‘Brexit could see beef prices double’

As sterling fall hits farmers, many fear total wipe-out

FARMERS say they are already being hit by Brexit and predict a disastrous future for their industry that could lead to massive price hikes on food.

Some fear that as a result of Britain leaving the EU, subsidies will be slashed – and that the price of beef would then double, as beef farmers rely heavily on grants.

Cork agricultural land agent Michael Brady said: ‘The biggest number of farmers are beef farmers and they make no money.

‘They make on average about €15,000 a year. Brexit could be the tipping point.’

As evidenced in RTÉ One documentary Brexit: Farming On The Edge, farmers here are terrified that when the UK ends its massive €8billion net funding to the EU’s Common Agricultural Policy, the subsidies which keep them in business will dry up.

Irish farmers get €1.5billion in subsidies from the European Union every year. It is estimated that three-quarters of farmers would not survive without them.

In the documentary, which airs tonight, Cork beef farmer Billy Nicholson told George Lee: ‘If the Single Farm Payment was gone, for us to be efficient, beef would have to double in price.’

The drop in sterling, which came immediately following the Brexit vote in June 2016, is currently leading to cancelled orders for our food and drink products.

And already, one tomato grower lost a huge order from the North just before Christmas because of the fall in sterling. Matt Foley, of Rush, north Co. Dublin, said he was badly hit just recently and feels that Irish farmers are being left on the scrapheap.

A supermarket chain which buys some of the 25million tomatoes he produces a season for its stores in the Republic and Northern Ireland sent him a one-line email last month, stating: ‘We are not in a position to commit to a 2018 programme.’

Mr Foley, who has dealt with the company for over 20 years, said: ‘That was it, a one-liner. Sterling has declined so our tomatoes are costing them 20% more in Northern Ireland because they are paying us in euro.

‘That is 12% of our sales. We feel very disappointed as we gave quite a bit to that company over the years... When you were useful you were used and now you are not wanted.’

Another knock-on effect from Brexit has been noticed in the busy market town of Elphin, Co. Roscommon. Farmers from the North used to flock to the town’s twice-weekly mart but now hardly any attend. Auctioneer Martin Brady said: ‘One time you would land in the car park and see ten or 12 or 15 Northern cars at least. Today I see one out there. Very few Northern men are coming to the marts, due to the drop in sterling.’

Connemara hill farmer Brendan Joyce, who has 400 black face sheep, told the programme he relies on EU funding to keep going after 15 years of decline. But he said the grants were dependent on him carrying out environmental protection work, such as repairing traditional drystone walls and retaining the diversity of plants.

‘People think CAP is just for farmers, but the spin-off is for us all, whether it be the environment or high-quality food at affordable prices,’ he explained.

Britain buys €4billion worth of our agri-food goods every year, which accounts for more than 40% of our farming exports.

‘The spin-off of CAP is for us all’