The Irish Beef Industry has been going through turbulent times recently, most notably because of the proposed Mercosur deal and the prices farmers receive for their cattle. We haven't even reached Brexit yet, and are still weeks out from the latest withdrawal deadline, and beef farmers are at their wits end. But how has it got to this and can farmers cope if there is a no-deal Brexit?
Farmers' incomes are under threat, not just because of the reasons outlined above, but also because of the threat to grants which keep small and medium farms in business. The recent EU elections have seen the status quo remain in the European Parliament, with parties of the right keeping their large dominance of the union. There has been some debate surrounding the EU's agricultural plan over the course of the previous five year parliament, particularly regarding the EU's farm subsidy. Now that the elections are over, the EU government could proceed with plans which could see a standard grant rolled out across the EU nations. A standard rate of union support would benefit the economically weaker nations within the EU, as it would more than likely be calculated as a sort of average of the agricultural industries of all the nations within the EU. Let's say that average maximum payment is around €50,000, that would be worth a lot of money in the like of Poland or the Baltics, but it could cripple the Irish agriculture industry.
Another threat to Irish beef farmers is the Mercosur deal, which I'm sure we've not heard the last of, despite is being rejected in the Dáil, following a motion of rejection from Sinn Féin. However the government supported the deal, and should a revised deal come back before the Dáil it would be interesting to see which side Fianna Fáil take, or if they abstain to facilitate a new deal. It can't be ruled out, as Fianna Fáíl's European party, ALDE, supports the Mercosur deal.
It proposes that 99 million kgs of South American beef can be imported into the EU every year. This quantity will not have a massive affect on the Irish beef market, as many Irish consumers have a keen eye when it comes to the country of origin of their meat, though it could creep in in the form processed foods, such as burgers, meat pies, and sandwich meat. But the biggest concern is that this cheap beef could replace Irish beef on mainland Europe. Ireland is already in need of a new export market, perhaps as far afield as the Baltics, where massively urbanised populations, poor land quality, and high rates of forestation, leave a demand for foreign beef, but Brazilian beef threatens these prospects. The Euro may have unified the unions currencies, but there are still different values to the Euro in each state, €1 goes a lot further in Riga than Dublin, meaning that it will be hard to compete with cheap beef.
Farmers have come to their wits end at this stage, even before Mercosur reappears or Britain leaves the EU, and it came to a head at factories this week. Sending a cow to a factory means one thing for farmers, a lower price. Most farmers prefer to go to the local mart where their animal is sold to the highest bidders, than to a factory where there is a standard price. A farmer usually goes to the factory to save time, as a mart can take several hours, or to drop off a mad cow, who could be a risk at a mart. Beef farmers believe that the prices at the factories are unfair and unsustainable for small farmers, thus the protests.
With such dark clouds on the horizon for farmers, in terms of Brexit, there should be at least some sunshine for farmers in the here and now. It's a tough job, with great risk both physically and financially, one calf dying of illness could mean that a farmer is anywhere up to €1,000 down at the end of the year. While the Minister for Agriculture is busy trying to push through the Mercosur deal, perhaps he should focus on finding foreign markets in case of a crash out Brexit, getting his MEPs to denounce the Mercosur deal, and ensuring farmers can make a living. But while parties of the right remain in power in both Ireland and Europe, the future for beef farming looks bleak. Unless of course you're a rancher.
Farmers' incomes are under threat, not just because of the reasons outlined above, but also because of the threat to grants which keep small and medium farms in business. The recent EU elections have seen the status quo remain in the European Parliament, with parties of the right keeping their large dominance of the union. There has been some debate surrounding the EU's agricultural plan over the course of the previous five year parliament, particularly regarding the EU's farm subsidy. Now that the elections are over, the EU government could proceed with plans which could see a standard grant rolled out across the EU nations. A standard rate of union support would benefit the economically weaker nations within the EU, as it would more than likely be calculated as a sort of average of the agricultural industries of all the nations within the EU. Let's say that average maximum payment is around €50,000, that would be worth a lot of money in the like of Poland or the Baltics, but it could cripple the Irish agriculture industry.
Another threat to Irish beef farmers is the Mercosur deal, which I'm sure we've not heard the last of, despite is being rejected in the Dáil, following a motion of rejection from Sinn Féin. However the government supported the deal, and should a revised deal come back before the Dáil it would be interesting to see which side Fianna Fáil take, or if they abstain to facilitate a new deal. It can't be ruled out, as Fianna Fáíl's European party, ALDE, supports the Mercosur deal.
It proposes that 99 million kgs of South American beef can be imported into the EU every year. This quantity will not have a massive affect on the Irish beef market, as many Irish consumers have a keen eye when it comes to the country of origin of their meat, though it could creep in in the form processed foods, such as burgers, meat pies, and sandwich meat. But the biggest concern is that this cheap beef could replace Irish beef on mainland Europe. Ireland is already in need of a new export market, perhaps as far afield as the Baltics, where massively urbanised populations, poor land quality, and high rates of forestation, leave a demand for foreign beef, but Brazilian beef threatens these prospects. The Euro may have unified the unions currencies, but there are still different values to the Euro in each state, €1 goes a lot further in Riga than Dublin, meaning that it will be hard to compete with cheap beef.
Farmers have come to their wits end at this stage, even before Mercosur reappears or Britain leaves the EU, and it came to a head at factories this week. Sending a cow to a factory means one thing for farmers, a lower price. Most farmers prefer to go to the local mart where their animal is sold to the highest bidders, than to a factory where there is a standard price. A farmer usually goes to the factory to save time, as a mart can take several hours, or to drop off a mad cow, who could be a risk at a mart. Beef farmers believe that the prices at the factories are unfair and unsustainable for small farmers, thus the protests.
With such dark clouds on the horizon for farmers, in terms of Brexit, there should be at least some sunshine for farmers in the here and now. It's a tough job, with great risk both physically and financially, one calf dying of illness could mean that a farmer is anywhere up to €1,000 down at the end of the year. While the Minister for Agriculture is busy trying to push through the Mercosur deal, perhaps he should focus on finding foreign markets in case of a crash out Brexit, getting his MEPs to denounce the Mercosur deal, and ensuring farmers can make a living. But while parties of the right remain in power in both Ireland and Europe, the future for beef farming looks bleak. Unless of course you're a rancher.
Comments
Post a Comment