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Speech by the Taoiseach Enda Kenny T.D.at the COPA-COGECA Presidium Gala Dinner

Introduction

Good Evening Ladies and Gentleman

I am very pleased to be here tonight to mark the COPA-COGECA Presidium and to extend a Cead Míle Fáilte to the representatives who have joined us from across Europe.

Thanks to John and the IFA team for inviting me. And I am delighted that you are using this occasion as an event for the Gathering.

Agri-food Industry – Harvest 2020

For those visiting us here today you will soon realise that farming and agriculture is a big part of our heritage, and equally a big part of our future.

As you may have noticed the Irish economy is undergoing a transformation. We are moving away from an unsustainable economic model based on property, debt and construction to one based on enterprise, innovation and competitiveness.

And I have yet to come across another sector that is more enterprising, innovative or … competitive than agriculture!

I understand that the number of students studying agriculture, food, horticulture and equine courses provided by Teagasc have more than doubled their intake since 2006.

This is excellent news for the future of agriculture in Ireland. Mindful of the ongoing transition between the generations the Government has introduced a number of schemes in our Budgets to assist the transfer of farms to the next generation.

The science involved in farming these days is simply amazing and I’ve every confidence that the future of farming is in good hands with our new generation of young ambitious farmers.

This is important because the agri-food industry is Ireland’s largest indigenous manufacturing industry.

As such it is hugely important to the Irish economy and to our rural society.

In common with a lot of European countries, the sector encapsulates the range of social, economic and environmental inter-dependencies that are vital for national and rural development.

Food Harvest 2020 is our industry-developed strategy which focuses on ensuring that the agri-food sector is developed to its full potential,

The agri-food industry has been central to Irish economic recovery.

It concentrates on the themes of Smart, Green, Growth which are in keeping with overall Europe 2020 objectives of smart, sustainable and inclusive growth.

The Food Harvest report set itself output and export targets to be achieved by 2020 including increasing its primary output by one-third and growing our value added and exports by around 40%.

The second progress report ‘Milestones for Success 2012’ published last year illustrates a confident and ambitious sector which has achieved growth in a challenging global environment.

An overall indication of success is the fact that, by end 2012, the value of primary agriculture and exports has increased by 22% and 12% respectively on the Food Harvest baseline figures.

Agriculture outlook

The medium to longer term prospects for the sector are also bright, with the OECD indicating a generally positive global agricultural outlook up to 2020.

This is also helped by projected increases in global food demand driven by the steady increase of the world’s population to circa 9 billion by 2050.

The net effect is that increased food production may need to rise by at least 60% by 2050 and this is an opportunity on which we are well placed to deliver.

When the EU dismantles the milk quota system, it will be the first time in 30 years that Irish farmers will have the freedom to produce as much milk as they like without being penalised.

The processing sector has started to gear up for this expansion and there are very clear signs that farmers are preparing to increase their milk production substantially.

CAP Reform

At the beginning of Ireland’s Presidency we set out our stall for what we wanted to achieve for Ireland and Europe during our tenure at the helm.

Our Agenda - Stability, Jobs and Growth is ambitious and challenging.

I believe this is particularly the case in the agriculture area, where the reform of the Common Agricultural Policy looms large on the horizon.

Agreement on CAP reform provides us with a real challenge, but also an opportunity to set the roadmap for the development of the sector for the rest of the decade.

And the rewards are potentially great, given the importance of the agri-food sector to economic growth and the creation of jobs, and the important contribution it can make to Irish and European economic recovery.

My colleague, Minister Simon Coveney, is determined to realise these rewards, and he has the full support of the Irish Government.

I know that he has set a very ambitious schedule for the reform of the CAP.

His aim is that the Council will finalise its position on all outstanding issues in February and March, concluding with a comprehensive Council position at the March Council.

This will provide the basis for the commencement of inter-institutional trilogues, with the aim of achieving overall political agreement by the end of June.

None of us underestimates the task ahead.

I am fully aware that it will require intense work and major compromises on all sides.

But I am optimistic.

And I believe the train of events is beginning to move in our favour.

Starting out on our Presidency only seven weeks ago, we said very clearly that for us to succeed, three things needed to happen;

we needed rapid agreement on the EU budget,

we needed rapid progress on outstanding issues in Council, and

all three institutions - the European Parliament, the Council and the Commission - had to be prepared to engage actively in the search for acceptable compromise.

Looking at developments in the last four weeks, it is clear that we are beginning to build momentum in all of these areas.

First of all, there was the very positive vote in the Parliament’s Agriculture and Rural Development Committee on the amendments to the Commission proposals, which was a great achievement for all concerned.

That was followed two weeks ago by the agreement by Heads of State and Government on the EU Budget Multiannual Financial Framework for the period 2014-2020.

I am glad to say that throughout the last year and a half of budget negotiations, Ireland consistently stressed the importance of the CAP for Europe.

After tough negotiations, and concerted pressure from many quarters for large expenditure cuts to CAP of up to 30%, the final agreement reached by the European Council managed to protect CAP funding to a much greater degree than perhaps many had expected.

The Irish Presidency will soon seek the assent of the European Parliament to the deal reached by the European Council. We aim to achieve this in the coming months.

I am confident that the Agriculture Council will finalise its position on CAP reform in parallel with the vote in the Parliament plenary over the coming weeks.

The substantial progress that was made on many of the outstanding issues under the Polish, Danish and Cyprus Presidencies has reduced their number to manageable proportions.

This, and the impetus given by the EU Budget deal, will give us the maximum possible chance to conclude an agreement on CAP reform by the end of June.

And if necessary, we will use our Informal Council in Dublin at the end of May to do whatever work may be necessary to ensure that we achieve our ultimate aim.

I am sure that - with the good will and active engagement of the Parliament, the Council and the Commission - an acceptable compromise will be found. The Irish Presidency will play its part.

In all of this, our efforts will of course be guided by the objectives of the Europe 2020 strategy, which is about delivering growth that is smart, sustainable and inclusive.

That throws down a clear challenge for the CAP, and I think it can rise to that challenge, for two reasons.

The first is because the overall objectives cited by the Commission in its reform proposals - viable food production in the EU, sustainable management of natural resources and balanced rural development - are entirely consistent with the priorities of the Europe 2020 strategy.

They are also objectives that I think all of us fully support.

The second reason is that the CAP has a good track record.

It has underpinned the modernisation of the European agriculture sector, helping it to give Europe a vigorous, consumer-focussed agricultural production base.

The CAP has made a vital contribution not only to economic growth in the EU but also to employment, both directly and in the vibrant agri-food sector.

And the CAP makes a vital contribution to sustainable, long-term global food security.

I believe the CAP is set to continue to play these roles, from now until 2020, and beyond.

And this is what I would like us all to keep in mind as we face the challenge of agreeing CAP reform in the coming months: that it is in the wider European interest, and not just in the interest of the agriculture sector, that a deal is concluded.

I hope that this brings increased urgency to deliberations, together with a greater readiness to compromise and a shared determination to succeed.

Authenticity of Meat Products

Before I conclude I would like to say a few words about the unfolding situation across Europe concerning the contamination of beef products with other meat.

This was first uncovered here in Ireland as a result of the operation of our stringent multi-layer control systems, including the use by the Food Safety Authority of Ireland of advanced testing methods which are not yet routinely used or indeed required under regulation.

This is because we pride ourselves on the supreme quality of our produce.

In conducting these tests the Irish authorities uncovered a problem which might otherwise have gone undetected.

I am confident that the eventual impact and outcome will be positive for consumers and for the reputation of Ireland as a producer of safety and wholesome food.

It is now a pan European investigation of food fraud involving a range of meat products and traders and food business operators.

Following Minister Coveney’s meeting with Commissioner Borg and relevant EU Ministers last week, the EU Standing Committee on Food and Animal Health agreed to a pan European testing programme on meat and meat products for the presence of horse DNA and the presence of phenylbutazone, or ‘bute’.

It has been agreed that the testing of meat and meat products across the EU may commence immediately and results from the first round of tests will have to be reported to the Commission by 15 April. This testing will contribute to a clearer understanding of the situation across Europe.

Our agri-food sector is hugely important to our recovering economy. The sector has shown itself to be resilient in previous crises and we can again collectively overcome the current challenge, restore consumer confidence and retain the pre-eminent position that Irish food occupies in world markets.

It is trusted that the urgent, transparent and effective manner in which we have addressed this issue will help in maintaining the confidence of consumers in Irish and European food.

We will continue to take whatever actions are necessary to deal with the matter in a comprehensive and effective manner.

Conclusion

All of this points to the importance of working together as Europeans to resolve our problems and to face our challenges.

Ireland, more than any other member state, understands what this means.

It is more than two years since we entered an EU-IMF programme of support.

It has been a challenging journey, and continues to be, for many of our people.

The recent announcement of the exchange of the Promissory Notes used to support the banking system for long term bonds will materially improve perceptions of our debt sustainability in the eyes of potential investors in Ireland, and will further restore confidence in Ireland and in our economic recovery.

As a nation we are determined to exit the EU-IMF Programme before the end of this year.

To this we need stability and growth not just in Ireland but in Europe too.

Reaching a deal on the European Union's budget for the next seven years will go some way towards bringing about the kind of stability we need.

For agriculture, a policy area exclusively dealt with at European level, the focus is now on ensuring fair incomes for farmers, quality of life in rural areas, greener practices and a sustainable food sector.

I know you will rise to these challenges as you work together in your respective groups of COPA and COGECA.

I would like to conclude by wishing you a productive conference and a very enjoyable Gathering here in Ireland.