Brewing up interest in niche markets

DEPRESSED prices continue to leave many producers feeling powerless this year. The Teagasc Farm Survey for 2015 records the average farm income at €26,526, but this is predicted to fall with this year’s low prices in the dairy and tillage sectors in particular.

Without a doubt, farm incomes are linked to direct payments.

For many farmers, once production costs are met, the only profit comes from direct payments. Critics argue if farmers continue to be price takers then they must deal with the consequences of market volatility.

Producing commodity products for a commodity market is generally a safer bet, but leaves farmers with no control over prices.

Farmers producing for niche markets certainly take higher risks but it can be rewarding on many levels. In addition, operators in niche markets must use everything including their own personal story and product provenance to sell their goods, and this is certainly something that Irish farmers could exploit more.

One of the growth areas is the drinks sector.

Ireland now boasts over 100 craft breweries. According to Adrian Hyde from Munster Brewery in Youghal, Co Cork: “The combined output from these breweries still only represents 2pc of the drinks market here in Ireland, so there is plenty of room for expansion.”

Ireland is certainly experiencing an explosion in small-scale distilling and brewing.

Driven by consumer demand, the level of innovation in the sector is impressive.

Farmers have been growing malting barley for years for that distinctively Irish drink, Guinness. So for many farmers the concept is not new. Many of the smaller breweries and distilleries are working hard to strengthen the link between where their raw materials come from and the end product. Provenance is the buzz word, with emphasis also placed on crops grown being in specific areas with different soil types that can influence the final taste of the beer or spirit.

Some of the smaller breweries grow their own crops, but there is clearly a role for more farmers to get involved in this enterprising area.