THE AGRICULTURE sector is showing “green shoots of recovery”, according to Teagasc, the agriculture and food development authority. Its most recent report predicted farm output this year would increase in value by over €300 million.
The economic research department at Teagasc said downstream sectors involved in food processing would also benefit.
“Irish agriculture is highly export focused and an improvement in prices internationally is being reflected in higher prices at farm level,” said the report.
“Developing countries have emerged from recession quickly, and in general this has set international agricultural commodity prices on an upward trend.
“The sterling and dollar exchange rates are important for the international competitiveness of the sector, and the depreciation of the euro against both of these currencies in 2010 has also been of benefit.”
Teagasc said the source of the increase in output could be attributed to the recovery in the dairy sector, with Irish dairy farmers likely to receive among the highest prices in Europe this year.
The report said dairy farmers’ gross margins should increase by 70 per cent this year, and predicted lower input costs.
It added that sheep farmers should see their margins increase by 28 per cent in 2010.
The report came as Minister for Agriculture Brendan Smith formally sought approval for an advance payment of the 2010 Single Farm Payment.
“Mindful of the series of adverse weather conditions experienced by farmers over the last 12 months, particularly the widespread flooding and the very severe frost, coupled with the general financial crisis, I wrote to Commissioner Ciolos requesting formal approval to allow an advance of the single payment be made with effect from October 16th – this is the earliest date an advance payment can be made.”