May 24, 2004

 

 

EU Plan 'A Threat To Irish Farming'

 

PROPOSALS from the European Commission to cut export refunds and allow an extra 100,000 tonnes of beef imports into Europe "will seriously damage Irish agriculture because of the high export dependence of our dairy and beef industries," a farmers' leader has warned.

 

Irish Farmers' Association president, John Dillon, pointed out that the country's agriculture "is hugely export dependent because of our small domestic market compared to other European countries that have large populations and consumer markets".

 

He said that that Ireland exported more than 90 per cent of its beef and 80 per cent of its milk products both to EU and International markets.

 

"Any move to cut export refunds or increase European imports will have serious knock-on effects for both milk and beef prices and damage our two most important farming enterprises."

 

Mr Dillon said that Farm Commissioner Franz Fischler's further WTO offer of EU cuts on export refunds and more beef imports "is a move to far and a sell out of agriculture for little or no gain".

 

The IFA president pointed out that, in recent years, Europe had already undertaken two fundamental reforms of the CAP, the latest which would come into force from January 1 2005.

 

"On each occasion, farmers were told reforming the CAP would lead to a successful WTO outcome. Now we are being told further concessions must be granted to restart the WTO negotiations, all with no guarantees of success."

 

Mr. Dillon said it was not acceptable that farmers were being asked to foot the bill again for a WTO deal.

 

"Farmers have already paid a very heavy price under Agenda 2000 and again in the Fischler Mid-Term Reform on price cuts. Agriculture simply cannot take any further cuts on refunds or imports."

 

Mr Dillon said a bi-lateral-deal with the Mercosur countries, the largest exporter of agricultural produce into the EU, for an additional 100,000 tonnes of beef had major producer and consumer implications.

 

"This volume of beef could seriously destabilise the European beef market having regained consumer confidence from the various crises of the last 10 years.

 

Mr Dillon pointed out that, in the Mercosur countries, beef production took place on very large-scale ranches, which were totally different from the family farm structures in Ireland and Europe.

 

"These ranches have very low production costs, well below the costs on European farms. In addition, the large-scale ranch production in South America faces none of the costs associated with production cross compliance and traceability issues of European producers."