Ireland could bear the brunt of the radical reforms in EU agriculture if, as is becoming clear, other member states opt for partial decoupling of food production from direct payments, the Irish Meat Association warned last night.
The IMA, which represents some of the major meat exporting plants, expressed its disappointment at the full decoupling decision, saying it would lead to a disproportionate fall in beef and lamb production here compared to other EU countries.
"In fact, it is already becoming clear that other important livestock producing member states on the continent will avoid full decoupling and opt for one or other of the partial decoupling options. This means that the brunt of these radical reforms in EU agriculture will be felt in Ireland," said IMA spokesman Mr Cormac Healy.
The meat processing industry and the Irish Creamery Milk Suppliers Association continued to voice their opposition to the full decoupling decision yesterday while the overwhelming majority of farmers and the industry in general welcomed it.
Mr Philip Lynch, chairman of Bord Bia, the Irish Food Board, said the decision would lead to improved market transparency, clearer signals to producers, and the opportunity for the Irish beef industry to build on its strengths in the European market.
Improved demand for Irish produce in the EU provided new opportunities for the Irish beef industry to build a differentiated position in key markets and to enhance returns. Success would require a deep understanding of customer needs, production to meet market requirements, and effective communication to consumers, he said.
Mr Jim Flanagan, Director of Teagasc, the agriculture and food development authority, said the decision would lead to a settled policy environment from January 1st, 2005.
A recent Teagasc survey showed that over 90 per cent of the more progressive and commercial beef farmers intended to maintain or increase stock numbers following decoupling of payments, indicating that Ireland's better farmers see the new policy as providing opportunities to increase income.
IFA President John Dillon said full decoupling would eliminate much of the bureaucracy which has plagued livestock farmers and distorted the beef sector, and instead allow farmers focus on getting viable margins from cattle production.
He said full decoupling would put all the focus on quality and threw out a challenge to the beef processors to penetrate the high priced retail markets in the UK and the continent and return beef prices to Irish farmers equivalent to those achieved by continental producers.
He said it was critical that producers of young cattle have unhindered access to European markets and the Minister for Agriculture and Food, Mr Walsh, must ensure the continuation of the live export trade.