland, a 3.8% increase on

2014.

Irish sawmills utilised 1.99 million cubic metres of roundwood to produce 904,000 cubic metres of

sawn timber and 154,000 cubic metres of stakes. 71% of the roundwood intake was provided by

Coillte, with the balance coming from the private forest sector and from imports.

Roundwood intake by sawmills increased by 2.9% over 2014.


Chapter 8: Forestry

Table 8.2 Roundwood available for processing, 2011 - 2015

2011 2012 2013 2014 2015

000 m3 overbark

Commercial softwood

Imports less exports 55 -18 49 68 40

Coillte 2,299 2,269 2,474 2,434 2,377

Private sector 386 343 328 447 646

Commercial hardwood

Imports less exports 0 0 -1 0 0

Coillte 1 1 2 6 3

Private sector 1 1 1 0 0

Total 2,742 2,596 2,853 2,955 3,066

Source: Council for Forest Research and Development (COFORD)

Table 8.3 Sources of softwood fibre, 2011 - 2015

Fibre source 2011 2012 2013 2014 2015

000 m3 overbark roundwood equivalent

Roundwood 2,740 2,594 2,851 2,949 3,063

Sawmill residues 829 853 897 925 949

Wood-based panel residues 115 104 110 114 114

Residue imports 34 51 108 49 47

Harvest residues 40 30 30 60 60

Post-consumer recovered wood (PCRW) 270 250 250 300 300

Total 4,028 3,882 4,246 4,397 4,533


77% of the sawn timber produced by Irish sawmills was exported. Great Britain, Northern Ireland and

France are the three key export markets for Irish sawn softwood.

The market for sawn timber in Ireland grew by 16% over 2014, largely driven by an increase in repair

and construction output.

Panel output was 769,000 cubic metres, largely unchanged on 2014. 79% of output was exported.


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Table 8.4 Uses of softwood fibre, 2011 - 2015


8.4 TRADE

In 2015, according to COFORD data exports of forest products were €355 million, a 4% decline on 2014. Wood

-based panels (WBP) accounted for €190 million, the balance comprising paper and sawn timber exports.

Export volumes of WBP declined by 8% on 2014, while exports of sawn timber declined by 2.4% over 2014.

The decline in the exports of sawn softwood was largely due to an increase in sawn softwood demand in the

Irish market.

In 2015, 54% of the Irish market for sawn softwood timber was supplied by domestic production with the

balance being imported. However, over the same period, only 3% of the Irish market for sawn hardwood was

supplied domestically.

In 2015, forest products to the value of €612 million were imported. This trade is dominated by the

importation of pulp, paper and paper-board products. In 2015, these imports represented 67% of forest

product imports into Ireland.

In value terms, over the period 2007-2015, Ireland’s share of the UK sawn softwood timber market grew by

more than 50% from 3.34% in 2007 to 5.77% in 2015. Moreover, in 2015, Irish sawmills were the fifth largest

exporter of sawn softwood timber to the UK.


2011 2012 2013 2014 2015

000 m3 overbark roundwood equivalent

Sawmilling 1,580 1,622 1,710 1,815 1,867

Round stake 116 131 117 147 169

Wood-based panels 1,374 1,276 1,407 1,377 1,370

Wood biomass energy use by the power generation and forest products sectors

572 611 704 760 796

Other uses

Horticultural bark mulch 34 40 50 40 30

Wood chip for commercial biomass use 41 30 100 100 114

Export of forest product residues 196 112 88 88 36

Other uses 115 60 70 70 151

Total 4,028 3,882 4,246 4,397 4,533

Chapter 8: Forestry

8.5 FORESTRY AND CLIMATE CHANGE

Within the United Nations Economics Commission for Europe (UNECE) region, wood energy is the principal

source of renewable energy. Most of this demand is concentrated in the European Union, driven by the EU

2020 renewable energy targets. In 2014, approximately 201 million cubic metres of the total wood harvest, or

about 16% of total removals, was estimated to have been used as wood fuel in the UNECE region.

Based on the Ireland 2016 report to the United Nations Framework Convention on Climate Change (UNFCCC),

Irish forests, including harvested wood products (HWP) derived from domestic harvest, removed 4.184 million

tonnes of CO2 from the atmosphere in 2014, after allowing for harvest and other emissions.

Figure 8.3 Timber and Paper product exports by value, 2011 - 2015

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2012 2013 2014 2015 2016

Total Exports (€000) Total Exports (Tonnes)



Between 2011 to 2015, United Kingdom, Germany and the Benelux country markets took 80% of panel

exports from Ireland, with the UK being the largest export destination, with over 69% of exports. Over the

same period, Ireland was the largest exporter of medium density fibreboard (MDF) to the UK.

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8.7 FOREST SEED AND PLANT MARKETING REGULATIONS

The Forest Service Inspectorate is responsible for implementing Council Directive 1999/105/EC on the

marketing of forest reproductive material. Forest reproductive material is a collective term to describe

seeds, plants and cuttings, which are important for forestry purposes. The aim of the legislation is to ensure

that forest reproductive material, which is marketed, is from approved suitable sources and is clearly labelled

and identified throughout the entire process from tree seed collection to processing, storage, forest nursery

production and delivery to the final forest user.

Forest plants may also be subject to the requirements of the EU Plant Health Directive, Council Directive

2000/29/EC on protective measures against the introduction into the Community of organisms harmful to

plants or plant products and against their spread within the Community.

8.8 EXPORTS OF WOOD PACKAGING MATERIAL

The Forest Service is responsible for the implementation of the FAO, IPPC, International Standard for

Phytosanitary Measures, ISPM 15, Regulation of wood packaging material in international trade (2016). ISPM

15 describes phytosanitary measures to reduce the risk of introduction and/or spread of quarantine pests

associated with wood packaging material made of raw wood, in use in international trade.

Wood packaging material, which is being exported from Ireland to most non-EU countries around the world,

is required to comply with ISPM 15. ISPM 15 thereby facilitates exports by Irish companies of goods of all

kinds, which are being transported using wooden pallets, crates, loose wood/dunnage, etc.

During 2017, a priority will be to draft and introduce national legislation under the Forestry Act 2014 to give

legal affect to ISPM 15 in Ireland.


8.6 FOREST HEALTH

The Forest Service of the Department has regulatory responsibility for implementing the forestry aspects of

the EU Plant Health Directive, Council Directive 2000/29/EC, on protective measures against the introduction

into the Community of organisms harmful to plants or plant products and against their spread within the

Community. The Forest Service implements the provisions of the Directive relating to timber, wood packaging

material (pallets, crates etc) and surveys of the national forest estate for quarantine pests and diseases.

Both Hymenoscyphus fraxineus (Ash Dieback disease) and Phytophthora ramorum disease outbreaks in

Japanese larch continue to be of concern to the Department. In September 2016, Dothistroma septosporum

(Dothistroma Needle Blight) was also found in Ireland for the first time.

Chapter 8: Forestry

Forestry Outlook in Ireland and the EU in 2017

A large proportion of Irish woodland, planted since the 1980s under State funded schemes,

is now reaching the stage where areas are suitable for thinning and in some cases final fell-

ing .

The “All Ireland Roundwood Production Forecast 2016 – 2035” highlights that, on an all Ire-

land basis, the forecast of net realisable volume (NRV) will increase from 3.95 million m3 in

2016 to 7.87 million m3 by 2035. It is estimated that almost all of the increase in production

will come from private/farm forestry owners. The mobilisation of the private timber re-

source will therefore continue to require ongoing encouragement and assistance. While the

provision of €111.6 million for the Forestry Programme in 2017 will facilitate the payment, in

2017, of afforestation grants in respect of 7,100 hectares of new forests, the availability of

funding for 110 kilometres of new forest roads and for a number of forest management ini-

tiatives is equally important for the development of existing forests. Such initiatives include

the introduction of a pilot scheme on Knowledge Transfer Groups for forestry (similar to the

KTGs in place in the Beef sector), targeted training for foresters, and support for the intro-

duction of new technologies, forest certification and Native Woodlands conservation.

A key element across Europe in recent years has been attempts to eliminate the scourge of

illegal logging. The EU has, through the Timber Regulation and its FLEGT process, brought in

a framework to regulate the trade. Ireland is playing a proactive role in this process with

DAFM as Ireland’s Competent Authority. The European forestry sector is also endeavouring

to agree a Legally Binding Agreement to enable further closer cooperation. The Forest

Europe organisation hopes, during 2017, to re-engage in this historic effort to bring SFM to

the heart of all European forestry. The UN continues to provide guidance to World Forestry

and Europe will participate in the UN Forum on Forests in 2017.


Case Study

CICLT Project: Opportunities for Irish Cross-Laminated Timber

Coordinator—Dr. Annette Harte

Collaborating Institutions – NUIG

Grant Award - €80,035 (COFORD)

Duration – 1 year

There is a demand by consumers for more durable, less labour and service intensive con-

struction materials at a competitive price e.g. cross-laminated timber (CLT). The outcome

from a previously Department funded research has confirmed that there is potential in using

Irish Sitka spruce for CLT manufacture and this presents new opportunities for Irish timber in

the home and export markets, and the potential for CLT modular floor systems – a niche

product with scalable commercial potential was identified. However, in order to develop the

product for launching on the market, further verification of mechanical performance needs

to be carried out. Therefore, the optimal production technology factors for manufacturing

CLT floor panels from Irish Sitka Spruce, will be examined.

The Department funded CICLT project aims to significantly improve the understanding of wall

-floor connection behaviour and will lead to the development of a high performance flooring

system for lowest possible costs. Additionally, this study will endeavour to further develop

the production process, by standardisation within manufacturing process to increase produc-

tion effectiveness.

The outcomes of the CICLT project will be of great interest to the existing wood-based prod-

uct manufacturers, sawmills, and building contractors to help reduce the costs and increase

the speed of construction. CICLT will help showcase the potential for the forestry sector to

source more innovative, sustainable and valued added uses for wood products.

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Chapter 9: The Environment and Rural Development

9.1 OVERVIEW

During 2016, considerable work was undertaken to continue the transition of the agriculture and forest sector

to a safe and sustainable low-carbon future as part of Ireland’s implementation of policy arising formed

Directives, international commitments and national environmental legislation.

9.2 NATIONAL CLIMATE CHANGE STRATEGY

The Climate Action and Low Carbon Development Act of 2015 provides a statutory framework to initiate a

transition to a low-carbon, climate resilient and environmentally sustainable economy. While the Department

of Communications, Climate Action and Environment (DCCAE) is the lead Department in relation to climate

change matters, there is a whole of Government approach to developing policy relating to climate change

issues. Specifically, the long-term policy vision is for an approach to carbon neutrality in the agriculture and

land use sector including forestry which does not compromise the capacity for sustainable food production.

During 2016, considerable work took place to incorporate the agriculture and forest sector mitigation

measures into the National Mitigation Plan. In this context, DAFM hosted an Open Policy Debate under the

Civil Service Renewal Plan on “Sustainability - The Challenges for the Irish Beef and Dairy Sectors”.

A draft adaptation plan for the agriculture and forest sector was published on 24 November 2016 for a nine

week public consultation, with a stakeholder workshop on adaptation in the agriculture and forest sector held

to mark the launch of the public consultation. Work continued on the adaptation plan for the marine sector.

These non-statutory draft plans were prepared under the 2012 National Climate Change Adaptation

Framework and will be reviewed once the revised statutory adaptation framework is prepared in 2017.

Contributions were made by DAFM to the first National Transition Statement which was presented to both

Houses of the Oireachtas by the Minister for Communications, Climate Action and Environment in December

2016.

Outlook

Food Wise 2025 states “Environmental sustainability and economic sustainability are equal and complemen-

tary – one cannot be achieved at the expense of the other”. Significant action has been taken to drive down

the emissions intensity of Ireland’s livestock production notably through the Rural Development Programme

(2014-2020), strongly targeted towards environmental benefits, including Green, Low-Carbon,

Agri-Environment Scheme (GLAS), Targeted Agricultural Modernisation Scheme (TAMS), knowledge transfer

programmes and initiatives such as the Beef Data Genomics Programme and the Forestry Programme.


Such strategies have led to production output increasing while GHG emissions decrease.

As required by the Climate Action and Low Carbon Development Act 2015, the National Mitigation Plan is due

to be finalised by mid 2017. The draft National Mitigation Plan and associated environmental report was

open to public consultation during March & April 2017 prior to finalisation.

The draft agriculture and forest sector adaptation plan will be updated to take account of submissions

received in early 2017 and will form the basis of the statutory plan that will be required under the revised

National Adaptation Framework being prepared under the Climate Change Act. A separate marine adaptation

plan is also being prepared and it is expected that this will issue for a period of public consultation in 2017.

As part of Ireland’s implementation of the NEC Directive, the Department of Communications, Climate

Change and the Environment developed a draft Clean Air Strategy which was open to public consultation

(during March & April 2017) as a principle stakeholder in relation to ammonia and PM emissions DAFM made

a submission. In addition, there is a requirement for Ireland to prepare a code of good practice for reducing

ammonia emissions under the Gothenburg protocol which will be developed with reference to the 2017

review of Nitrates Action Programme to ensure a holistic approach to improving nitrogen use efficiency.

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9.3 BIOENERGY

DAFM continued working with the Department of Communications, Climate Action and Environment on the

Bioenergy Plan, as a member of the Bioenergy Steering Group and its four working groups which focus on: a

renewable heat incentive (RHI); transport; supply; and research, development and demonstration.

The main contribution of the agriculture sector as seen in the Sustainable Energy Authority of Ireland report

Bioenergy Supply in Ireland 2015 – 2035 is in the supply of bioenergy feedstock, whether from biomass in the

form of wood products such as forest thinnings and wood fuel, Animal By Products (ABP) or other agri-food by

-products such as straw, slurries, potentially grass and processing waste, e.g. whey from cheese-making.

Following the suspension of the Bioenergy Scheme to facilitate the establishment of energy crops (willow and

miscanthus) for use in renewable energy production in 2015, DAFM is reviewing the scheme.

Outlook

The updated Bioenergy Plan and associated environmental report will be published during 2017 for public

consultation. In addition, an Economic Assessment of Biogas and Biomethane is to be completed. Looking

ahead, it is anticipated that forest-based biomass production, one of the main contributors of the agriculture

sector to bioenergy feedstock, is to increase to 2.2 million cubic metres by 2020.


http://www.seai.ie/Publications/Renewables_Publications_/Bioenergy/Bioenergy-Supply-in-Ireland-2015-2035.pdf


Figure 9.1 Total greenhouse gas emissions by country, 2014

Source: Eurostat, European Environment Agency

In Ireland, agriculture contributes 33% of overall emissions. This proportionate level of agricultural emissions

is uniquely high in a European context where the average is 10%. This is due both to Ireland’s natural

advantage in livestock production and a lack of heavy industry for historical reasons.

9.4 GREENHOUSE GAS EMISSIONS

Irish greenhouse gas emissions accounted for 1.4% of the EU total in 2014 (including international aviation,

indirect and excluding LULUCF) producing 60,577 tonnes of C02 equivalents. This amounted to a reduction of

6.3% since 2010 and 14.9% from 2000, the equivalent of over 10,000 tonnes of greenhouse gases.


http://ec.europa.eu/eurostat/statistics-explained/pdfscache/1180.pdf

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Figure 9.2 Greenhouse gas emissions in Ireland, 2015

Source: Environmental Protection Agency 'Ireland's Greenhouse Gas Emissions 2015'


Irish agriculture emissions for 2015 were 19.227 million tonnes CO2 equivalent (Mt CO2eq), an increase of

1.6% above 2014. The most significant drivers for the increased emissions in 2015 are higher dairy cow num-

bers (+7.7%) with an increase in milk production of 13.2%. This reflects national plans to expand milk produc-

tion under Food Wise 2025 and the removal of the milk quota in 2015. There were also increased CO2 emis-

sions from liming (+2.7%) and urea (+12.8%) application. Other cattle, sheep and pig numbers all decreased by

0.1%, 3.3% and 1.6% respectively. Total fossil fuel consumption in agriculture/forestry/fishing activities

decreased by 4.7% in 2015.

Table 9.1 Agriculture related Greenhouse gas emissions (excl. CO2 from agricultural

combustion activities) and agricultural ammonia (NH3) emissions

Year GHG (mt CO2e) NH3 (kt NH3)

Base year 1990-GHG//2000-NH3 20.145 110.74

2005 19.249 108.27

2013 18.924 103.91

2014 18.882 104.64

2015 19.227 106.88

Source: Environmental Protection Agency 'Ireland's Greenhouse Gas Emissions 2015'

http://www.epa.ie/pubs/reports/air/airemissions/ghgemissions/GHG%201990-2015%20April%202017.pdf

http://www.epa.ie/pubs/reports/air/airemissions/ghgemissions/GHG%201990-2015%20April%202017.pdf


Outlook

To-date efficiencies have lowered both the emissions intensity of the food produced and have also

contributed to reductions in absolute agricultural emissions. However, against a background of removal of

milk quotas, it will be difficult for further improvements in emissions intensity to maintain the downward

trajectory in overall emissions. Therefore the long-term policy vision for the sector is an approach to carbon

neutrality in the agriculture and land use sector including forestry which does not compromise the capacity

for sustainable food production. In this scenario it will be critical that a continuous improvement in emissions

intensity is maintained to illustrate fair ambition from the agricultural sector.

9.5 GREENHOUSE GAS EMISSION TARGETS

The EU’s Effort Sharing Decision (ESD) established binding annual GHG emission targets for member states for

the period 2013-2020. These targets address emissions from sectors which do not fall under the Emissions

Trading Scheme (ETS) and include the agriculture, transport, buildings and waste sectors.

Individual Member State emission reduction targets range from a 20% increase to a 20% reduction relative to

2005 emission levels by 2020. These national targets will collectively deliver an EU reduction of around 10% in

total EU emissions below 2005 levels by 2020 from the sectors covered by the ESD.

The ESD assigned Ireland an emission reduction target of 20% below 2005 levels by 2020. This represents a

significant challenge for Ireland due to our growing population and growing economy. This challenge is further

compounded by the high proportion of agricultural emissions arising from livestock activities and the limited

availability of cost effective mitigation options, and opportunities to expand milk production following the

abolition of milk quotas in the EU.

The proposal for an Effort Sharing Regulation (ESR) published in July 2016 provides a binding annual GHG

emissions target for Ireland of 30% below the 2005 level by 2030. While this is equivalent to the proposed EU

average target, it will be a challenge for Ireland. The proposal is detailed in terms of national targets for each

Member State and contains a number of proposed flexibilities. Under the proposal Ireland has potential to

use up to a cap equivalent to 5.6% of 2005 emissions (2.7 Mt CO2eq per annum) from Land Use, Land Use

Change, and Forestry (LULUCF) in order to meet its emission reduction requirements, based on a combined

contribution of net afforestation and cropland and grassland management activities

Outlook

The EPA estimate that by 2020 our non-ETS emissions are projected to be between 4% and 6% below 2005

levels in 2020 in contrast to a 20% target. Agriculture and Transport dominate non-ETS sector emissions

accounting for 74% of emissions in 2020 according to EPA Projections. Agriculture emissions are projected to

increase by 5% between 2015 – 2020 to 20.8 Nt Co2eq under a ‘with existing measures’ scenario.


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Figure 9.3 Projected sectoral share of non-ETS greenhouse gas emissions in 2020, With

additional measures.

Source: EPA 2017 GHG Emission Projections Report

In relation to the proposal for the Effort Sharing Regulation, Ireland has maintained a whole of government

position regarding engagement with the process to date. During 2017, DAFM will continue to work with

colleagues across the Government Departments.

9.6 THE GOTHENBURG PROTOCOL AND NEC DIRECTIVE

Ireland is a member of the Convention on Long Range Transboundary Air Pollution (CLRTAP) through which

the Gothenburg Protocol sets out targets for the control of air pollutants, including ammonia. Under the

Gothenburg Protocol, Ireland’s target is to limit ammonia emissions to 116 kilotonnes by 2010 and beyond.

Implementation of the Gothenburg Protocol is achieved through the enforcement of the EU National

Emissions Ceilings (NEC) Directive.

The Gothenburg Protocol was amended in 2012, and it repeals and replaces emission ceilings under the

previous protocol with national emission reduction commitments to be achieved by 2020 and beyond. For

Ireland, a reduction commitment for ammonia of 0.5% below 2005 levels (108.6 kilo tonnes) will apply once

the Protocol is ratified.


Agriculture, 45.0%Transport, 29.0%

Industry and Commercial, 9.0%

Residential, 14.0%Other combustion, 1.0%

Waste, 1.0%

Energy, 1.0%

https://www.epa.ie/pubs/reports/air/airemissions/ghgprojections/EPA_2017_GHG_Emission_Projections_Summary_Report.pdf


In parallel, the NEC Directive was reviewed under the EU Clean Air Package. The Commission presented its

proposal as part of the 'Air Quality Package' in December 2013. In December 2016, European Parliament and

the Council signed into European law the new National Emissions Ceilings (NEC) Directive.

Outlook

Member States (DCCAE being Ireland’s lead Department) must transpose the NEC Directive into national legis-

lation by 30 June 2018. The main implementing measure is the National Air Pollution Control Programme,

which the Member States must produce by 31 March 2019. A public consultation on a national Clean Air

Strategy was opened in March 2017.

As 98% of Ireland’s ammonia emissions are from agriculture, achieving the ammonia reduction target of 5%

will represent a challenge for Irish farming. DAFM is exploring various cost effective abatement options that

will be required to assist with these ammonia emission reduction targets. Given the structure of farming in

Ireland, which is predominantly based on the out-door grazing of ruminant animals, approaches to reduce the

emission of ammonia will largely focus on the management of nitrogen and technologies to advance

efficiencies of nitrogen use.

9.7 INTERNATIONAL RESEARCH AFFILIATIONS

Ireland participates in research on an international level providing funding to organisations such as the UN

Food and Agricultural Organisation (FAO) for Projects on Benchmarking and Monitoring the Environmental

Performance of Livestock Supply Chains.

Ireland is also engaged with the EU Joint Programming Initiative – Agriculture, Food Security and Climate

Change (FACCE-JPI) which provides and steers research to support sustainable agricultural productions and

economic growth, to contribute to a European bio-based economy, while maintaining and restoring

ecosystem services under current and future climate change.

Ireland was a founding member of the Global Research Alliance on Agriculture Greenhouse Gases in

December 2009.

To further raise the profile and importance of balancing the needs of climate change and food security Ireland

is also an active member of the Global Alliance on Climate Smart Agriculture (GASCA).

In March 2015, DAFM supported the launch of the Institute of International and European Affairs (IIEA) and

the Royal Dublin Society (RDS) Leadership Forum on Climate Smart Agriculture. This forum provided a plat-

form for key international speakers on the subject and ended its first series with a publication in June 2016 —

A Climate—Smart Pathway for Irish Agricultural Development: Exploring the Leadership Opportunity. IIEA and

the RDS are currently examining opportunities to run a second series on the subject.


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Case Study

Farming and natural resources: Measures for Ecological Sustainability.

Coordinator – Dr Daire Ó hUallacháin, Teagasc

Collaborating Institutions – NUIG, Sligo IT, TCD and DCU.

Grant Award - €891,022 (Research Stimulus Fund – RSF)

Duration – 4 years

The widespread decline in global biodiversity, including farmland biodiversity represents a

major global conservation challenge. Approximately 50% of all European plant and animal

species are dependent on agricultural practices. Ecosystem services, including provisioning

services (e.g. production of food and fibre); regulatory services (e.g. water quality, biodiver-

sity, agricultural pest control), cultural services (e.g. recreation, aesthetic) and supporting

services (e.g. nutrient cycling), have a global estimate value of €125 trillion/yr. Developing

more sustainable production systems that can maintain or increase yields, while simultane-

ously reducing the impact on the environment represents a win-win opportunity for farmers,

communities, the environment and the economy.

The Department funded FARM-ECOS project, which is led by Teagasc, aims to identify and

evaluate measures that will increase habitat quantity, enhance habitat quality and improve

ecological connectivity, from the farm to landscape scale, all of which will help halt biodiver-

sity loss and enhance the provision of ecosystem services. Once the environmental effective-

ness of a measure has been determined, the study aims to build on existing studies on cost of

implementation and farmer’s willingness to implement. The approach will result in cost-

benefit analysis of identified measures such that the appropriateness (or otherwise) of inclu-

sion in any new agri-environment measure can be determined prior to implementation at a

national scale. FARM-ECOS will therefore provide the much needed evidence to help Irish

farmers can continue to play their part in enhancing Ireland’s ‘clean, green’ image.



9.8 RURAL DEVELOPMENT PROGRAMME

Ireland’s 2014-2020 RDP was formally adopted by the EU Commission on 26 May 2015 and contains an

extensive suite of measures that address all farming sectors and support for community-led local

development through the LEADER measure. The Programme is co-funded by the EU’s European Agricultural

Fund for Rural Development (EAFRD) and the national exchequer. EU support for the RDP via the EAFRD will

amount to €2.19 billion over the seven-year Programme lifespan and will be supplemented by exchequer

funding to bring the total support available under the RDP to €4 billion.

The first amendment to the RDP covering, inter alia, a new tillage investment support measure, a new Burren

Scheme and changes to GLAS specifications, was approved by the European Commission on 23 June

2016. The second amendment to the RDP introducing new schemes (the Sheep Welfare Scheme, European

Innovation Partnerships and support for Beef Producer Organisations) and further changes to the GLAS speci-

fication in respect of tranche three was approved by the European Commission on 27 January 2017.

Table 9.2 EAFRD and national funding, Rural Development Programme, 2014 - 2020

Measure € millions

Measure 1 - Knowledge transfer and information actions €126

Measure 2 - Advisory services, farm management and farm relief services €8

Measure 4 - Investments in physical assets €425

Measure 7 - Basic services and village renewal in rural areas €6

Measure 10 - Agri-environment-climate €1,531

Measure 11 - Organic farming €56

Measure 12 – Natura 2000 payments €73

Measure 13 – Payments to areas facing natural or other specific constraints €1,370

Measure 14 – Animal welfare €100

Measure 16 – Co-operation €62

Measure 19 – Support for LEADER local development €250

Measure 20 – Technical assistance €8

Further information on each of the twelve measures contained in Ireland’s 2014 – 2020 Rural Development

Programme are included in this chapter.


Measure 1 – Knowledge Transfer and Information Actions (€126m)

Knowledge transfer (KT) discussion groups are farmer meetings facilitated by qualified advisors

that involve the transfer and exchange of information and best practice across the beef, sheep,

dairy, equine, poultry and tillage sectors. Approximately 20,000 participants in 1,193 groups

have been registered by associated group facilitators.

Under this measure, training is also being provided to farmers in the BDGP and GLAS by DAFM-

approved advisors, in order to optimise delivery of those schemes.

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Measure 2 – Advisory Services (€8m)

Continuous Professional Development (CPD) for Agricultural Advisors will allow advisors to

enhance their knowledge base on an ongoing basis and ensure that they are familiar with

the latest techniques and regulatory requirements. There are four elements to CPD: the

first element was for advisors who want to train farmers on the carbon navigator for the

BDGP and / or KT; the second element covers KT meeting facilitation skills; the third

element relates to advisor training on Health and Safety for the provision of the Farm

Health and Safety Training Programme; and the fourth element of CPD is aimed at advisors

who will train farmers in the dairy sector on the Somatic Cell Check workshop. Training for

the first two elements has been completed and is ongoing for the other two.

Animal Health and Welfare Training provides training to specialist advisors to enable them

deliver on-farm animal health and welfare advice. Animal Health Ireland is responsible for

setting up and organising the provision of specialist advice to farmers by trained veterinary

practitioners. The diseases falling within the remit of the service include Bovine Viral

Diarrhoea (BVD), Johne’s Disease (JD), Infectious Bovine Rhinotracheitis (IBR) and mastitis

in dairy herds


Measure 4– Investments in Physical Assets (€425m)

Targeted Agricultural Modernisation Schemes (TAMS II) will make €425m available to Irish

farmers for investment in infrastructure, facilities and equipment. The objective of this

scheme is to encourage capital investment in a number of target areas which will promote

increased competitiveness and sustainability in those sectors.

Under the scheme, support is provided under a suite of seven measures:

Young Farmers Capital Investment Scheme;

Dairy Equipment Scheme;

Organic Capital Investment Scheme;

Animal Welfare, Safety and Nutrient Storage Scheme;

Low Emission Slurry Spreading;

Pig and Poultry Investment Scheme;

Tillage Capital Investment Scheme.

Support under this measure is also provided for Non-Productive Investments which will be

delivered through GLAS. These non-productive investments are part of the GLAS tier 3 list

of actions and will therefore form part of GLAS applications.

Measure 7–Rural Services and Renewal (€6m)

The GLAS Traditional Farm Buildings aims to conserve and restore small traditional farm build-

ings and other structures for renewed agricultural use. This is a complementary measure to

GLAS and therefore participation in GLAS is the prime eligibility condition. This scheme is

administered by the Heritage Council on behalf of DAFM and the first tranche of applications

opened in April 2016. Further applications will be invited at regular intervals throughout the

programming period up to December 2020.



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Measure 10– Agri-environment – climate (€1,531m)

The Green, Low-Carbon, Agri-Environment Scheme (GLAS) promotes agricultural actions

that address the issues of climate change, water quality and the preservation of priority

habitats and species. GLAS is a targeted scheme with a three-tier hierarchy that is

designed to produce environmental benefits. There are currently some 52,000 in the

scheme and payments to participants are estimated at €250m annually.

The Beef Data Genomics Programme (BDGP) requires farmers to undertake a range of

actions designed to accelerate genetic improvement in the quality of the beef herd leading

to associated climate benefits such as reduced emissions intensity. Central to the

approach is the establishment and maintenance of a large-scale data collection system

from commercial suckler cow herds. This feeds into a genomics based breeding index

which ranks the efficiency of animals on a star based system. Overall, the scheme will as-

sist farmers in selecting more efficient suckler cow and bull replacements. Around 24,000

farmers are participating in the scheme and a further cohort will join as a result of it being

reopened to new entrants in April 2017.

The Burren Programme, which is an expansion of the Burren conservation scheme, has

over participants to 300 at present.

Measure 11– Organic Farming (€56m)

The Organic Farming Scheme (OFS) aims to encourage farmers to convert from conventional

farming and to apply organic methods, as well as maintain these methods after the initial

period of conversion which will be a maximum period of two years. Its overall objective is to

deliver enhanced environmental and animal welfare benefits and to encourage producers to

respond to the market demand for organically produced food. The total number of organic

farmers being funded under the RDP is just under 1,800. The OFS has now met all targets for

the present programming period in terms of intake and area.



Measure 12 –Natura 2000 payments (€73m)

This measure is not part of the current Programme, as Natura areas are targeted under measure

10. It is programmed exclusively to provide for ongoing commitments from the previous

programming period.

Measure 13– Areas facing natural constraint (€1,370m)

The Area of Natural Constraints (ANC) measure is based on the previous Less Favoured Areas

Scheme and the Disadvantaged Areas Scheme. Its objective is to compensate farmers for

income foregone and additional costs linked to the disadvantage of the area concerned. A

separate category of support within the structure of the ANC scheme will be made available

to compensate island farmers in recognition of the specific constraints faced in these areas.

Less Favoured / Disadvantaged Areas (with the exception of the islands) must be replaced by

newly designated Areas of Natural Constraint. From 2018, eligible areas must instead be des-

ignated using a set list of bio-physical criteria. The Department has commenced work on this

project and relevant technical experts are currently analysing the data in relation to the new

criteria. Once this process is complete, the data will provide the basis for the identification of

eligible areas in the ANC scheme from 2018 onwards.

Measure 14 – Animal Welfare Scheme (€100m)

The Sheep Welfare Scheme is a new measure aimed at making a meaningful contribution to

sheep welfare with particular regard to the production system and the environment in which

Irish sheep production takes place. Sheep farmers with breeding ewes can apply for payment

based on two actions they choose to undertake from a menu of options appropriate to their

flock type (i.e. hill or lowland).

The scheme was launched in December 2016 and over 22,500 applications were received. All

applicants have been advised of their acceptance into the scheme and notified of their eligible

breeding ewes numbers on which scheme payments will be based subject to the fulfilment of

all scheme criteria.


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Measure 19– LEADER (€250m)

LEADER supports actions in rural areas targeted at addressing local needs under the broad

themes of economic development, social inclusion and rural environment. Local communities

direct where this funding is provided through the formation of, and participation in, Local

Action Groups (LAGs), and the design and implementation of Local Development Strategies

(LDS).

LAGs have now been selected in all 28 sub-regional areas and funding agreements signed with

all groups (29 in total because there are 2 LAGs in the Galway sub-regional area).

Measure 16– Co-operation (€62m)

European Innovation Partnerships (EIPs) aim to create greater linkages between research

and on-farm implementation.

Locally-Led schemes for Hen Harrier and Freshwater Pearl Mussel will be brought in under

the EIP (European Innovation Partnership) framework which allows the maximum flexibil-

ity available under the regulation. A total budget of €35 million is available for these

schemes during the lifetime of the current Programme

Other Locally-Led Schemes: There is also a broadly based ‘bottom-up’ approach for other

locally-led schemes; these will be selected on the basis of open calls for proposals which

will result in certain projects being shortlisted for funding – initially for the development of

detailed project plans and then shortlisted again for full project support. Proposals will

specifically be invited for projects addressing the conservation of upland peats.

Collaborative Farming aims to address some of the structural, economic, and social chal-

lenges facing Irish agriculture such as poor land availability, farm size, work/life balance

issues, the development of skills and the knowledge base, and intergenerational transfer.

All new farm partnerships are eligible to receive a contribution of 50% towards the

vouched costs of legal accounting and advisory costs involved in the setting up the part-

nership, up to a maximum of €2,500. To date, the scheme has funded the formation of

almost 500 farm partnerships.


Measure 20 – Technical Assistance (€8m)

The main items of expenditure under this measure relate to payments for running the National

Rural Network, a GLAS evaluation study, the training of advisors on animal health and welfare and

other ancillary costs relating to technical aspects of Programme implementation.

9.9 RURAL INNOVATION AND DEVELOPMENT FUND


Following from the report of the Commission for the Economic Development of Rural Areas (CEDRA)

published in April 2014 the Department of Agriculture, Food and the Marine established the Rural Innovation

and Development Fund (RIDF). The RIDF supports proposals that promote and develop projects which stimu-

late and energise the rural economy and communities by the facilitation of locally run economic operations,

the development of a strong sense of community involvement and purpose, and by the injection of capital

into the local community.

A range of projects under the Rural Innovation and Development Fund (RIDF) linked to the recommendations

of CEDRA (Commission for the Economic Development of Rural Areas) were funded by the Department over

2016. An available fund of €1.5m was used to support the following areas:

Rural Female Entrepreneurs

Social Farming

Agri-Food Tourism and Local Markets

The funding under the RIDF has been used to support a range of initiatives. In the female rural entrepreneurs

area funding has helped develop the ACORNS training programme aimed at providing early stage female

entrepreneurs living in rural Ireland with the knowledge, support and networking opportunities to advance

the development of their businesses. The social farming area has seen funding put towards a number of pro-

jects to enable the design, development and implementation of a national social farming network and a num-

ber of model social farms across Ireland. The intention is to encourage and generate national benefits for dis-

advantaged groups and to support farm diversification in the rural community. Whilst the agri-food tourism

area, linked to actions of Food Wise 2025, has provided funds to support both the development and expan-

sion of agri-food trails in rural areas with a view to targeting specific supports relevant for the local area devel-

opment strategies.

The RIDF has been maintained at €1.5m for 2017 and it is hoped that this allocation will ensure that it is

possible to build on existing projects and support new initiatives in rural areas. In 2017 it is hoped to add an

additional scheme to the RIDF that will pilot initiatives that seek to tackle food waste generated by

commercial organisations.


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Figure 9.4 Rural Innovation and Development Fund, 2016



Statistical Annex

Output, Input and Income in Agriculture, 2015 - 2016

Source: CSO Output, Input and Income in Agriculture (Preliminary Estimate), 2015

Note: (1) Commercial sales of Wheat, Barley and Oats.

Note: (2) Financial Intermediation Services indirectly measured.

2015 2016 % Change 2015/2016

€m €m Value Volume

Livestock (incl stock changes) €3,450.2 €3,432.4 -0.5% 3.3%

of which

Cattle €2,358.0 €2,281.9 -3.2% 3.6%

Pigs €458.3 €468.0 2.1% -0.5%

Sheep €244.3 €255.2 4.5% 5.7%

Livestock Products €1,938.5 €1,855.7 -4.3% 3.4%

of which

Milk €1,871.4 €1,790.3 -4.3% 3.4%

Crops (incl. stock changes) €1,743.3 €1,769.8 1.5% -2.8%

of which

Cereals (Note 1) €262.7 €230.8 -12.1%

Forage Plants €1,004.0 €1,049.4 4.5%

Goods Output at Producer Prices €7,132.0 €7,057.9 -1.0%

Contract Work €348.0 €361.5 3.9%

Subsidies less Taxes on Products -€82.9 €0.1

Agricultural Output at Basic Prices €7,397.1 €7,419.6 0.3%

Intermediate consumption €5,021.3 €5,103.4 1.6% 1.4%

of which

Feedingstuffs €1,317.4 €1,351.0 2.5% 3.8%

Fertilisers €565.1 €508.4 -10.0% 0.4%

Energy and Lubricants €400.3 €375.4 -6.2%

Forage Plants €1,001.1 €1,046.3 4.5%

Contract Work €348.0 €361.5 3.9%

FISIM (Note 2) €62.6 €67.9 8.5%

Gross Value Added at Basic Prices €2,375.8 €2,316.1 -2.5% 5.5%

Fixed Capital Consumption €804.8 €812.7 1.0%

Net Value Added at Basic Prices €1,571.0 €1,503.4 -4.3%

Other Subsidies less Taxes on Production €1,415.9 €1,592.1 12.4%

Factor Income €2,986.8 €3,095.5 3.6%

Compensation of Employees €489.0 €507.7 3.8%

Operating Surplus (Note 2) €2,497.8 €2,587.9 3.6%


Estimate of Direct Payments to Farmers (National and EU), 2016


Note: (1) From 2015 Scheme year onwards, the payments are for Direct Payments Scheme and Areas of Natural

Constraint Scheme. Please note that in these figures BPS incorporates SPS (2014 and earlier), BPS, Young Farmers

Scheme, Greening and Protein Scheme payments.

Note: (2) Areas of Natural Constraint also incorporates Areas of Specific Constraint and DAS (2014 and earlier) payments.

€ Millions

Basic Payment Scheme (1) €1,297.262

Areas of Natural Constraint (2) €206.462

Grassland Sheep Scheme €0.005

Premia Schemes €0.003

Beef Data Programme €0.201

Beef Genomic Scheme €0.138

Beef Data & Genomics Programme €55.526

Dairy & Pig Volatility Payment €2.922

Burren Life €1.181

Disease Eradication Schemes

Bovine Tuberculosis Eradication Scheme €13.993

Brucellosis Eradication Scheme €0.000

BSE Scheme (slaughter of herds) €0.019

Scrapie Eradication Programme €0.068

Bioenergy €0.005

Rural Environment Protection Scheme €1.844

AEOS €32.624

Organics €8.053

GLAS €102.600

Sub-total without forestry premia €1,722.906

Forestry

Forestry Premia €69.178

Grand Total €1,792.084


STATISTICAL ANNEX

EU Receipts under EAGF, EAFRD and Veterinary Funds.

2015 2016

€m €m

EAGF €1,216 €1,100

EAFRD(1) €364 €383

Veterinary Fund €13 €11

Fisheries (FIFG, EFF) €3 €3

Other €3 €4

Total €1,599 €1,501


Note: (1) Includes receipts transmitted to the Department of Community, Rural and Gaeltacht Affairs.

Vote - Expenditure on Agriculture, Food and the Marine, 2016

€000s

Administration €216,193

Salaries Wages and Allowances €159,158

Travel and Subsistence €6,889

Incidental Expenses €4,521

Postal and Telecommunications €4,195

Office Machinery €24,643

Office Premises Expenses €5,529

Consultancy Services €196

Supplementary Measures to Protect the Financial Interests of the EU €634

Laboratory Equipment €10,428

Agri-Food Policy, Development and Trade €432,846

Research and Training €30,203

Development of Agriculture and Food €5,644

Teagasc €116,280

Bord Bia €32,569

Marine Institute €29,094

Bord Iascaigh Mhara €23,104

Food Aid Donations - World Food Programme €40,000

Horse and Greyhound Racing Fund €74,000

Beef Data and Genomics Programme €61,896

Beef and Lamb Quality Assurance Scheme €6,317

Sheep Technology Adoption Programme €479

CEDRA Rural Innovation and development Fund €1,480

Other €11,779


Food Safety, Animal Health & Welfare and Plant Health €77,644

Bovine Tuberculosis and Brucellosis Eradication €30,776

BSE €881

Meat Inspection Service €18,419

Fallen Animals Scheme €6,493

Animal Welfare €4,387

National Beef Assurance Scheme/Animal Identification Movement €5,317

Other €11,371

Rural Economy, Environment and Structural Changes €301,651

Rural Environment Protection Scheme (REPS) €3,587

Agri-Environment Option Scheme (AEOS) €32,119

Green Low-Carbon Agri-Environment Scheme (GLAS) €102,615

Locally Led Agri-Environment Schemes €1,973

Organic farming Scheme €8,032

Land Mobility/Early Retirement Scheme €4,406

Targeted Agricultural Modernisation Schemes (TAMS) €7,836

Forestry €103,802

Fisheries €18,997

Sea Fisheries Protection Authority €10,016

Development of Commercial Horticulture €3,865

Development of Organic Sector €1,002

Haulbowline Remediation €2,262

Other €1,138

Direct Payments €228,679

Less favoured Areas Scheme/Areas of Natural Constraints Scheme €206,466

Clearance of Accounts €723

IACS €5,905

Short-Term FEOGA Financing €392

School Milk Scheme €543

Market Volatility National Top-Up -€5

Agriculture Cash Flow Support Loan €13,914

Other €741

Total Gross Expenditure €1,257,014

Appropriations in Aid -€453,140

Recoupment of Salaries -€715

Forfeited Deposits and Securities -€117

Refunds Vets Fees -€18,382

Receipts from Vetinary Inspection Fees for Live Export -€883

Receipts from Dairy Inspection Fees -€6,800


STATISTICAL ANNEX

Receipts from Sale of Vaccines, Livestock, etc. -€709

Receipts from Seed Testing -€2,610

Receipts from Farmer Contribution toward the Cost of Eradicating Bovine Disease -€6,492

Land Commission Receipts -€595

Other Receipts -€2,592

Market Intervention -€867

Receipts for Intervention Stock Losses -€725

EAFRD Receipts -€383,009

Veterinary Fund €0

Other Guarantee Receipts (Agriculture) -€11,320

Other Guarantee Receipts (EAFG Fisheries) -€1,500

Fines, Forfeitures for Sea Fishery Offences -€187

Foreshore Acts/State Property Act Receipts -€64

EU Receipts for Fisheries Conservation etc. €0

Aquaculture Licence Fees -€204

EU Receipts for EMFF €0

European Fisheries Fund Receipts -€3,148

Sustainable Food Systems Ireland -€85

Pension levy -€12,135

Net Expenditure €803,874



Payments to Farmers by DAFM by County, 2016 (1)

Overall Payments Total Number of Recipients Average Payment

Galway €144,074,969 13,298 €10,834

Leitrim €41,617,330 3,885 €10,712

Mayo €118,989,404 12,244 €9,718

Roscommon €67,254,624 5,932 €11,338

Sligo €44,015,288 4,419 €9,960

Connacht €415,951,615 39,778 €10,457

Carlow €34,578,634 2,007 €17,229

Dublin €29,396,958 1,084 €27,119

Kildare €38,812,544 2,467 €15,733

Kilkenny €65,515,785 3,700 €17,707

Laois €32,478,025 2,724 €11,923

Longford €24,789,595 1,698 €14,599

Louth €46,134,570 2,928 €15,756

Meath €61,354,571 3,936 €15,588

Offaly €46,151,662 3,142 €14,689

Westmeath €50,452,349 3,575 €14,113

Wexford €39,505,898 2,272 €17,388

Wicklow €77,308,572 4,604 €16,792

Leinster €546,479,163 34,137 €16,008

Clare €84,693,039 6,749 €12,549

Cork €218,397,815 14,477 €15,086

Kerry €106,896,398 8,584 €12,453

Limerick €72,499,166 5,701 €12,717

Tipperary €129,912,610 7,808 €16,638

Waterford €47,228,367 2,610 €18,095

Munster €659,627,394 45,929 €14,362

Cavan €58,211,518 5,222 €11,147

Donegal €92,663,005 9,061 €10,227

Monaghan €42,065,605 4,290 €9,806

Ulster €192,940,128 18,573 €10,388

State €1,814,998,300 138,417 €13,113

Source: Department of Agriculture, Food and the Marine.

Note: (1) Includes direct payments to farmers as well as capital and other grants. Includes both EU and exchequer

related payments


2016 2017 - agriculture review and outlook for agriculture, food and the marine 2016—2017

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