Brexit would be bad for business
Leading figures in the agriculture industry discuss the implications of a Brexit for agri-food sectors.
The pending referendum on the UK’s membership of the EU and the potential implications of a ‘Brexit’ for Northern Ireland’s agri sectors galvanised the contributions made by those making up the discussion panel at the 2015 agendaNi agriculture and food conference.
Young Farmers’ Clubs of Ulster (YFCU) president Roberta Simmons, while having some personal doubts about the general thrust of the current European project, felt that local agriculture has benefitted from EU membership.
She highlighted the formal recognition given to young farmers under the new Common Agricultural Policy (CAP) arrangements. “This marks a new chapter in the way that Brussels deals with the farming sectors,” she said. “Agriculture needs young blood. The average age of farmers in Northern Ireland is far too old at the present time.
“There is a tremendous willingness on the part of young people today to commit to a future in agriculture and our rural industries. Anything that can be done to enhance the level of training for young farmers will allow them to carry out their jobs more efficiently and will make them more employable outside of production agriculture, should they opt to look at other career opportunities down the line.”
Ulster Bank agricultural manager Cormac McKervey claimed that a Brexit might well have an adverse effect on the prospects for farming and food in Northern Ireland. “Currently, local farmers receive over £200 million annually in direct payments from Brussels,” he said. “The elephant in the room is this: will the UK exchequer agree to make a comparable level of support directly available to farmers in Northern Ireland, should the UK exit Europe?
“In my opinion this just won’t happen.”
Wilson’s Country Potatoes’ Chairman Angus Wilson highlighted the trade problems that would be associated with a UK exit from the EU. “Under such circumstances, Northern Ireland would be caught between a rock and a hard place,” he said.
“In practical terms, agriculture and food must be looked upon as all-island industries. Large numbers of store cattle traditionally cross the border to be finished in Northern Ireland. Where sheep are concerned, the net movement is in the opposite direction. And even in our own business, potatoes move from the north to the south and vice versa on a regular basis.
“Potentially, a Brexit would do untold damage to these trade patterns.”
Fair Price Farming NI’s Charlie Weir said that Europe must act to deliver sustainable returns for milk producers. “This is the question that goes to the very heart of the European debate. The dairy industry is in deep recession at the present time. Yes, an EU aid package has been agreed. But it is only scratching the surface in terms of what’s really required.
“The reality is that Brussels must act decisively to put a real safety net under producer milk prices. And the only way this can be achieved is through the introduction of realistic intervention support measures.”
All the members of the panel agreed that farming and food in Northern Ireland could look forward to a bright future. But this did not rule out the distinct possibility of challenges, such as market volatility, throwing a spanner in the works from time to time.
Cormac McKervey expressed the view that the banks will continue to support viable farming businesses. “The fact that DARD is on track to have the highest ever percentage of Single Farm Payments paid out in the run up to Christmas is extremely positive,” he claimed. “This has helped to boost cash flows on all farms.”
“But we also recognise that every dairy farm income will come under pressure over the coming months. Our aim is to work with clients on an individual basis so as to get them through the period ahead in the most feasible way possible.”
Roberta Simmons confirmed that the YFCU had just launched its Strategic Plan, covering the period up to 2018. This will see the organisation build on the core development successes that it has secured over recent years.
“As part of this process YFCU is in the throes of finalising a new land mobility service, which will allow young farmers to develop strong, working relationships with those older producers who have no direct line of succession,” she explained.
“This issue goes to the very heart of maintaining a sustainable farming sector here in Northern Ireland. Research into the feasibility of the envisaged service is already underway. We have also forged strong links on this matter with the Ulster Farmers’ Union. But to say there is a need for the service is an understatement, given the success of the pilot schemes that have already been launched in the Republic of Ireland.”
Commenting on the future prospects for Northern Ireland’s agri-food sectors as a whole, Simmons confirmed that YFCU had been fully involved in the development of the Going for Growth strategy, which had been agreed by the Stormont Executive.
“And this will remain one of our key priorities moving forward,” she said.
Angus Wilson pointed out that food companies in Northern Ireland must invest in innovative marketing strategies, which should include the development of branding opportunities.
“In our own case 2016 will mark the 30th anniversary of Wilson’s Country,” he said. “During this period the potato industry has re-invented itself to reflect changing retail and consumer eating trends. The love affair between the average man or woman on the street and potatoes continues. But we are not taking anything for granted.
“Consumers also want convenience and new taste sensations. For our part we have met this challenge head on with the use of new potato varieties plus a host of new and versatile packing options. Locally grown potatoes have a great story to tell. Nutritionally, they are much more than a source of starch. Research carried out here in Northern Ireland has confirmed that they are also valuable source of vitamins and dietary fibre.
“Potatoes also tick all the boxes when it comes to provenance and traceability. But the job is far from finished. The entire workforce at Wilson’s Country is committed to putting the consumer first and this same challenge faces every food packing and processing company.”
Charlie Weir summed up proceedings by confirming that 2015 had been a very challenging year for agriculture in Northern Ireland. “The markets are not delivering for primary producers at the present time,” he said.
“It’s up to Europe to step into the breach. Farmers are the weakest buyers and the weakest sellers in the agri food chain. For this reason it is crucially important for primary producers to receive the levels of support which they deserve. And, unfortunately, this is not the case at the present time.”
“will the UK exchequer agree to make a comparable level of support available to farmers in Northern Ireland should the UK exit Europe?”
