Agriculture and the agri-food processing sector is Ireland's most important indigenous industry. It has a key role to play in terms of direct economic activity and is one of the growth sectors designated to advance our national export led economic recovery.
In my view, this sector provides a strong base for national economic development. Currently, the overall industry has an annual output of around €24 billion and most importantly is strongly embedded in the Irish economy. It remains Ireland's most important manufacturing sector, accounting for over 6% of GDP. A total of over 135,000 are currently employed in the production of agri-food and fisheries products, which is approximately 7.4% of national employment. This sector is the primary outlet for the produce and output of the country's 128,000 family farms and includes approximately 600 food and drinks firms. Its wide geographic spread throughout the country plays a major part in sustaining rural and coastal communities.
A further important facet of the sector is the extent to which it is embedded in the economy and contributes to national prosperity. Due to its low import content and low profit repatriation levels, the net foreign earnings of this sector amount to 32% of the total net foreign earnings from primary and manufacturing industries. According to Forfas, the food industry spends over €9.5 billion on Irish goods and services, representing 71% of total expenditure in 2009, far higher than the 44% for all manufacturing industry.
This industry has a huge export orientation with exports currently over €7.8 billion. Over the past decade, the Irish agri-food, forestry and fisheries sector has competed successfully on the world stage and has demonstrated its capacity to perform as a major player in the global food and drink market. Currently, Irish food and drink produce is exported to more than 160 countries. This multi-million export industry has also undergone continuous development as well as demonstrating considerable flexibility in responding to emerging market opportunities. Over the period it has moved from a largely commodity based sector, underpinned by market support mechanisms, to a far greater reliance on consumer-focused, value-added product.
In summary, in my view the three key attributes of the sector are
It's embedded contribution to employment and exports,
It's ability to garner foreign export earnings; and
The potential of the sector to generate export led growth.
Together these provide the solid foundation for positioning this progressive indigenous industry as one of the central components of the country's export driven recovery.
In the light of this potential, the implementation of Food Harvest 2020 is a key commitment of the Programme for Government. I am personally focused on progressing the wide range of state actions needed to drive implementation of this strategic document, which was drawn up by key figures in the sector. It includes ambitious targets to be achieved by 2020 including:
Increase milk production by 50%.
Improve the value-added in the sector by €3 billion.
Achieve an exports target of €12 billion, a 42% increase.
Increase the value of primary output of the agriculture, fisheries and forestry sector by €1.5 billion.
Actions have already been taken to progress implementation. A High Level Implementation Committee (HLIC), involving the CEOs of the relevant state agencies, has been established specifically to
ensure a fully joined up effort on the part of State bodies in the implementation of FH2020;
to encourage proactive engagement by the agri-food industry and private sector with the implementation process;
and to act as a "clearing house" for issues relating to the development of the sector.
I chair this Committee and I look forward to chairing its next meeting which is scheduled for 22 June next.
I will continue to work to make substantial progress towards the achievement of the agri-food industry targets, and, this summer, I will produce a progress report which will outline the actions taken on each of the 215 recommendations in Food Harvest 2020 and identify key features of the road ahead.