“Perhaps society is finally recognising that quality food is both difficult and expensive to produce, and it must be paid for accordingly” – Edward Carr

Addressing members and stakeholders at the ICOS AGM in Portlaoise this morning, Edward Carr, President of the Irish Co-operative Organisation Society acknowledged that there are high levels of uncertainty facing agriculture, while pointing to promising political and market developments that could support the sector in the year ahead.

“We live in interesting times,” Carr stated. “And while the term ‘unprecedented’ is often overused, it rightly describes the challenges currently confronting co-ops and food producers.”

Mr. Carr welcomed recent shifts at the European level, noting that the 2024 European Parliament elections prompted centrist groups to rethink previous policies that had alienated farmers.

“The previous Commission’s overly purist Green Deal and dismissive attitude towards agriculture played a significant role in driving voters toward the political extremes,” he said. “Now, we see a more balanced approach, with new Agriculture and Environment Commissioners, Christoph Hansen and Jessika Roswall, showing early signs of being more responsive and pragmatic.”

Edward Carr highlighted a particular example in the easing of Corporate Sustainability Reporting requirements, which he described as “a pragmatic acknowledgment of the fact that it’s hard to be green when you’re in the red.”

However, he reminded the meeting that legal environmental commitments remain in place and must be met, while he acknowledged the ‘excellent progress’ being achieved in the sustainability credentials of Irish agriculture.

On market conditions, Carr noted that prices for milk and meat are at unprecedented levels, supported by currently weak global supply, however this is countered by cost bases within the agri-sector that are constantly rising.

“This trend confirms what we’ve been saying for years. Farming has been pushed into a position where it is unattractive to younger generations. The costs are high, inflation is locked-in, the hours are long and the rewards are limited. Perhaps society is finally recognising that quality food is both difficult and expensive to produce, and it must be paid for accordingly.”

Edward Carr also cautioned that global geopolitical risks, including continuing conflict, the potential trade impacts of the new US administration and the rise of authoritarian voices in Europe, could threaten stability.

“The European project, and in particular the Single Market, remains vital for Ireland’s economic future. We need strong leadership to ensure that Europe continues to work for its citizens, farmers included, not just for ideological visions.”

The ICOS president stressed the importance of environmental responsibility, particularly in relation to Ireland’s Nitrates Derogation.

“We’ve made huge strides in improving water quality, though the time lag between action and results remains frustrating. Still, the perseverance of co-ops, farmers, Teagasc, and the Department of Agriculture is beginning to bear fruit. Retaining the derogation is essential, not just for dairying but for the entire agri-sector.”

Looking ahead, Edward Carr identified a major funding challenge as the EU prepares its post-2027 Multiannual Financial Framework (MFF).

“Agriculture and the CAP are under pressure, with serious risk that funds could be diverted to other priorities. This would be deeply damaging, not just to the Basic Payments Scheme, but also to Pillar 2, which is critical to delivering sustainability goals. In fact, we don’t need two pillars, we need a third.”

“CAP is the foundation of a sustainable and competitive farming and agri-food sector in Ireland and Europe. It plays a vital role in maintaining farm incomes, supporting rural communities and driving progress on climate and environmental goals across the EU.

“What we need is a strong, practical and properly and fully resourced CAP; one that cuts red tape and empowers farmers to focus on producing food not paperwork. Farming in Ireland and across the EU is struggling to attract young farmers.

“The Commission must not risk accelerating the generational renewal crisis. Rather than potentially seeking mechanisms to undermine and defund CAP, the European Commission must stand by its farming citizens, underpin food security and protect this essential policy.”

The ICOS president concluded by urging policymakers to stand firm in defence of farming.  “Our sector is ready to do its part—but we need the tools and resources to do it.”

ICOS (Irish Co-operative Organisation Society) represents co-operatives across Ireland, including dairy processing co-operatives and livestock marts. These organisations collectively generate approximately €16 billion in turnover, with 175,000 members and employment for 12,000 individuals in Ireland, plus an additional 24,000 overseas. In total, Ireland has around 1,000 co-ops, with the largest 100 employing roughly 40,000 people.