Food Harvest – the original and best?

public service that Ireland’s major economic crash from 2008 to 2012 was the result of putting all our eggs in a very big ‘property and finance’ basket. 

Henceforth, Government policy makers – having learned an important lesson – were to think across broader economic categories. Into this new way of managing the economy came the economic opportunity – post EU quota abolition – of broad agricultural expansion through the Food Harvest strategy (remember that?) and its follow-up FoodWise. 

Key goals and targets 

Let us remind ourselves of some of the goals set by Food Harvest 2020. Generally speaking, it aimed to increase production and exports. It focused on achieving a 50 per cent increase in dairy production by 2020, among other targets, and aimed to improve the sector’s competitiveness and sustainability. 

The primary goal of increasing production across various agricultural sectors, with the increases in dairy output forming a central feature of the strategy, has been well achieved. Updated versions of it, specifically FoodWise, places more emphasis on improving the value and value-added profile of production and exports. Figure 1 from the Central Statistics Office (CSO) highlights the ongoing improvements in the value of our food production sector, proving the success of the economic strategy to maximise the contribution, in economic and social terms, to the Irish economy through both volume and value growth. 

Economic growth continues to be integral to the success of the Irish economy and the agri-food sector is making a valuable contribution to that growth requirement. The original agri-food strategy aimed to contribute to economic recovery in Ireland by expanding the agri-food sector and creating new jobs. That strategy has been, by any standard, an unparalleled success. 

The Food Harvest 2020 strategy sought to improve the competitiveness of Irish food and drink products in the international marketplace by focusing on quality, environmental standards, and sustainability. The strategy emphasised the importance of sustainable agricultural practices, including environmental protection and resource management.
Figure 1 shows how successful the Food Harvest strategy and its updated versions have been; so much so that in 2024, agricultural output reached more than €12.2 billion compared to an average of €6 billion in the period 2006 to 2010. 

• The value of agricultural output at basic prices rose by 8 per cent (+€928m) to €12.2bn in 2024, driven mainly by a 17 per cent increase in milk prices. 
• Milk contributed an additional €575m (+16 per cent) to the value of agricultural output, bringing its value to €4.1bn. 
• The value of crops was up by 5 per cent (+€127m) to €2.6bn, mainly due to higher prices (+4%). The price of other crops grew by an average of 6 per cent, while forage plant prices rose by 4 per cent. 
• The value of livestock rose by 4 per cent (+€176m) to €4.7bn. Except for pigs, the price of all other livestock increased.   
• Cattle prices grew by 5 per cent, but this was tempered by lower volumes (-3 per cent) resulting in their value rising by €51m to €3.1bn. 
• The price of sheep was up by 18%, but with volumes contracting (-3 per cent), their value rose by 14 per cent (+€49m) to €394m. Pig values grew by 6 per cent (+€40m) to €708m despite minor price drops (-1 per cent). Source: CSO. 

Successful strategy 

All in all, this was a huge success with the value of food and drink exports increasing over the growth period from €7.8 billion in 2010 to €17 billion in 2024. And CSO figures show direct and indirect employment in the sector at 220,000 jobs. FoodWise 2025 predicted a €19 billion value on agri-food exports by the end of this year. The recent increases in dairy and meat prices should bring end-of-year outcomes within touching distance of that ambitious target. 

This growth in Irish agricultural output included – and did not miss a beat – the Covid-19 years from 2020 through to end 2022. Not only did the sector keep all our dairy processors and meat factories open and functioning but also continued to provide dairy and meat products for several million ‘local’ Ireland-based consumers and the 45 million global customers of Irish meat and dairy. It must be hoped that this inherent resilience can continue in the years ahead, even allowing for the various challenges facing the sector including environmental, climatic, tariff and other potential trade barriers. 

Managing constraints 

Notwithstanding the challenges of managing both the nitrates directive constraints and the dubious science around insisting that methane emission from food output is the same as methane for industrial activity or mining, in pure food-economy terms the major growth phase, post quota abolition, seems to have plateaued. So as part of a future plan, Ireland Inc. needs to craft, in conjunction with industry, State aid supports that are specific to the industrial structure and competitive challenges facing its largest indigenous sector. Very importantly also, timing wise, German opposition to easing EU State aid controls has diminished greatly, with the May 2025 German coalition Government seeking removal of restrictions on subsidising energy prices for its heavy industry! 

Kick back on attitudes 

The noise around the cow-ification of Irish carbon emissions must be counterbalanced by the global reality set out in Article 2 of the Paris Agreement that emissions-reduction policies must not negatively impact food production. 

Irish agri-food companies have demonstrated excellence in meeting global demand for grass-based meat and dairy products which has and can continue to deliver huge economic impact in the modern Irish economy. 

The economic contribution of the agri-food sector principally comes from the multiplier impacts across the economy of Irish agricultural output purchased by Irish food and drink processors annually rather than from gross value added/profit. This is a key factor in assessing the future contribution of the sector. Notwithstanding very recent price and margin improvements, defining future growth targets in terms of major increases in value added comparable to sectors like pharmaceuticals or IT is both naive and unrealistic. 

For the most part, food producers and processors do not possess patents or monopoly pricing capability and are prevented by law from exercising selling power by setting retail food prices. This is in direct contrast to pharma companies or smart phone manufacturers.