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Annual Report 2017 Annual Report 2017 Prepared by the Department of Agriculture, Food and the Marine www.agriculture.gov.ie Content Review of 2017 2 Main Achievements 3 STRATEGIC GOAL 1 STRATEGIC GOAL 5 Food Safety, Animal and Plant Health and Animal Corporate Development Welfare Financial Management 78 Food Safety 8 Staff and Organisation Management 81 Animal Health and Welfare 11 Developing IT Capability 83 Plant Health 17 Corporate Affairs 87 Laboratory Service 20 APPENDICES STRATEGIC GOAL 2 Appendix A Farm/Sector Supports and Controls Organisation of Department 90 Promoting Sustainable Farming 30 Customer Service 33 Appendix B Scheme Operations 35 State Bodies 94 Appendix C STRATEGIC GOAL 3 Vote 30 Agriculture, Food and the Marine 2017 97 Policy and Strategy EU/International Interactions 38 Appendix D Food Security 45 Performance Budgeting 101 National Policy Framework 46 Research & Innovation 52 Appendix E Food and Drink Sector 54 EAGF/EAGGF Guarantee Primary Production 58 Expenditure 2017 106 Sustainable Production 62 STRATEGIC GOAL 4 Seafood Sector Overview Seafood Sector 70 Fisheries Management and Conservation 72 Fishery Harbour and Coastal Infrastructure Capital Development Programme 75 1 Annual Report 2017 Mission Statement Serving the government and people of Ireland by leading, developing and regulating the agri-food sector, protecting public health and optimising social, economic and environmental benefits. Vision Statement An innovative and sustainable agri- food sector operating to the highest standards This Annual Report is produced in line with the objectives set out in the Statement of Strategy 2016 - 2019 1 Review of 2017 The agriculture and food sector continued to play a vital role Under Budget 2018, Minister Creed announced in in Ireland’s economy with agri-food exports accounting for partnership with his colleague the Minister for Business, 11% of total exports to reach €13.6 billion marking growth Enterprise and Innovation, that they had agreed to establish of over 74% since 2009. The UK remained Ireland’s largest a new “Brexit Loan Scheme” which will provide affordable, agri-food export destination, with exports of €5.2 billion flexible working capital finance to Irish businesses that are in 2017 or 38% of total exports (a 7% increase on 2016). either currently impacted by Brexit or who will be in the Exports to the EU (excluding the UK) and the rest of the future. world were both worth €4.2 billion in 2017. The top three export categories in 2017 were Dairy Produce, Beef and Minister Creed also secured funding of €25 million for the Beverages accounting for over €8 billion of total worldwide Department to facilitate the development of new Brexit exports. response loan schemes during 2018 for farmers, fishermen and for longer-term capital financing for food businesses. Work continued in 2017 to give effect to the UK’s decision to leave the European Union on 30 March 2019, following The European Commission launched a 12 week the submission by Prime Minister May of the Article 50 public consultation process on CAP simplification and Notification of Withdrawal on 30 March 2017. modernisation from February – May 2017. The responses from this consultation formed the basis of the Greening The initial impact of the Brexit vote on the sector has been simplification measures announced at the Agri-Fish Council the effect of sterling volatility on those businesses that have in July. Many of the simplification proposals focused on a significant trading relationship with the UK, and this drop changes to various rules relating to Ecological Focus Areas. in currency value continues to have a negative impact. In the medium to long term, the threats from Brexit are likely to The next stage in the CAP post 2020 process will be the include the possible introduction of tariffs on trade between publication of the legislative proposals, which are due to be the EU and UK and potential divergences in regulations and published in second half of 2018. standards between both countries post-Brexit. Market developments across the EU, particularly in the dairy, The challenges are being addressed through a range of livestock and fruit & vegetable sectors, continued to be budgetary measures covering Competitiveness and Market/ monitored closely in 2017. The dairy market continued to Product Diversification. The measures include low cost loan exhibit signs of recovery. Combined EU efforts in areas such schemes, new agri-taxation measures and increased funding as market measures, direct aid and limited voluntary supply under the Rural Development and Seafood Development control in conjunction with improved global supply and Programmes, as well as additional grants to Bord Bia and demand dynamics led to a more favourable EU and global Teagasc for market development and food innovation dairy market context. measures. The Minister for Agriculture, Food and the Marine, Michael Creed TD established a Consultative Committee of Stakeholders to ensure a full exchange of information on the potential implications of a UK exit from the EU for the Irish agri-food and fisheries sectors. The work of this Committee continued throughout 2017 with the committee meeting on five occasions. These meetings were complemented by a further five sectoral gatherings hosted by Minister Creed under the All Island Civic Dialogue process. 2 3 Main Achievements Minister Creed launched the National Farmed Animal In October 2017, the EU Environmental Council agreed Health Strategy 2017-2022 in July 2017. The Strategy a general approach for the Effort Sharing (ESR) and plays a role in Ireland’s ongoing efforts to enhance its LULUCF Regulations. This enabled the start of trilogue reputation for high standards of animal health and to negotiations to progress finalisation of the proposals. expand its share of international markets. The Strategy A provisional deal was reached on both the LULUCF provides a road map for working in partnership with all and ESR files in December 2017 with final adoption of stakeholders in the agri-food industry to improve animal both files expected in early 2018. The most significant health. elements of the provisional ESR agreement are: • Starting year 2019 and 5 months based on 2016- In 2017, the Minister established a Agriculture Appeals 2018 average emissions. Review Committee to carry out a review and furnish • Use of LULUCF and ETS flexibilities (4% and 5.6% for a Report, to include recommendations as regards Ireland respectively). the legislation governing and the future operation • Cost effectiveness included in distribution of targets of, the Agriculture Appeals Office. The Review (Ireland’s target reduced from 39% to 30%). Committee submitted its Report to the Minister and its recommendations are currently under consideration by the Department, particularly with regard to legislative In August, 2017, the second of two Open Calls under the changes that may be required. European Innovation Partnerships Initiative (EIP) issued. Sixty nine proposals were received in the Department for consideration by the evaluation committee. An overall Minister Creed led a series of trade missions during 2017, funding package of €24 million has been set aside to beginning in February with the Gulf Region, visiting the support EIPs under these two calls. Kingdom of Saudi Arabia and the United Arab Emirates. This was followed by an extensive Trade Mission to the US and Mexico in June - markets that offer many The first All Island Equine Health Survey Report, potential opportunities for Irish exporters. commissioned by the Department and prepared by the Irish Equine Centre, was completed in December 2017. The last trade mission of 2017 was to Japan and South Korea. Minister Creed was accompanied by 40 The Horticulture sector saw strong investment in 2017 representatives of the Irish food sector, as well as by with €4.8m paid under the Commercial Horticulture experts from his Department, the Chief Executive of Bord Grant Aid Scheme which supported investments totalling Bia and senior representatives from Enterprise Ireland €12m. Investment in smaller sectors was evident with and Teagasc. growth in the sprouted seed and hop production due to demand in the health food and brewing industry. The Department hosted the successful conference, “Food Wise: Challenge, Ambition, Opportunity” in Croke Park In addition to outward trade missions, the Department on 4 December. 580 people attended the event. The hosted high level visiting delegations from a wide range Conference provided a forum to review progress to date, of countries in 2017, including China, Japan, South Korea, understand the significant challenges ahead, including in US, Australia, New Zealand, Mexico, Morocco, Uganda, particular Brexit and environmental challenges, and renew Iran, Turkey and Ethiopia. the Government’s commitment to provide an enabling environment for the sustainable growth of the sector. For the first time in six years, a decision on agriculture was reached at COP 23 in November 2017. This decision recognises the role of agriculture in tackling climate change and achieving the ambitions of the Paris Climate Agreement. 3 Main Achievements In addition to paying Ireland’s 2017 subscription of In 2017, Irish Whiskey exports continued to grow €1.94 million to FAO, further extra budgetary funding and exceeded €575m for the first time and brought of €2.7m was provided to the FAO in areas where FAO cumulative growth of the category to over 100% in the has a particular competence and which the Department
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