Horticulture Newsletter Autumn 2016

IFA has welcomed the Minister for Horticulture Andrew Doyle’s commitment to establish a Horticulture Industry Forum, bringing together all stakeholders, food and amenity, to address the challenges and issues facing this very important sector, worth over €400m annually at farm gate.

The Horticulture industry must be protected and supported by the Government. Stakeholder engagement, under the guidance of the Minister, will set out a clear vision and strategy for the industry, providing real engagement to progress issues.

IFA’s Horticulture Chairmen have outlined the different issues in their sectors at a recent meeting with the Minister, emphasising the single biggest threat to their livelihoods as the dominance of the retail sector, and the eroding of their margins by the on-going below cost selling practice operated by retailers.

In Budget 2017, IFA has proposed annual funding of €8m for the Scheme of Investment Aid for

the Development of the Commercial Horticulture Sector, due to increased investment commitments to meet sustainability standards. The scheme needs to be expanded to include potatoes, specifically a targeted scheme to support the development of salad, seed and fresh chip market potatoes.

Following the UK decision to leave the EU, our Government must be strong and ensure that the issues of importance to the Irish agri and horticulture sectors, particularly the mushroom sector, are central to the negotiations.

IFA is leading a major campaign for the abolition of EU fertiliser import tariffs. We have engaged with leaders in all EU Member States, with the EU Commission, and with our own Government to secure support for the removal of tariffs, which would bring savings of €50m - €70m per year for Irish farmers.

On plant protection products, IFA has made a strong case for science, rather than politics, to dictate in decisions on crop production technologies. An extension has been secured on the authorisation of Glyphosate. IFA continues to make the case for the use of Diquat.

Minister Doyle’s Commitment to Horticulture Forum Welcomed

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IFA Horticulture Chairmen meet with Minister for Horticulture Andrew Doyle (L to R) Val Farrell Nursery Stock, Gerry Reilly Mushrooms, Joe Healy IFA President, Paul Brophy Vegetable and Protected Crops, Minister Andrew Doyle, Eddie Doyle Potatoes and James Kearns Soft Fruit

Brexit implications for Irish Mushroom producers

Irish Mushroom producers have been in loss making territory since Brexit on 23 June with the impact of the exchange rate volatility. 90% of mushrooms, worth €120m, produced here are exported to the UK and account for 52% of the UK multiple market. 60 mushroom producers employ 3,500 people in Ireland.

A major difficulty is that contracts have been agreed in sterling, when sterling was at a stronger position against the euro. IFA has discussed with Minister Doyle practical measures that the Government can act on to address the short-term exchange rate volatility proposing the following:• implementation of the exceptional State Aid measure allowing for a provision of short term loans to cater for

liquidity gaps in the Dairy, Pigmeat, Fruit & Vegetable Sectors• pay, as soon as possible, the Producer Organisation funding due to the CMP for their 2015 programme• to explore the option of temporarily reducing the lower rate of employer PRSI (from 8.5% to 4.25%). This

measure existed between 2011 and 2013 as part of the then Government’s Jobs’ Initiative.

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IFA President Joe Healy has told Enterprise Minister Mary Mitchell-O’Connor that farmers need strong enforcement of the new Grocery Goods Regulations and that her Department must oversee the enforcement of the new regulations by the Competition and Consumer Protection Commission (CCPC).

Farmers need contracts that are effective, their complaints must be investigated, and any offenses against the regulations prosecuted. Retailers must be aware that they will be held to account, and farmers need to know that the regulations to protect suppliers are being enforced.

The new Regulations will have to lead to a fundamental change by retailers and wholesalers when it comes to paying their suppliers promptly. Wholesalers and retailers will have to step up to the mark

and comply with the new legislation, which provides for payment within 30 days as a standard provision. There is no justification for retailers or wholesalers to insist on contractual terms longer than the standard 30 days, for short shelf-life products such as fruit and vegetables.

Grocery Regulations must provide for ban on Below Cost Selling

While welcoming the progress made in the enactment of the Grocery Goods Regulations, the legislation must go further and provide for a ban on below cost selling and the establishment of an independent retail ombudsman. This would ensure that suppliers who are subject to unfair trading practices by retailers can have confidential and effective recourse to an Independent Ombudsman to investigate and pursue their case.

Meeting with CCPC

IFA Horticulture Chairmen met with the Competition and Consumer Protection Commission (CCPC) to discuss the implementation of the Grocery Goods Regulations, which came into effect on 30 April 2016.

IFA stressed to the CCPC the importance of their role in monitoring the compliance of retailers and wholesalers with the statutory legislation, which provides for written contracts between retailers or wholesaler and suppliers, to give greater certainty to producers on their terms and conditions.

Strong Enforcement of Grocery Goods Regulations

Call for Retailers to Support Irish Salads

Marking the inaugural National Summer Salads’ Week, in conjunction with Bord Bia, IFA President Joe Healy said that “Ireland’s 75 salad growers produce crops worth €45m at the farm gate, with tomatoes and lettuce accounting for €15m of this. These growers, who employ over 600 people, have made sizable capital investments on their farms, which helps to extend the production season and now provide some lines from mid-March to November.”

Summer Salad producers have called on retailers to recognise the investment made by salad growers, by ensuring that their produce is seen on retail shelves as a premium, quality product, and not used as a loss leader in retail wars.

Salad growers face constant challenges in the market place - cheaper import substitution, especially when sold below the cost of production, and increased labour and energy costs.

Chief Economist Rowena Dwyer, IFA President Joe Healy and Elaine Farrell Retail Executive meeting with Mary Mitchell-O’Connor Minister for Jobs, Enterprise and Innovation on the need for strong retail regulation enforcement.

UK GROCERIES CODE ADJUDICATOR Christine Tacon will address an IFA Seminar on the UK Groceries Supply Code of Practice on November 30 in Dublin. Further details on www.ifa.ie

Launching national summer salads’ week on Kilbush Nurseries in Rush, Co Dublin (LR) Eve McCann, Mark McCann, Paul Carroll, IFA President Joe Healy, Minister for Horticulture Andrew Doyle, Tom Collins and Matt Foley

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IFA along with Bord Bia, the Potato Federation, the Department and the Potato Council (UK) continue to work on the €1m EU funded Potato Promotion as it enters its second year. The three-year project, aimed at putting potatoes back on the plate of Irish consumers, is supported by Irish growers to the tune of €205,000.

The campaign strategy, primarily targeted at females aged 22 – 44, with a focus centred on social media, is to grow the retail potato market by 28,000t, increase the frequency of potato purchases by 6% and increase consumers’ health perceptions of potatoes by 8%.

Positive Outlook for Potato Market

Provisional 2016 plantings show less than a 2% increase on 2015. Early plantings were similar to last year and have resulted in a reasonable market.

Old stock has cleared up to three weeks earlier than 2015, with new main crop on the market by mid-August. Early indications are that the average crop yield will not reach the heights of 2015 and this, together with other factors, bodes well for a positive 2016 market.

Crops across the UK and northern Europe continue to lag two weeks behind, with all old stock virtually cleared, resulting in a continuation of positive farm gate prices. Plantings

are estimated to be up by 3 - 5%, but this should not impact on the market, as crop losses are expected to outweight the increased area.

Addressing challenges and opportunities in the potato sector

• Potato tare continues to be a major issue for growers supplying merchants. To address this, IFA is in discussions with the Potato Federation to create an industry standard.

• In its second year, the Salad potato pilot project organised by IFA, Teagasc and Bord Bia on Slaney Farms, has been augmented by a number of other regional trials. The area of salad potatoes grown

continues to increase, with scope for more growers to enter this market as an alternative to more traditional varieties.

• Attempts by the Potato Committee to rejuvenate the Irish Seed potato sector are progressing and the establishment, of an IFA proposed stakeholder working group to address the demise of the sector is welcomed.

• The Potato Committee is focusing on tackling the fresh chip sector market which imports large quantities of potatoes.

Retailers Tackled - Lidl / Aldi Protest

Retailers tackled: an IFA protest at Lidl and Aldi stores in North Dublin accused the retailers of gross hypocrisy by slashing the price of fresh produce below the cost of production while claiming to support Irish growers.

Vegetable and Potato Growers protested outside Aldi and Lidl in the Spring as the retailers moved to reducing the shelf price of some vegetables and potatoes to as low as 29c, sending a very misleading message to consumers.

The use of below-cost selling as a tool to drive footfall seriously distorts the market for all Irish vegetables and ultimately undermines Irish production and the financial viability of our specialist growers. IFA continues its campaign for viable farm gate prices to growers, which must ensure escalating production costs are accounted for.

Potatoes – More Than A Bit on the Side

DATE FOR YOUR DIARY -

National Potato Day Friday 7 October.

Further information www.potato.ieLaunching the new season crop in Carne, Co Wexford (LR) Pat Pettit farmer, Lorcan Bourke Bora Bia, Eddie Doyle IFA Potato Chairman, Aoife Hearne Potato Ambassador and Michael Hoey President Irish Potato Federation.

Mushrooms

Potatoes

Vegetables & Protected Crops

Fruit

Nursery

Apples

Gerard Reilly

Paul Brophy

Eddie Doyle

Val Farrell

James Kearns

Cornelius Traas

Reilly Mushrooms, Walderstown, Athlone, Co Westmeath

Woodside, Newlands, Naas, Co Kildare

Luffany, Mooncoin (via Waterford), Co Kilkenny

B & V Nurseries, Rathmooney, Skerries, Co. Dublin

Curragraigue, Enniscorthy, Co. Wexford

The Apple Farm, Moorstown, Cahir, Co. Tipperary

086 2692012

086 2608399

087 2787472

087 2503752

087 8241978

086 6091998

IFA Horticulture Chairmen

Compiled by:

Elaine Farrell Oireachtas / Retail & Horticulture Executive elainefarrell@ifa.ie

Patrick FarrellPotato & Fresh Produce Development Officer

patrickfarrell@ifa.ie

Tel: 01 450 0266

IFA, The Irish Farm Centre Bluebell, Dublin 12

www.ifa.ie @IFAmedia iFarm.ie

Strawberry Crop worth €38m

Challenging Times in Nursery Stock

For this year’s National Strawberry Week in June, Soft Fruit Chairman James Kearns urged consumers to support Irish fruit growers by buying Irish.

Ireland’s 100 strawberry growers produce a crop worth €38m at the farm gate, with production expected to reach almost 7,000t this year. Growers have made sizable investments on their farms to extend the production season, with fresh fruit now available to the Irish consumer from April right through to November, in an industry that accounts for 1,000 rural jobs.

Consumer demand continues to increase for strawberries, however, growers are fearful for their futures due to the escalation of input costs. The recent increase in wage costs is very significant in this labour intensive industry, where labour accounts for almost 50% of the costs of production.

Top Fruit

IFA 2017 Budget Submission, has supported the Irish Apple Growers’ Association proposal for changes in the excise and licensing regime for cider.

IFA submission to the DAFM on the mid-term review of GLAS renewed its call for the introduction of measures for apple growers, allowing their inclusion in the scheme.

Roadside Sales

IFA routinely monitors roadside sellers to ensure that the Casual Traders Act is adhered to. Only Irish grown soft fruit and loose skin potatoes can be sold from 1st May to 30th September.

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IHNSA Chairman Val Farrell reports that representation of nursery stock producers continues in these challenging times.

In 2016, • two trolley fairs took place on nurseries and

continued to assist producers in showcasing their produce to potential buyers with 44 nurseries exhibiting and 200 visitor buyers attending, over the two events;

• IHNSA members again participated in the GroMór / Garden Centre Campaign in conjunction with Bord Bia and engaged with REI to ensure nursery participation, including, a ‘pot sticker’ for Irish plants for nursery participants;

• IHNSA/IFA proposed in its submission to the Department on the 2nd Amendments to the CAP RDP 2014 – 2020, the restoration of the Hedge Planting measure in GLAS for the next phase of the scheme;

• Val Farrell recently met with Horticulture Minister Andrew Doyle where he continued to campaign for support for wholesale nurseries with stocks of Ash trees, restricted for sale by the Ash Dieback suspension, and

• the IHNSA Committee recently met with Dermot Callaghan Head of Horticulture Teagasc and Donall Flanagan newly appointed Nursery Stock Advisor where discussions included mapping out a plan for the nursery stock sector.

Agricultural Workers’ Joint Labour Committee Previously, agricultural workers and employers were governed by the terms of the Agricultural Workers’ Employment Regulation Order (ERO). In 2011, the High Court ruled that certain powers of the JLC, who set the EROs, were unconstitutional, and were disbanded. IFA’s position is that, while the JLC had a function in the past, it is no longer required. In 2014, legislation for a new JLC was passed and employer and employee nominees have been invited to be represented, including IFA. No new JLC has been convened.

This Summer, IFA made representation to the Low Pay Commission emphasising the disproportionate impact any further increase in the minimum or imposition of a living wage would have on the horticulture industry. The LPC has

recommended a 10c increase, which is to be considered by the Cabinet this Autumn.

Horticulture Quality Assurance Scheme

IFA has taken up with Bord Bia the serious concerns of growers on the proposed new HQAS. The increased burden of inspections and compliance, while produce is undermined at retail level, is unacceptable.

To ensure ongoing grower participation in the scheme, IFA has proposed that:• growers remain in the existing scheme for a

transition period;• workshops and templates are provided for the new

scheme to reduce any extra costs incurred;• auditors take a more practical approach on farms;• the time span of audits is significantly reduced, and• there is greater overlap of DAFM and Bord Bia

audits.

Launching National Strawberry Week on Green’s Berry Farm, Gorey, Co Wexford (LR) John Green, IFA President Joe Healy, Minister for Horticulture Andrew Doyle and Wexford IFA County Chairman Pat Murray.