24 September 2009
Farmgate prices risen by one third since establishment of Task Force Industry must avoid using SFP to bolster unprofitability Government needs to help reduce red-tape and bureaucracy which are drowning farmers A consistent, scientific approach needs to be taken and more needs to be done to understand the carbon footprint of red meat production
Farmgate prices have risen by one third since the establishment of the NI Red Meat Industry Task Force and for the first time since 2005, farmgate share of retail prices has exceeded 50%.
While this relatively good news was highlighted at the Task Force Conference, producers and processors were warned that the industry continues to face extremely challenging times ahead.
A big issue facing the industry is CAP post 2013 was addressed by Mr Jose Diogo Santiago Alberquerque from the EU Directorate General and while no definitive decision has been made by Brussels as yet on the future of the Single Farm Payment, delegates were advised that the industry needs to ensure that the existing practice of using this payment to cover the cost of loss-making production is eradicated.
“The original Task Force Report highlighted unequivocally the stark reality of the unprofitability of red meat production in Northern Ireland which was being bolstered by Single Farm Payment,” explained Mr Pat O’Rourke, Chairman, NI Red Meat Industry Task Force, “This was a painful message and did bring criticism from some quarters that we were painting an unnecessarily depressing picture of an industry losing £200m annually. However, it was and continues to be the Task Force’s clear view that if our industry is to be sustainable post CAP reform in 2013, then we need to ensure that red meat production is sustainable as a stand alone enterprise. Should the Single Farm Payment continue in some shape or form, we need to ensure that the existing practice of using this payment to cover the cost of loss-making production is eradicated and that it is used for the purpose for which it is paid – the production of public goods for which there is no reward in the market-place.”
The government were challenged to examine the level of bureaucracy and form-filling which is hampering the industry and make every effort to stream-line systems and procedures. “Research commissioned by the Task Force estimates that the legislative cost burden faced by Northern Ireland’s Red Meat industry is over £25m per year with the wider livestock industry facing an additional £50m due to the EU restrictions on the importation of GM feeds,” highlighted Mr O’Rourke. “The amount of directives emanating from Europe and at regional level is placing an unnecessary burden on our farmers and needs to be addressed. Instead of drowning in paperwork and forms, our farmers need to be free to focus on the business in hand ie straight-forwarding, genuine farming which will see them through these challenging times ahead.”
In looking to the future, one of the big issues facing the industry is the issue of climate change and according to the EU’s Agriculture Commissioner, Mariann Fischer Boel, every farm policy from now on will have to take into account its effect on climate change. At an informal agriculture meeting in Sweden she is reported as saying that “the tasks of putting the brakes on climate change and adapting to it are tasks for today, not tomorrow.”
“The challenge for our own industry and indeed government is to look at what we should and indeed can do and what impact this will have on us,” adds Mr O’Rourke. “In my opinion, NI beef and lamb have a competitive advantage over many of our European and Global counterpart in so far as Northern Ireland’s image in the eyes of European consumers is already one of a pure, green, natural environment from where we produce high quality beef and lamb. We should do all we can to capitalise on this perception. It is clear that much needs to be done to fully appreciate the impact of red meat production and consumption on the environment to ensure that a consistent scientific approach is taken. However, in the meantime, as an industry, we should continue to highlight the vital role red meat continues to play as part of a balanced diet.”
The Red Meat Task Force Conference outlined a range of initiatives and protocols which have been introduced by the Task Force since 2007. Copies of the presentations and full details of the protocols can be downloaded from www.niredmeattaskforce.co.uk.
