THE FUNCTIONING OF THE IRISH FOOD SUPPLY CHAIN, AND THE VITAL IMPLICATIONS FOR FOOD SECURITY.

NOEL BARDEN

The strength of the Irish can be evaluated by looking at the industry’s response to the coronavirus, according to Noel Bardon.

The panic buying seen at the beginning of the lockdown measures in mid-March was not unique to Ireland. Thankfully, for the vast majority of consumers in the developed world at least, the commercial sector continued to fill the demand for almost all essential food and groceries. The readiness of the food supply chain to cope with unexpected difficulties in their delivering of products to its customers cannot be overlooked in these unprecedented times.

As a small country reliant on the import of fresh fruit and vegetables, the haulage sector is essential for smooth functioning of the food supply chain. The economic impact of the Covid-19 pandemic threatened the “financial viability of haulage businesses due to the overall drop in freight volumes or cash flow problems may see some haulage operators closing” according to a report by the Department of Business, Enterprise & Innovation. The closure of these logistic firms could jeopardise this essential component in the timely delivery of goods, particularly perishables, arriving through Irish ports.

This reliance on haulage for our import of European produce is also faced with the risk of a nodeal Brexit. Should the land border with the UK stop, restrict, or delay the transport of food from the EU, producers may find it impractical to export to Ireland this way. Alternative routes by sea may add time and cost to the transfer of goods between Dublin and the continent. However, this scenario could have a silver lining for domestic producers. Horticulturalists at home would be in a better position to compete with European rivals in a move which may leave the country with an increased security in the supply of fruit and vegetables, areas of production that have not reached their full strength. This move to domestic production would take funding, but more importantly time, something such plans would be unlikely to have.

The safety and welfare of those employed by producers and processors is another area where the supply chain was stretched unexpectedly over the past few months. Many producers and processors took for granted the ability of processing plants to function at capacity indefinitely, with declining market outlook being the primary factor limiting output. The closure of meat plants in the midlands in August, as well as the shortage of fruit pickers in April, exposed the bottleneck in the food supply chain when adequate labour cannot be sourced. Expanded workers’ rights and employee welfare legislation may be needed to strengthen these aspects where weaknesses could be observed over the past few months.

The Irish agri-food sector has seen a noticeable drop in demand for food and beverages, mainly meats, as restaurants and other high value outlets for produce closed around the world. This highlights

Pgi Status Faces Mixed Expectations

HANNAH

Woods

the necessity of Irish produce in filling the food security needs of other nations around the world. It also shows the need for our agri-food industry to strengthen its relationship with consumers in markets outside of restaurants and engage with retailers in marketing Irish produce for home meal preparation.

In whole, Ireland’s food and drink industry weathered the unanticipated disruptions to the sector reasonably well. Areas of improvement have been identified that, if acted upon, will allow the supply chain to improve its resilience.

With EU Protected Geographical Indication (PGI) status for Irish grass-fed beef likely to be assigned in the coming weeks, Hannah Woods discusses the tangible benefits to farmers and industry from such schemes, along with potential issues arising from the proposed inclusion criteria of the PGI.

With the final national opposition procedure submitted to the European Commission, we now look to the promise of an EU Protected Geographical Indication (PGI) status for Irish grass-fed beef in the coming weeks. This scheme would be beneficial to Irish beef producers both large and small, as it protects the names of specific agricultural products which would have a valueadded characteristic linked to their place of origin.

Geographical Indicators already exist for Irish produce in Europe, such as Connemara Hill lamb and the Waterford Blaa. Evidence suggests that there is a market for grass-fed Irish beef, too. Research carried out in 2018 by Bord Bia found that 63% of consumers are willing to pay a price premium for grass fed produce. The demand for dairy produce sourced from grass-fed cattle is also high, with “88% of global consumers saying it is the best in the world” according to the National Dairy Council. However, this introduced PGI for grass fed beef could be the final stretch to expand the global Irish grass-fed beef market.

This PGI scheme could provide a positive economic opportunity for producers and for rural areas. Yet, whether the premium price for Irish beef paid by consumers ends up in beef farmers pockets will no doubt determine the success or failure of the deal. Irish Creamery Milk Suppliers Association (ICMSA) president Pat McCormack says the Irish beef sector has the opportunity to get PGI status on over 70% of the beef currently produced in Ireland. The deal does not, however, include bulls, dairy cows and animals with over a two-hour travel journey to the place of slaughter.

Irish Farmers’ Association (IFA) president Tim Cullinan said Bord Bia are twisting their words when it comes to the PGI document. This has stemmed from Bord Bia’s failure to discuss the document with farmers before it was published. Cullinan urges farmers to “read the full document rather than the spin from Bord Bia”. Along with this, Bord Bias statement suggests that all animals including young bulls would be eligible for the grass fed ‘standard’ but they were not eligible for the grass fed ‘PGI’ which was previously thought to be on the cards for Irish beef farmers, from past Bord Bia advertising which promoted a finishing bull herd on the overseas campaign for Irish beef.

The Irish Cattle and Sheep Farmers’ Association (ICSA) Suckler Committee Chairman Ger O’Brien says that Irish suckler beef is a niche product and with this there should be a PGI status specifically for sucklers. “Irish suckler beef is a premium product that demands a premium price and in order to achieve a price we need a PGI status” says O’Brien. Previous ICSA chairman John Halley agreed and said “if we go for one generic PGI to cover everything, suckler farmers will feel let down that dairy farming interests have triumphed again when in fact this should be a device to improve returns for suckler systems”. The PGI scheme is a value-added characteristic linked to their place of origin, with which suckler beef farming is intrinsically associated with maintaining high amenity landscapes where tourism is vital. Along with this, suckler beef has high animal welfare standards and a high natural health status. Suckler farmers already meet PGI standards whereas other beef farmers will have to increase measures in order to avail of the PGI status.

IFA livestock chairman Brendan Golden has urged Bord Bia and the Department of the risk they pose to beef farmers by exploiting the grass-fed image. Compliance by beef farmers with new measures seen over the last few months has only impacted negatively in terms of a higher beef price. “We need to get this right and farmers need to be centrally involved” says Golden. Now is the prime opportunity for beef farmers to get their foot in the door on the PGI status.

PGI status has the potential to build some resilience against market volatility by positioning products in a high-quality category. This could evidently give assurance to farmers with the consistency of a PGI status. With that said, a narrower range of production would have to be taken in relation to Irish beef. However, then a differentiation would occur between Irish grass-fed beef and Irish grass fed PGI status beef in the marketplace. One which beef farmers and consumers alike may not be too pleased about.