2 March 2023 - Flipbook - Page 41
BUSINESS
FARMWEEK
JANUARY 28 2021
41
Sigh of relief over Basic Payment Scheme
D
INDUSTRY
INSIGHT
URING the recent online
Oxford Farming Conference,
policy differences between
the four jurisdictions of the
UK became increasingly
clear.
While each of the four regions
were given the opportunity to
share their views on how farmers
should be funded in the future, it
came as quite a shock to learn of
the proposed changes to the Basic
Payment Scheme in England.
On hearing this news, I’m sure I
wasn’t alone in breathing a sigh of
relief that farming here remains a
devolved matter and that Northern
Ireland will not be following suit in
introducing a cut to this scheme.
Starting this year, all farmers
in England will see initial cuts to
their BPS of ve per cent if they are
receiving less than £30k or 20 per
cent if they receive above £50k. By
2024, this gure will rise to 50 per
cent across the board.
ON THE
MONEY
Cormac McKervey
Senior Agriculture
Manager, Ulster
Bank
Even the original reduction will
present signicant challenges to
the average farmer and while these
cuts may not be on the cards for
farmers in NI at present, future
changes cannot be ruled out.
It’s important to keep an eye on
the situation as it develops but
farmers have genuine concerns
about the impact this will have on
cash ow, ability to meet debt and
opportunities for investment.
The rationale behind this scheme
is that the cuts will release around
£1 billion each year which will be
put towards funding environmental
schemes. There will be the
opportunity for farmers to recoup
some of this money by joining an
Environmental Land Management
Scheme (ELMS) but as yet there
has been little to no detail about
what this process will entail.
This obviously puts farmers in
a difcult position; how can farm
businesses plan for the future
without being provided with
adequate information about what
they will be eligible to receive
under this new era.
Thankfully, closer to home our
own Agriculture Minister has
pledged that no farmer will be left
behind and not opted for such a
drastic overhaul to the scheme.
Instead, he has indicated that
future farm payments will be based
around four core themes.
The rst of these is increased
productivity. Productivity tends
to be higher in some areas than
others but it’s clear across
the sector that the higher the
productivity, the higher the prot,
so farmers should welcome this
initiative and perhaps even take an
audit of their outputs at this time.
Next is environmental
sustainability, which will come as
little shock to anyone. Things have
been moving in this direction for
some time and it’s important that
farmers play their role in the drive
to reach zero emissions. That said,
we want to see farmers rewarded
for their efforts and environmental
improvements.
The third area is improved
resilience, which again seems like
a sensible approach. Replacing the
BSP payments with a resilience
payment will provide farmers with
some form of safety net if and when
a crisis strikes. It will provide a
cash ow and the security to plan
ahead.
Finally, the last area is supply
chain integration. Where this works
well, everyone benets. Farmers
know in advance what they can
expect for their product and if they
know their costs of production
they can calculate their margins
more accurately and weigh up their
options. This option also pleases
the processor who is guaranteed a
product which better meets their
requirements and, ultimately,
customer demand.
The differences in the two
approaches is stark but to me it
reinforces the importance of having
these matters decided locally.
The best policies are those which
reect the needs of our farmers
and recognise the constraints they
are working under. Let’s hope this
continues to be the case here and
our local decision makers maintain
this focus.
Irish food and drink exports
to the UK remain buoyant
N
EW gures released in the annual
Bord Bia Export Performance and
Prospects report 2020/2021 show
that exports of Irish food, drink and
horticulture to the UK were held to a
marginal ve per cent decline in 2020, valued
at €4.3 billion (v €4.5 billion in 2019).
This was despite a period of unprecedented
change and challenge that saw the largest
disruption to normal market operation,
including continued uncertainty around
Brexit and towering pandemic challenges
which saw the closure of the UK foodservice
market.
Launching Bord Bia’s Export Performance
and Prospects 2020/2021 report, Ireland’s
Minister for Agriculture, Food and the Marine
Charlie McConalogue revealed that the
overall volume of Irish exports fell marginally
by two per cent in 2020, valued at €13 billion
(v €13.2 billion in 2019).
The UK remains a primary export market
for Ireland. In 2020, 33 per cent of Ireland’s
total food and drink exports were destined
for the UK. A third were destined to
international markets outside the UK and EU,
while 34 per cent were destined to the EU27.
The UK remains the core market for Irish
horticulture and cereals exports, and
exports to the UK increased eight per cent,
valued at €207 million and accounting for
over 90 per cent of global exports, which was
€221 million, up eight per cent from 2019.
The primary constituents of this export
mix are mushrooms, primary cereals and
amenity horticulture.
The UK represented 44 per cent of primary
FROM PAGE 37
Director of Food and Drink, adds:
“Since it established, Bullhouse
Brewing has demonstrated
an aptitude for developing a
unique product range which has
proved very popular with beer
enthusiasts.
“The company rst contacted
Invest NI in 2017 and over the last
number of years we have built an
excellent relationship, offering
expert business advice on growing
its business, innovating and
growing sales internationally.
“Our support for the creation
of seven new jobs, coupled with
the installation of the new brew
house and associated marketing
activities, is ensuring the company
has a solid platform to expand
LEFT: The annual Bord
Bia Export Performance
and Prospects report for
2020/21 shows the UK
continues to be a primary
export market for Ireland.
Irish beef exports – extensive retail channel
demand somewhat counteracted the
signicant decline in foodservice and held a
one per cent decline to €836 million.
Overall, the value of primary beef exports
was held to a two per cent decline to €1.9
billion in 2020.
Primary pigmeat exports to the UK
increased by a notable three per cent to €177
million in 2020.
The live export sector experienced growth
in 2020, up 11 per cent to the UK and valued
at €107 million.
Covid-19 brought signicant headwinds
for poultry export prices and the sector was
impacted by a 14 per cent decline in exports
to the UK.
Covid-19 and the closure of the UK ontrade has had a signicant impact on alcohol
exports to the UK, down 12 per cent in 2020,
to €199 million.
Although dairy continued its global growth
trajectory into 2020, exports to the UK were
down 13 per cent, to €831 million. Signicant
decline in UK foodservice and Brexit
contingency planning were contributing
factors.
Donal Denvir, Bord Bia General Manager,
Great Britain, said: “It is really positive to
see that Irish exports to the UK remain
strong and resilient during this period of
uncertainty. Bord Bia has been working
tirelessly to support food and drink
suppliers in Ireland through the impact of
the pandemic and Brexit. Notwithstanding
what the future brings, the UK will remain
the largest single destination for Irish food
and drink exports as we continue to navigate
challenges in 2021 and beyond.
“Our geographical proximity, shared
language and shared cultural understanding
ensure that the UK will remain a key strategic
partner for Irish food and drink exports.”
Mr McConalogue said: “Ireland’s food and
drink producers faced many challenges on
the domestic and international front last
year. Despite this, they found a new level of
resilience that saw them hold global exports
at €13 billion.
“The marginal dip of two per cent is in
stark contrast to the towering pandemic
challenges they faced, including the closure
of foodservice, increases in shipping costs,
and dramatic consumer behaviour changes
as people migrated to working from home.
“As we look to 2021, my department, along
with Bord Bia, are resolutely focussed
on supporting our primary producers
and manufacturers as they trade through
continued uncertainty to support jobs and
deliver much needed economic progress.”
Meanwhile, the Chief Executive of Bord
Bia, Tara McCarthy, added: “Behind the
remarkable export performance of our
food and drink sector in 2020 are seismic
challenges at a strategic, category and
channel level.Last year was a pivotal year of
learning for us all and 2021 will be even more
signicant in terms of how we apply these
learnings to rebuild and drive growth in new
and emerging markets.
“The success of the industry’s transition to
doing business virtually – from participation
at online trade fairs to the development of
virtual trade missions – shows that we can,
and we will, rise to the challenge of doing
business in new and inventive ways.”
Craft brewer Bullhouse expands production facilities
n Successful Bullhouse beers.
its business and capitalise on the
growing global craft beer industry.
“I wish Willy and his new team
every success for the future.”
Willy, who developed a love of
home brewing into a fully-edged
brewery, was also inuenced by
the rapid growth in craft brewing,
especially in the US.
He launched the business on a
very small scale on a part-time
basis, producing 400 litres of beer
per batch, bottling and labelling
by hand and selling everything out
of the back of his car.
Demand soon began to outpace
supply, so he enlisted the help of a
local distributor and hasn’t looked
back since.
In September 2017, he decided
to give up the day job and
concentrate on the brewery full
time. To celebrate the occasion,
he brewed a pale ale and called it
P45!
A commitment to perfection in
his beers is matched with his
enthusiasm for experimentation.
So far, alongside the core range
of two pale ales, a session IPA and
a New England IPA, the brewery
releases at least two new specials
every month.
These currently include a rhubarb
and custard sour and a rum barrel
aged plum porter in collaboration
with Copeland Distillery in
Donaghadee, a producer of gin
which is also planning an Irish
malt whiskey. The linkup is the
outcome of a friendship with
Copeland founder Gareth Irvine.
Willy’s most successful beer
remains one of the original brews
– the Small Axe 4.3 per cent
session IPA.
“We pride ourselves on our
environmentally friendly approach
to brewing and packaging, and
our involvement in the local
community,” Willy continues.
“Our company ethos is
to liberalise the beer landscape
in Northern Ireland by providing
original, no-frills venues for the
local community.”
He founded the business in March
2016 using old dairy tanks on the
family farm near Newtownards in
a former bull pen. The initial ethos
of the brewery was to bring to
market styles of beer not available
in Northern Ireland