Bailout for Irish beef farmers

The Irish government has agreed to fund a 50 million euro aid package for beef producers as part of a wider Covid-19 recovery plan.

It is being justified on the basis of losses the industry suffered because of the food service sector closing down at the peak of the lockdown across Europe.

While these problems have eased, business remains far below normal trading conditions.

The Irish beef industry has also been hit by Covid outbreaks in abattoirs, which reduced capacity and created bottlenecks for farmers selling stock.

The aid will be paid to an estimated 42,000 farmers on a headage basis for stock sold from February 1 to June 12, subject to a limit of 100 animals.

Aid has been estimated at 100 euro per head.

The aid cannot be paid until final approval is secured from the European Commission and EU farm commissioner Janusz Wojciechowski is concerned member state schemes could distort competition.

Meanwhile, France has agreed further aid for its wine industry, with Champagne sales in particular devastated, presumably because people have had little cause for celebration.

The UK trade minister, Liz Truss, has made much of an informal postBrexit trade deal with Japan, which will open the way for the export of UK pigmeat.

Japan is a major potential market and the deal, yet to be formally signed because the UK cannot do so until the Brexit transition period ends, will pave the way for a reduction in tariffs.

However, it seems to offer nothing new as the EU already has a free trade agreement with Japan, recognised as one of the world’s biggest free trade deals. And as a member state, the UK already gained from this for the export of agricultural products.

A more crucial issue for Japan is whether the UK has a trade deal with the EU27 that will allow UK-built cars from Japanese manufacturers to retain tariff-free access to the EU.

In the battle against cheap food imports after Brexit, farmers have a surprising new ally.

The creation of the government’s Agriculture and Trade Commission is something of a damp squib, in that it only has an advisory role.

However, Greenpeace has urged major retailers and fast food businesses to block trade with the Brazilian company JBS because of allegations about damage to rainforests in Brazil to create grazing land for cattle.

Picture: Shutterstock. France is to provide further financial aid for its wine industry as Champagne sales fall.