Market Report
Following a wet February and early March, the spell of favorable weather has allowed growers to make good progress with planting. The marketing season for most of the outdoor vegetable crops is nearing an end, while the salad crops, such as cucumbers and tomatoes have started their marketing seasons.
The COVID 19 crisis has seen an increase in demand for suppliers of vegetable produce going to retail, however, those supplying the foodservice sector and farmers markets, have seen a collapse in sales. This has been particularly acute in the mushroom sector.
The ornamental plant sector is by far the hardest hit with devastating consequences from the sudden drop of demand in excess of 80%. The farm gate value of the sector is estimated at €77m per annum including exports of €19m. It is vital that this sector is supported through this challenging time to continue to grow markets and take advantage of our high plant health status.
The viability and survival of the complete ornamental sector in Ireland, and all related jobs and businesses, is now at stake. This sector does not qualify for direct payment support from the CAP and has always functioned as a purely market-driven sector under the most competitive terms. Its socio-economic contribution at the Irish and EU international levels is immense. Ornamental products also positively contribute to the quality of life and a healthy lifestyle for all citizens, including mental health.
Horticulture producers depend on seasonal foreign workers from the other EU Member States to plant, manage and harvest their crops. Due to travel restrictions in some European countries growers have encountered difficulties in getting these workers into the country. Some companies have resorted to charter flights in order to get workers into the country as commercial flights have ceased. The situation is not critical at the moment however if seasonal workers are not available by May then this will have serious consequences for the soft fruit and vegetable sectors in particular.
Activity since last National Council
- In relation to COVID 19, IFA wrote to the Minister asking the government to classify horticulture workers as essential workers, and therefore we need exceptions to allow these workers to enter the country in the event of a travel ban. In the event of a complete public shutdown, horticulture workers must be allowed to travel to their places of work.
- IFA have written to the minister detailing the severe impact of the crisis on the amenity sector and asked for the following to be implemented.
• Reopen garden centres, as they provide the essential materials for individuals to carry out gardening, which is vital from a mental health and well-being perspective during this unprecedented time.
• Extend the newly adopted Temporary Framework for state aid to the ornamental sector. A flexible approach must be adopted to the existing CAP rules and for extraordinary support measures.
• Provide access to low-cost credit/finance for all horticultural operators, including the Credit Guarantee Scheme and COVID-19 Loan Scheme.
• IFA have engaged with the Department of Employment Affairs and Social Protection (DEASP) regarding sourcing workers for the Horticulture sector in the event that foreign seasonal workers are not available
• We have circulated a survey to growers in order to gauge the number of staff which are required to enter the country in the coming weeks as seasonal workers. We are also asking these growers if they would be interested in chartering aircraft as part of a group approach.
• We have been in renewed contact with the Department of Business, Innovation and Enterprise (DBEI) regarding our submission to allocate more work permits to the horticulture sector
• IFA have continued discussions with the main retailers regarding the impact of COVID 19 and increased input costs at the farm level. IFA are demanding that growers receive sustainable prices which recognise the increasingly higher standards of Irish production and the extra costs associated with implementing new Health and Safety guidelines due to the pandemic.
• There was a further meeting of the apple development group whose purpose is to produce more native apples in order to reduce our dependence on imports.
EU/COPA Developments
- IFA have been in contact with both the EU Commission and COPA in relation to the impact of COVID 19 on the Horticulture sector.
Upcoming Events / Issues
- IFA will continue to work on the issues affecting the sector in relation to the COVID 19 pandemic.
- Work will continue with Bord Bia in relation to the EU fruit and vegetable campaign. The promotion opportunity is for 80% EU funding towards a significant (all public) generic promotion of fruit and veg. The potential funding is €1m over 2 years with €100k coming from industry.
