Folketingets Økontaktudvalg 2009-10
ØKU Alm.del Bilag 20
Offentligt
Aspects of the IrishEconomyPresentation to Danish ParliamentariansGalway. June 7, 2010Michael CuddyNUI, Galway
Ireland – Boom to BustCeltic Tiger to construction bubble
FDI – driver of economic growthProduction costsExpansion of government expenditure
Busting of construction bubbleBanking crisisGovernment finances
GDP Annual Growth Rate
Population density of ED, 2006
Percentage change in populationof EDs, 2003-2006
Percentage of workers in each ElectoralDivision who travel over 30 kilometres towork
Farm Structure and Land Use
Average farm size is 32 hectares with almost 50% offarms less than 20 hectares.Only 13% of farmers are less than 35 years old and41% over 55The decline in the number of small Irish farms hasbeen more rapid than in EU – over 5% per annum forfarms less than 5 hectares.Irish agriculture is primarily a grass-based industry;80% of agricultural area is devoted to grass (silage,hay and pasture), 11% to rough grazing and 9% tocrop production.Beef and milk production currently account for closeon 60% of agricultural output at producer prices.
On 48% of farms, the farmer and/or the spousehave an off-farm job.30% of farm families rely on farming as theirsole source of income.60% of farm household income now comesfrom off-farm sources.On average, 75% of farm income is made upof direct payments.Farm households have a weekly disposableincome of €160 per household membercompared with €149 for non-farm ruralhouseholds and €195 for urban households.
Main Commodities and Exports
The agri-food sector accounts for8% of gross domestic product,around 10% of employment andaround 7% of total exports.Beef and milk production accountfor around 60% of agriculturaloutput.Ireland exports nine out of every 10beef animals, making it the largestbeef exporter in the EU and one ofthe largest in the world.Dairy exports account for 75% oftotal production
Weakness in Irish AgricultureMajority of farmers engaged in lowmargin activities (extensive exportoriented produce), which can only givesmall incomes, given the average farmsizeFarmers are overly dependent on EUprice and income supportsFarmers are price-takers, not pricemakers (Monopsonistic markets)Poor age profile of operatorsLack of young people taking up farmingdue to poor incentivesLow level education of farmers inagricultural matters
Farming decision-making does nothave a keen business edgeFarmers are not good at exploiting theirresources for alternatives to foodproductionFarmers do not have a tradition ofselling directly to the consumer and aretherefore not consumer orientedPoor quality livestock - no incentive toproduce good quality beefOver-regulation of the industryVolatile farm (policy) environment
Island Issues – Celtic TigerAll islands received grant support administeredthrough Community Development Programme(Previously only Gaelic speaking islands withthis status)Significant improvement in islandinfrastructureSubsidies to Island Ferry ServiceLEADER II – one LEADER for all islands(Community Groups amalgamated)Do not have to compete with mainland forfundingNeed a community development programmeon each islandEconomic pull to mainland during Celtic Tiger
Long Term Strategy forIslandsSocial Services for people and childrenFishing
regulated out of existence – must beaddressedLobster Storing (Long Term)
Farmingmove to organic and brandedproductionTourismAttracting mobile enterprises through IT
