Sterling drop worrying farmers
THE Irish agricultural export market is “heavily dependent” on our nearest neighbour the UK which dramatically exited the EU last week in a shock referendum.
Sean Clarke, IFA regional development officer, told The Corkman that the biggest single worry is the dramatic drop in sterling since the shock UK vote.
“If this gap between sterling and the euro continues to widen then it’s a very worrying time. Our agricultural exports to the UK are worth €4.4 billion per year. That is phenomenal. Even to reverse backwards in 1973 over 70% of our total agricultural exports went to the UK with a price tag of €330 million. Our nearest market which wants our product the most is right on our doorstep,” he said.
Mr Clarke said not only was the UK and Ireland shocked at the dramatic EU referendum but equally so was the world.
“This dramatic exit even took the experts by surprise. It was thought that all would be all right on the night and that the people who were in the undecided would simply play it safe and stay in the EU and keep the status quo. This is a major shock to everyone,” he said.
He said the Irish dairy sector has already taken a severe hammering with the price of milk which has tanked and coupled with this are the poor grain prices.
“There is a lot for farmers to take on board. While there is a two year window of exit for the UK and possibly longer as the process won’t start until January, but the overall mood really is one of uncertainty. No one expected this result and it’s where we go from here is what is important,” he said.
He said the IFA met with various banking institutions when the price of milk began to drop and when farmers began to struggle but now the farming community also has to face Brexit. It was his view that the Government needs “to get back into the saddle.”
“I’m aware an Taoiseach has tabled further discussions but things do need to settle down. The UK market is not closed down to us because its people voted out and we are not barred. But it’s the sterling which we need to strongly watch. €4bn is a lot of money. We need to be mindful and plan for the future,” he said.