Every €1 of exports of dairy goods represents a 90 cent spend within the Irish economy. In stark contrast, every €1 exported by multinational companies represents a 10 cent spend within the Irish economy.

CBAM is essentially a tax on food production that must be prevented

This week, a delegation led by ICOS President, Edward Carr met with Minister Martin Heydon to discuss the ICOS Pre-Budget Submission. 

ICOS President Edward Carr outlined to the Minister that the “the Irish agri-food sector is facing very significant uncertainty at farm and processing level caused by geopolitical and trade risks, complex regulatory issues surrounding the future of Ireland’s nitrates derogation and potentially very serious cuts to the future CAP budget. This level of uncertainty means that our prospects of generational renewal and succession form a fundamental question now facing the entire sector.”

Edward Carr continued:

“Despite these challenges, the sector continues to demonstrate resilience and innovation. The agri-food sector remains Ireland’s largest indigenous industry, employing 6.1% of the total workforce. Irish agri-food exports continued to perform strongly in 2024, with total exports valued at €19 billion.

“In particular, dairy sector exports were valued at €6.3 bn in 2024, with over 1.6 million tonnes of product being shipped to 140 countries worldwide. This is achieved with one of the world’s lowest carbon footprints for dairy and beef. Importantly, every €1 of exports of dairy goods, represents a 90 cent spend within the Irish economy. In stark contrast, every €1 exported by multinational companies represents a 10 cent spend within the Irish economy.”

Edward Carr said that one of the main requests of the Minister is to deliver on the Government’s commitment to advance an income stability measure for the sector.

He said “The exposure of the agri-food sector to potentially damaging US trade tariffs makes the introduction of an income volatility measure more important than ever before.  The Government in last year’s budget promised to advance an income volatility measure, which must now be delivered on. In simple terms, the volatility measure supported by ICOS would enable a farmer to use periods, when market returns are higher, to create a modest “rainy-day” fund to support them during future periods when market returns are weaker. 

In relation to the Carbon Border Adjustment Mechanism (CBAM) tax on fertiliser, Edward Carr said “this proposal is essentially a tax on food production that must be prevented. At our meeting, the Minister strongly indicated his support for the removal of fertiliser from the CBAM tax from the 1^st of January next year. However, we need to see a clear plan of engagement with the European Commission on this matter.”

The ICOS Pre-Budget Submission is recommending a range of specific measures to address the priority issues facing the sector and family farms, including the following:

• Income volatility measure.
• Support the competitiveness of the sector and our grass-based model.
• The retention of Ireland’s nitrates derogation.
• Support generational renewal and succession in the sector.
• Address the increasing levels of bTB.
• Develop the bioeconomy based on co-operative principles.
• Promote Ireland’s farmer owned and controlled co-operative business sector.