Michael Moynihan
Ceist:290. Deputy Michael Moynihan asked the Minister for Agriculture, Food and the Marine how the agrifood sector has been strengthened and developed since 27 June 2020. [54396/23]
Amharc ar fhreagraThursday, 7 December 2023
Ceisteanna (290)
Freagraí scríofa
Over the past three and a half years the country, and the agrifood sector in particular, has faced three significant challenges: the closure of the hospitality and food service sector for long periods worldwide during COVID-19; the disruption to trade with our nearest and most important agrifood trading partner as a result of Brexit; and the significant increases in input costs, especially fertiliser and feed, as a result of the illegal Russian invasion of Ukraine. Despite these disruptions, the agrifood sector has continued to strengthen, demonstrating its resilience.
2022 saw record agrifood exports valued at €19 billion, up 32% in value from €14.3 billion in 2020. Agrifood exports account for 9% of all the merchandised goods exported from Ireland. The Irish agrifood sector is globally orientated, with approximately 90% of Irish beef, sheepmeat and dairy produce exported each year. In 2022, we exported more than one billion euros in value of each of the following: fresh or chilled Irish beef, natural butter, cheese and Irish whiskey.
Preliminary Central Statistics Office (CSO) results indicate that in 2022, the agrifood sector accounted for 6.7% of GNI*, up from 6.2% in 2021 and 6.4% in 2020. CSO data also indicates the value of output at producer prices or farm gate prices rose from €8.4 billion in 2020 to €12.3 billion in 2022, an increase of 47%. At the same time the overall income or operating surplus in agriculture increased from €3.2 billion to €4.7 billion, an increase of 50%. These increases in agriculture income came at a time when fertiliser prices more than doubled in price, energy costs increased by almost 70% and animal feed cost increased by over 50%.
On the policy side, Food Vision 2030, our shared stakeholder-led strategy for agrifood, developed for the sector by the sector and launched in 2021, has the potential to transform our agriculture, food, forestry and marine sectors. Food Vision 2030 aims for Ireland to be “A World Leader in Sustainable Food Systems”. In demonstrating the Irish agrifood sector meets the highest standards of sustainability – economic, environmental, and social – this will also provide the basis for the future competitive advantage of the sector. By adopting an integrated food systems approach, Ireland will seek to become a global leader of innovation for sustainable food and agriculture systems, producing safe, nutritious, and high-value food that tastes great, while protecting and enhancing our natural and cultural resources and contributing to vibrant rural and coastal communities and the national economy.
The Irish CAP Strategic Plan (CSP) 2023-2027 has the highest ever available budget of €9.8 billion, and more than 60% of that (just under €6 billion) is targeted at supporting farm incomes. The CAP objectives aim to improve the economic, environmental and social sustainability of the agricultural sector, and we have seen in this period a real shift in focus towards supporting farmers for practices that benefit the climate, environment and biodiversity. In Ireland’s case, a significant element of our CAP funding is targeted towards delivering on environmental and climate objectives. At EU level we have the second highest amount of CAP funding dedicated to environmental action, almost 70% of the Pillar 2 Rural Development funding, including a new agri-environment scheme, ACRES, and a five-fold increase in funding for Organic Farming.
In addition, I should mention the signing into law of the Agricultural and Food Supply Chain Bill 2022, in July 2023, will bring increased fairness and transparency to the agricultural and food supply chain. The independent Office will be known as An Rialálaí Agraibhia will have a particular regard to farmers, fishers and small food businesses and I am delighted that it will come into operation next week.
The economic performance of the agrifood sector continues to strengthen and through the new CSP and our ambitious policy objectives, I will continue to lead the development of the agrifood in collaboration with the sector.