The 2024 Irish Farmers Journal – KPMG Agribusiness Report

In the 12th edition of the Irish Farmers Journal – KPMG Agribusiness Report, Tom McEvoy and our Agribusiness team examine the future of food production on the island of Ireland, from inside the farm gate all the way to the very latest developments in consumer foods.

This publication's overall aim is to highlight the challenges facing the industry but also to show the resilience and opportunity for growth across the sector. The need for regulatory certainty, continued government support is clear and so too is the need for technology adoption to allow the ambition of everyone in the sector to produce the best possible product. 

Farm outlook

The challenges facing food production in Ireland are multifaceted. From market volatility, environmental regulations, climate risks and policy uncertainty to labor shortages, access to land and an aging farmer population.

However, amidst these challenges lie numerous opportunities. Despite the dominance of the dairy industry, export data reveals a diverse portfolio including beef, sheepmeat, pigmeat, poultry, drinks, seafood, horticulture, and prepared consumer foods.

Market diversification beyond traditional territories like the UK, into emerging markets such as China, the US, and Germany, offers resilience against economic fluctuations. 

Ireland's reputation for quality produce, sustainability, and innovation allows for premium pricing and added value along the supply chain. Collaboration within the industry fosters knowledge-sharing and product development, driving overall growth. 

Succession planning

Over the past two decades, the demographic of farmers in Ireland has shifted, with an aging population raising concerns about succession and the future of agriculture. Both the Republic of Ireland and Northern Ireland have seen an increase in the average age of farmers, with significant portions over 60. 

There's a need to encourage young farmers into the sector, but barriers like high costs and lack of support persist. Succession planning, involving the transfer of knowledge, skills, and ownership is crucial for the sector. 

Proactive measures are essential to ensure a sustainable future for Irish agriculture, with collaboration between government, farming organisations, and the wider community crucial for success.

Prepared consumer goods – Food processing

While Prepared Consumer Foods industry faces rising costs, they are increasingly turning to innovative solutions such as lean manufacturing techniques, to enhance efficiency and reduce expenses.

Despite a recent decline in interest in plant-based alternatives, there remains a strong focus on product quality and sustainability, with hybrid products gaining traction. Waste prevention and valorisation have emerged as crucial trends, reflecting a broader industry shift towards minimising inefficiencies and sourcing local ingredients to ensure supply chain security. In recent years, the food processing industry has emphasised adding value.

There has been a substantial growth in the prepared consumer foods (PCF) export sector in the Republic of Ireland, reaching €3.1bn in 2023 (Bord Bia, 2024). This growth, driven by value-added products aimed at end-use consumers, marks PCF as a resilient and distinct sector within food and drink exports. 

Global market outlook

In the face of surging global demand for beef, Irish farmers confront formidable challenges in competing against dominant producers like Brazil and Australia. Despite comparable farm-gate prices to major export markets, Ireland's beef industry struggles to maintain financial viability, relying heavily on support payments.

While Asian markets offer potential growth opportunities, intense competition and looming environmental regulations threaten Ireland's export prospects. The prospect of increased Brazilian production and the potential ramifications of a UK-Brazil trade deal further compound these challenges.

Amidst these headwinds, the future of Irish beef hinges on the industry's capacity to innovate and add value to its products. Adaptation to evolving market dynamics, coupled with strategic initiatives to enhance competitiveness and sustainability, will be paramount in securing the industry's long-term viability and relevance in the global marketplace.