Published: Wednesday, 19th May, 2010 5:00pm

Mercosur/EU talks a threat to livelihoods

Minister Brendan Smith.

Opposition to EU moves on Brazilian beef imports in the Mercosur negotiations were top of the agenda when the IFA met Minister Brendan Smith in Dublin to discuss livestock.

IFA president John Bryan John Bryan says the minister made clear Ireland's opposition to the EU/Mercusor talks and acknowledged the threat to the beef sector from increased Brazilian and South American imports. He said it was "incomprehensible why the EU wants to hand over tariff free market access to Brazil, which will severely damage beef production in Ireland".

On the Single Farm Payment and CAP 2013, Minister Smith reassured the IFA delegation that there would be no deviation from the Irish position of insisting on full maintenance of Ireland's CAP budget and fully protecting the SFP, an IFA priority.

Seanad debate

Speaking later in the week at a special seanad debate on the future of the CAP post-2013, Minister Smith said the CAP had to "ensure security of food supply and maintain family farming in Europe".

He emphasised his commitment to ensuring that Ireland would play a central and active role in the negotiations, and emphasised the role the country had played in achieving the declaration signed up to by 22 like-minded member states in Paris last December on the importance of a strong and properly resourced CAP in the future.

"The single biggest issue now emerging is the amount of funding that will be available for the CAP after 2013, in view of pressures to reduce the EU budget, to reduce the share going to agriculture and to reduce the share going to Irish agriculture," said Minister Smith.

"The starting point for Ireland is that we see no compelling reason to change from the current historical model for determining single payments. We see the historical model as having the distinct advantage in linking the payment with level of farming activity, albeit farming activity in 2000-2002."

The minister said Ireland was in a minority of member states that took this view. "While I'm prepared to look at the alternatives, particularly if other countries move from the historic camp, there is a need to find a basis that is acceptable and fair to all member states and that meets our objectives of improved competitiveness and sustainability."

While acknowledging that the negotiations on the future of the CAP "will be difficult", the minister stressed that he is "determined to ensure the best possible outcome for Irish agriculture".

Senator Joe O'Reilly said there was a poignant background to the debate: a leading member of the agri-industry, the largest pig farmer in Europe and a great member of our county community died today. Patrick Buddy Kiernan would be well known in agricultural circles and his death is a sad backdrop to the debate, the senator said.

Moving to the CAP, he pointed out that a total of €1.3bn comes into this country every year in payments to agriculture from Europe - an extraordinary figure and one that merits preservation. "Agricultural incomes have been on the floor in recent years. The average agricultural family net income is €13,000 and that is not sustainable. It underlines the importance of the CAP to our farmers."

Senator O'Reilly said there was great potential for economic recovery through the agriculture sector, including the food sector, value-added product and our grassland based product. "Irish food has a potentially enormous market. The world population is growing enormously and feeding that population will be necessary. The potential for the Irish food brand to stand out must be great. We have a clean environment, good grassland production, a good reputation, and we have much to market."

But he had a warning too: "There are dark clouds on the horizon in that the South American states around Brazil have come together in an effort to re-enter the European market. While we have no objection to free trade and the development of their agriculture sectors, we need to be particularly vigilant given that there have been critical meetings of a number of South American states in recent weeks. Our contention must be that the same standards of veterinary and environmental compliance and animal welfare should apply in countries from which we import. This is critical to the concept of a level playing pitch that we should advocate.

"While the flood of Brazilian beef has been halted, the problem may be emerging again, with enormous implications for the beef industry here. The bottom line for Ireland must be the preservation of the single farm payment. If we need to concede a little, the wise money suggests we should concede that we might look at having a maximum payment, not modulated payments. That would involve the maximum figure anybody could receive, but we would be equally conscious of the need to maintain a sensible minimum payment in order to preserve basic incomes."

The senator believes the bottom line for us is retention of the single farm payment, although he thought maximum and minimum payments were possible. "There is a case for considerable investment in innovation. We're not doing enough in the food sector in terms of investment in innovation and research. I appeal to the minister to take these considerations on board as we develop an Irish position."