This week sees three trade missions move out across the world to showcase Irish produce and products reflecting a return to pre-COVID engagement with clients and consumers that is so important for Irish farmers and rural agribusinesses.
The virtual world makes ongoing communications much easier and efficient. However, the face-to-face engagement brings client relationships to a different level.
So while this week will see ambassadors for Irish farming and food in Poland, the US and China, it is China that undoubtedly has the most growth potential.
Defining feature
The rise of China has been a defining feature of Irish farming for the last three decades. Since reform of its economy started in the 1980s, it’s GDP has grown by 9% per year on average. The sheer size of its market and manufacturing base with upwards of 750m people escaping from poverty has pushed other more productive countries to supply products and produce into China.
Yes, the rapid rise in China is slowing down. China’s working age population is in decline. More resources will need to go into caring for the elderly. Geopolitical tensions are making some exporting businesses diversify away from China.
Economists argue over when China’s GDP will overtake the US, if at all. More investment in military spending mean China’s navy could be 50% bigger than America’s by 2030. However, China’s population are still keen to improve their living standards.
As living standards improve and the middle class grows, quality beef and dairy proteins become more of an option. This provides the opportunity for Irish businesses to cultivate a new market.
Farmers can only be thankful the opportunity and investment in meat factories and Irish dairy businesses makes this a viable option. It takes both parties – the farmer and the business to make this work so both need to be equally conscious of the external demands on each entity.
In Ireland,to work on farms and businesses is now as much a pressing issue as market access which sometimes flatters to deceive.
Be careful during silage season
Big silage machinery is on the move in rural Ireland this week. This means the start of a new risk period for farm safety.
This warning comes not only for those operating new and more powerful machinery, but for all those living and working in rural Ireland.
The lure of social media provides a big distraction for young people operating these machines and we’ve all passed big tractors and machines where the driver was more engaged with his or her phone than the road or other users. Farmers have a responsibility to set ground rules and warnings.
As much as the contractors and farmers are under time pressure it is nothing like the pressure than comes on a farm family when an accident happens.
How quickly supply forecasts can change. While all co-ops have supplier survey exercises, the fundamental changes to input costs and the environmental challenges on family farms are starting to affect milk supply. It’s a little over 12 months ago that two of the biggest co-ops, Lakeland and Tirlán, imposed restrictions on milk supply with peak penalties or retirement options for farmers. Now that the cost of production is exceeding milk price, the smart money would suggest 2023 supply will be back even further on 2022 supply. This will also affect processor margins.
Read more
Some time needed to return China beef market to 2020 levels - Dale Crammond
The tale of the tape from a huge year in dairy
This week sees three trade missions move out across the world to showcase Irish produce and products reflecting a return to pre-COVID engagement with clients and consumers that is so important for Irish farmers and rural agribusinesses.
The virtual world makes ongoing communications much easier and efficient. However, the face-to-face engagement brings client relationships to a different level.
So while this week will see ambassadors for Irish farming and food in Poland, the US and China, it is China that undoubtedly has the most growth potential.
Defining feature
The rise of China has been a defining feature of Irish farming for the last three decades. Since reform of its economy started in the 1980s, it’s GDP has grown by 9% per year on average. The sheer size of its market and manufacturing base with upwards of 750m people escaping from poverty has pushed other more productive countries to supply products and produce into China.
Yes, the rapid rise in China is slowing down. China’s working age population is in decline. More resources will need to go into caring for the elderly. Geopolitical tensions are making some exporting businesses diversify away from China.
Economists argue over when China’s GDP will overtake the US, if at all. More investment in military spending mean China’s navy could be 50% bigger than America’s by 2030. However, China’s population are still keen to improve their living standards.
As living standards improve and the middle class grows, quality beef and dairy proteins become more of an option. This provides the opportunity for Irish businesses to cultivate a new market.
Farmers can only be thankful the opportunity and investment in meat factories and Irish dairy businesses makes this a viable option. It takes both parties – the farmer and the business to make this work so both need to be equally conscious of the external demands on each entity.
In Ireland,to work on farms and businesses is now as much a pressing issue as market access which sometimes flatters to deceive.
Be careful during silage season
Big silage machinery is on the move in rural Ireland this week. This means the start of a new risk period for farm safety.
This warning comes not only for those operating new and more powerful machinery, but for all those living and working in rural Ireland.
The lure of social media provides a big distraction for young people operating these machines and we’ve all passed big tractors and machines where the driver was more engaged with his or her phone than the road or other users. Farmers have a responsibility to set ground rules and warnings.
As much as the contractors and farmers are under time pressure it is nothing like the pressure than comes on a farm family when an accident happens.
How quickly supply forecasts can change. While all co-ops have supplier survey exercises, the fundamental changes to input costs and the environmental challenges on family farms are starting to affect milk supply. It’s a little over 12 months ago that two of the biggest co-ops, Lakeland and Tirlán, imposed restrictions on milk supply with peak penalties or retirement options for farmers. Now that the cost of production is exceeding milk price, the smart money would suggest 2023 supply will be back even further on 2022 supply. This will also affect processor margins.
Read more
Some time needed to return China beef market to 2020 levels - Dale Crammond
The tale of the tape from a huge year in dairy
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