Agriculture grows €326m for economy

DIRECT payments totalling €84 million for more than 6,500 Clare farmers generated almost four times more in aggregate agriculture-related output, totalling €326m, for the local economy in 2012, according to a new IFA report.

 

One of the key findings in the study is that each €1 of direct support for cattle and sheep farmers had a strong multiplier effect, underpinning more than €4 of aggregate output in the economy.

The report, prepared by UCD Professor of Agriculture and Food Economics, Alan Renwick, highlights the deeply embedded nature of the two sectors in the Irish economy, in terms of their high spend on inputs and services in the local economy, and their very strong export orientation.

Entitled the Importance of Farming and the Agriculture Industry, the study revealed the value of agricultural output was €189m and this in turn generated an additional economic spin-off of €138m from the purchase of raw materials, such as fertiliser, meal and other inputs.

The official statistics showed the value of agricultural exports arising from agricultural output in the county was €268m, while the value of the forestry output was €9m.

Clare agriculture supports thousands of jobs in the rural economy, both directly in food and drink processing and also in the wider agri-industry, including input suppliers, agricultural contractors, jobs in auctioneering, transport and engineering, accountancy, legal, veterinary and other advisory services.

In fact, the study estimates 1,481 food and drink processing jobs are supported by the agricultural output of the county, with up to 4,285 relying on agriculture in the Mid-West.

The report cites the key agri-employers in the county including Clare Marts Sixmilebridge, Kerry Agri-Business, Donnellan Fencing, Burren Smokehouse, Malbay Seafoods, SeaLyons Seafood, Whelans Garage, Conor Engineering, PJ Ryan Tractors, Michael Boland Engineering, Bobby O’Connell and Sons Limited, Gearys Garage, Collins Haulage, Ennis, Kelly Brothers Clondegad, Farm Relief Services, TASS Steel Fabricators, Summerhill Meats, John Kelly Meats and Ennis Abattoir.

It also produced some interesting figures on the farm structure in the county, which includes 75,687 beef suckler cows, the second-highest in Munster after Cork, which is a much bigger county, and has 90,925.

The average farm size in Clare is 33 hectares (81 acres) and the total land area farmed is 213,627 hectares. In addition to 26,671 dairy cows, there are 14,142 ewes, 1,002 sows and 5,910 poultry. Land under private forestry totals 28,718 hectares.

The €84m in direct payments in 2012 includes €49m in Single Farm Payments, €29m in REPS/AEOS/DAS/SCWs and forestry premium, €5.5m.

An analysis of cattle farming in Clare shows 80% of the cattle output is sold in the county and 90% of the inputs are sourced locally.

Clare IFA chairman, Andrew Dundas said the report showed direct payments for the cattle and sheep sectors delivered excellent value of money. He noted the report underlined the importance of maintaining direct payments for what the IFA categorises as productive farmers.

IFA leader, John Bryan said this report identifies the significant geographical spread and important economic impact of the beef and sheep sectors.

“The cattle and sheep sectors deliver a real return in every rural parish, generating economic activity and providing employment across the country. Combined, the sectors have an unparalleled reach in terms of their contribution to the rural and wider economy,” he said.

The IFA president said the report shows cattle and sheep farming are low-income enterprises, averaging €8,000, cattle rearing, and €12,000, sheep farming, over the last five years.

Mr Bryan said he would be presenting this report to the Taoiseach Enda Kenny, the Minister for Agriculture Simon Coveney and the Government as the basis for underpinning IFA’s campaign to secure a positive outcome to the CAP Reform negotiations and especially national co-financing under Pillar 2 Rural Development for the sectors.

Meanwhile, IFA officers are holding meetings with the Irish Members of the European Parliament as part of the association’s campaign to secure an outcome on CAP Reform that works for Irish agriculture and supports productive farmers.

They will be lobbying MEPs to ensure Minister Simon Coveney builds on the work of last month’s Farm Council meeting and holds out firmly against the commission proposals on flattening and regionalisation.