Classification and quantification of the key stakeholders Alan Matthews Trinity College Dublin Presentation to Joint UCD/DAFF/Teagasc initiative “Driving a sustainable agri-food sector: the new roadmap for education, research and innovation” Dublin, 29 November 2007 Feedback to: alan.matthews@tcd.ie • • • • Identification of stakeholders The agricultural context Future trends for main stakeholders Some implications for research and education system Stakeholders Rural Policy Environment Primary agriculture Energy Agro-food processing Forestry Consumers Marine Output stagnating, productivity growth poor… 110.0 Milk quota 100.0 90.0 Output index Input index 80.0 70.0 60.0 MacSharry reform 50.0 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 1983 1981 1979 1977 1975 1973 40.0 Total factor productivity growth: Ireland and New Zealand compared 160 140 120 100 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 80 New Zealand Source: NZ Statistics, Matthews 1999 Ireland Total factor productivity trends by system 150.00 140.00 130.00 120.00 110.00 100.00 90.00 Dairy Source: Newman and Matthews Tillage Sheep Cattle Agg. 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 80.00 Despite growing reliance on direct payments… …steady fall in real Family Farm Income per farm Source: Teagasc NFS 2006 Market protection to milk and beef (ad valorem tariff equivalents) Land prices bear no relationship to agricultural returns Source: IMF Commodity Food Price Index 2006M1 2005M5 2003M1 2002M3 2000M8 1999M1 1997M6 1995M1 1994M4 1992M9 1991M2 1989M7 1987M1 1986M5 1984M1 1983M3 1981M8 1980M1 1995=100 Trend in global food prices 160 140 120 100 80 60 40 20 0 EU biofuels targets • 2003 Biofuels Directive Ireland’s performance – 2% biofuels share by Biofuel Share Target 2005 – 5.75% by 2010 2003 2004 2005 2005 (%) (%) (%) (%) • 10% binding minimum target for ALL member 0 0 0.05 0.06 states for biofuels share in transport fuels by 2020 (March 2007) (subject to production being sustainable and secondgeneration biofuels becoming commercially available) Composition of agricultural output 1990 and 2005 2005 Cattle Pigs Sheep Horses Poultry Milk Other livestock products Crops No. of holdings in the State 1855-2005 Source: CSO Farm Structures Survey 2007 Farm types, 1991-2005 Only dairying and tillage show a positive market margin on average… Source: Teagasc NFS 2006 Cash and economic costs as % of average of selected countries 1996-20003 Source: Thorne 2007 Cow numbers: dairy and other 1,600 1,400 1,200 1,000 800 600 400 200 19 75 19 77 19 79 19 81 19 83 19 85 19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 0 Breeding Cattle: Dairy Cows Breeding Cattle: Other Cows (excluding Dairy) Costs and returns in beef production, 2006 25,000 20,000 € 15,000 10,000 5,000 0 Cattle Rearing Total expenses Cattle Other Gross output (market prices) Source: Teagasc NFS 2006 Gross output +REPS Sheep numbers: ewes and total 7,000 6,000 5,000 4,000 3,000 2,000 1,000 19 75 19 77 19 79 19 81 19 83 19 85 19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 0 T otal Sheep Ewes - Breeding Pig numbers: breeding and total 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 250 200 150 100 50 19 75 19 77 19 79 19 81 19 83 19 85 19 87 19 89 19 91 19 93 19 95 19 97 19 99 20 01 20 03 20 05 0 T otal Pigs T otal Breeding Pigs 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 500 450 400 350 300 250 200 150 100 50 0 1985 '000 ha Area under selected crops, 1991-2005 Other stakeholders • • • • • • Agri-food industry Forestry Rural Bioenergy Consumers Environment Share of agricultural area farmed organically 2004 Source: EPA 2006, based on N. Lampkin, U. of Wales Source: CSO Environmental Accounts for Ireland 1997-2004 Implications for research and education • Importance of agreeing long term strategic objectives to inform research/education • High rates of return to public investment in agri-food R&D • Importance of certainty in research funding – core vs competitive grants – own initiative vs demand driven research – economies of scale at fourth level