Agri-food faces challenges of 'competitiveness and resilience' - report
The agri-food sector faces challenges around "competitiveness and resilience", as well as meeting a number of environmental targets over the coming years, Teagasc has said.
Teagasc has published a new series of 'Enterprise Roadmaps' looking forward to 2030 across seven agricultural enterprise areas.
These are: dairy; beef; sheep; pigs; tillage; horticulture; and forestry.
These documents provide an update to the previous version (published in 2020) and are a “best estimate projection” of where each sector is headed.
Kevin Hanrahan, head of the Teagasc rural economy and development programme, said the agri-food sector continues to be "well-positioned" to supply high-quality food to adjacent and global markets from a strong environmental platform.
He outlined in an overview document looking forward to 2030 that the agri-food sector "faces challenges around competitiveness and resilience, as well as meeting a number of environmental targets over the coming years".
Market and policy outlook
The document notes that Ireland’s Food Vision 2030 strategy, Ireland’s Common Agricultural Policy Strategic Plan (CSP) and Climate Action Plan 2024 are "consistent with EU policy and law" and will "shape the policy landscape for agriculture and food in Ireland for the medium-term".
"The medium-term market outlook to 2035 is for continued growth in the global demand for food in line with current global population growth projections," Teagasc said.
"Prices for ruminant meat commodities are expected to remain strong in the medium-term as global breeding inventories are rebuilt.
"However, over the longer term, real prices are expected to decline.
"Growth in global demand for dairy commodities and slowing growth in production and trade will, over the medium-term, support real dairy commodity prices and milk prices received by Irish farmers."
Teagasc said the medium-term market outlook for higher value products and food ingredients is for continued growth, particularly in middle income economies.
Modernised
Teagasc said over the last decade, the Irish agriculture and food sector has "grown, developed and modernised".
However: "The modest income and particularly the ageing population involved in agriculture is a cause of concern, across all of the major sectors of Irish agriculture, as it will limit access to capital and adoption of technology.
"Agriculture will thrive best in a future environment where a cohort of highly-educated professional farmers can advance their businesses to generate an income that is comparable to other careers.
"This will ensure that the sector will attract highly educated young people towards a farming career and within the sector, there will be capacity to reinvest in and adopt new digital and automation technologies.
"Supporting a further cohort of part-time farmers will also be key to having a dynamic modern agriculture open to new aspects of diversification and will enhance rural communities into the future."
Teagasc dairy roadmap
The dairy sector is currently the largest and most specialised sector of Irish agriculture, Teagasc's roadmap to 2030 for dairy states.
It provides income for over 17,000 dairy farm families who generally farm on a full-time basis, according to Teagasc.
"Overall the sector faces significant challenges in the areas of price and income volatility, generational renewal and the increasing cost of environmental compliance."
In its dairy roadmap, Teagasc outlined key performance indicators related to farm system and sustainability, breeding and animal health, and forage, concentrates and fertiliser.
It has given current dairy farm metrics and future targets in these areas, including for increasing the percentage of slurry applied using low emissions equipment, sexed semen usage, and improving milk output and quality.
Teagasc said that the medium-term prospects for the Irish dairy industry "remain positive where demand for grass-fed dairy products continues to grow".
"Market demand continues to grow for traditional and novel grass-fed dairy products," it said.
"Teagasc will provide innovative solutions for new products and novel processing technologies."
Teagasc added: "The public are becoming increasingly concerned with issues regarding animal welfare.
"Teagasc is developing tools and transport guidelines to enhance animal health and welfare."
Teagasc beef roadmap
Teagasc said that beef farming accounts for one-third of overall agricultural output, due partially to a strong period of increased prices.
"Approximately 80% of Irish farms carry some beef animals with 55% of Irish farms considered to be specialist beef producers," Teagasc said.
"In recent years there has been an increase in the volume of beef produced from animals born in the dairy herd (now approximately 60% of the total) in comparison to progeny from the suckler herd.
"We have seen a decrease in the number of suckler cows over the same period."
In its report, Teagasc has outlined current key beef metrics and future targets for a number of systems, including suckler calf to weanling and dairy calf to beef.
Market outlook
Teagasc said in the medium-term, market outlook for beef is "positive due to reduced output of beef in the UK and Europe and a strong live export market".
"Beef farm input costs have remained stable, while output values have risen due to a strong export market," Teagasc said.
"As a result, farm income from production is expected to grow.
"However, the sector remains highly dependent on income support measures to maintain profitability."
Teagasc said it will continue "integrating research and knowledge transfer efforts" in order to enhance the economic sustainability of the Irish beef sector.
"Our focus remains on lowering production costs, improving performance and sustainable output, and accelerating genetic progress at the farm level."
Teagasc said that encouraging younger farmers to enter beef farming is "challenging due to low income prospects and the growing demands of off-farm work".
It added that beef farming "needs to be more carbon efficient and to lower overall carbon emissions" and that it is working with farmers to make "sustainable changes while maintaining productivity".
