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IRELAND SHOULD GROW its seaweed sector to help weather the effects of Brexit on the food and drinks industry, a government committee has said.
A report from the joint committee on agriculture, food and the marine singled out seaweed as an underdeveloped commodity that Ireland could use to “help mitigate some of the damage” caused by a hard Brexit.
“Seaweed represents an opportunity for diversification of Irish aquaculture output,” the report said.
“While not sufficient on its own, promotion of seaweed and other opportunities can help diversify Irish agrifood, developing the long-term viability and robustness of the sector.”
The joint committee recommended this week that the country should “diversity its economic output” to resist future shocks.
“A focus on the most profitable sectors may prove short-sighted, and leave Ireland exposed in the longer-term,” it said.
According to a 2015 report from the state’s seafood development agency, BIM, demand in Europe for sea vegetables is growing by up to 10% each year.
However, many food firms based in Europe import the material from Asia and the Americas because there is not enough indigenous supply.
As a result, there are other “substantial European markets which Irish seaweed growers can avail of” in addition to tapping the UK market, the agriculture committee said.
Pound drop
Since the June 2016 referendum, it has been widely reported that Ireland’s food and drinks sector is highly vulnerable to any fallout from Brexit since about 40% of our food exports are UK-bound.
Bord Bia estimated that the fall in sterling last year after the Brexit vote cost Irish food and drink exporters €570 million.
It was reported last month that the value of exports to Britain fell by 8% in 2016 to €4.1 billion as a weaker sterling made Irish produce comparably more expensive.
The agriculture committee also noted in this week’s report that the mushroom sector is particularly vulnerable to fluctuations in the value of the pound.
The problem is two-fold: the majority of Irish growers export all of their produce to the UK, and many contracts are negotiated in sterling.
Some sectors are expected to perform well after Brexit. The committee said Ireland’s alcohol industry “is in good health despite internationally challenging circumstances”.
It noted that Irish whiskey is the fastest growing spirit in the world, with exports up 8% in 2016, resulting in sales worth €505 million.
Exports to the US, continental Europe and Asia drove that growth, according to analysis from Bord Bia.
The committee report said that if the drinks sector here is managed properly, it can “maintain growth in markets beyond the UK in the coming years.
It suggested that the Irish Whiskey Trail should be further developed and that “it may also be of interest to determine if a network of breweries and distilleries may be formed to create a combined trail”.
“It may be beneficial to consider international experience such as best practice in vineyard tours in France, Spain, and Portugal or the nearer Scottish gin trail,” it said.
Written by Conor McMahon and posted on Fora.ie
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Can we not do away with these Ratings Agencies??
Agree with you Jason. They always seem to pounce with a downgrade just as it seems countries are reaching a solution to some of the financial problems. As European leaders seem to finally getting their heads in gear to sort out the euro S&P through this in. Who are they? Who owns or controls them. Is there a Mr or Ms Standard. (lord knows we are all Mr &Ms Poors at the moment!)
This downgrade has been due for a LONG time.
The latest chapter in Ireland’s history, we’ve had the vikings, Normans, English, catholic church and now it’s time for the banks.
They’re making money by playing the markets like this. They should be disbanded
Yeah but who rates the rating agencies eh??
The coastguard?
As far as I’m aware, the ratings agencies are funded by the stock exchanges. The bigger problem is these agencies were asleep at the wheel in the run up to the financial crisis in 2008 and actively contributed to these problems. They’re overcompensating now.
Standard and poors , Moody’s , the markets , Moore McDowell , the troika … Go and find a hole and throw yourselves into it and let us go back to our half normal life before youse gobshites came along and rated us.
The agencies are owned by public companies and earn their revenues from bond issuers asking to be rated. If we weren’t rated, many pension fund rules would prohibit them from investing in our debt.
The rating agencies were absolutely shocking in the run up to the sub prime crisis, but as for this recent action, they’re just saying what everyone else knows – that banks aren’t as safe as they used to be and government support is no longer guaranteed. They’re just doing their jobs.
have your say