I am always intrigued at what Japanese agriculture sees as it comparators. Now their gaze has fallen on Ireland--interesting for me because I have given little thought to Irish agriculture.
The Irish are just getting themselves out of the hole created when the financial markets collapsed in 2008. While there is still very high unemployment, agriculture is doing pretty well. They are putting forward a plan where exports increase by 50 percent by 2020.
Exports grew by 14 percent in the first half of the year in comparison to the same period last year. Incomes were up 28 percent over the disastrous year before. This year, as a result of good prices for milk, meat, and grains, incomes are normal.
From 2001 to 2007 during the economic bubble, the fortunes of agriculture were not nearly as good as those in the manufacturing sector but the price of land went up, and there was lots of employment.
When the bubble broke, jobs outside agriculture were scarce and the rate of farmers working out fell from 42 percent to 30 percent. Most worked out in the construction sector when 90 thousand buildings were created per year, while only about 10 thousand will go up this year. Agricultural land reached a high of 50 thousand euros per hectare, but prices are less than half that now.
With the bursting of the bubble, people's attitudes toward agriculture changed. And while in the past, no one wanted to take over the farm, people wanting to major in agriculture increased by 70 percent over three years. While once agriculture was a dead-end industry, young people are starting to realize its essential competitiveness in Ireland.
Last year the 2020 year ag plan came out. Plans include increasing exports from 8 billion to 12 billion. (That's the 50 percent I was talking about). Within those numbers are 40 percent increase in beef production and 50 percent for dairy.
In 2015, the supply management system is going to end, and farmers are anxious to increase their exports--up to 85 percent if possible. At the moment, Ireland is producing food for 36 million people. Hopes are that number will increase to 50.
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