Joint Oireachtas Committee on Environment, Culture and the Gaeltacht Department of Agriculture, Food and the Marine Briefing

paper for Members of the Committee 20th June 2013 Heads of the Bill The Heads of the Climate Action and Low Carbon Development Bill provide for sectoral roadmaps to be developed that will in turn inform the development of a national low carbon roadmap. The Minister for Agriculture, Food and the Marine has been requested to prepare such a sectoral roadmap for agriculture, and in this regard the Department has commenced its work. The Department has had discussions with Teagasc with regard to the provision of research and advice in the preparation of the sectoral roadmap. The Minister welcomes the inclusion of the Director of Teagasc as an ex officio member of the proposed Expert Advisory Body to be established under the Heads of Bill. The precise role, functions, legal basis and powers of the body will require further detailed consideration, and the Department looks forward to contributing to this process. In 2012, Teagasc prepared a detailed Marginal Abatement Cost Curve (MACC) study which outlines its analysis for cost effectively mitigating agriculture emissions to 2020. The analyses in this report were conducted in the context of Food Harvest 2020 and, using this strategy as a reference scenario, Teagasc were able to explore the additional potential for GHG abatement in Ireland by the year 2020. This report can be accessed at http://www.teagasc.ie/publications/2012/1186/1186_Marginal_Abatement_Cost_Curve_for_I rish_Agriculture.pdf. Following the publication of the NESC final report, Teagasc has commenced a qualitative assessment of pathways towards a carbon-neutral agriculture sector by 2050. Teagasc expects to have this work completed during the summer months, and this will be valuable in informing the Departments preparation of the first sectoral roadmap. Putting Agriculture Centre Stage in Climate Policy Development International level At the highest international level, the Department of Agriculture has actively participated in meetings and conferences of the United Nations Framework Convention on Climate Change (UNFCCC) over the past number of years. The basis for work on climate change is Article 2 of that convention which sets out its principal objective - stabilization of atmospheric levels of GHG and includes specific reference to the fact that this must be done in a way that ensures that food production is not threatened. (Appendix A) Food production is thus at the heart of the principal objective of global climate effort under UNFCCC and Irish agriculture is above all about the sustainable production of

food. Yet, although the convention is in place since 1992, there was very little discussion on agriculture and food production at UNFCCC level until recent years when Ireland and a small number of other interested parties raised these issues. In this regard, Ireland has in particular been one of the strongest supporters of a Work Programme on agriculture. Progress has been made, albeit slowly, and at Durban in 2011, the Conventions Subsidiary Body for Scientific and Technological Advice (SBSTA) was tasked with considering issues related to agriculture during 2012. Doha saw further discussion on agriculture and SBSTA is to continue this work during 2013. Throughout this process, Ireland has been the main driver within the EU for a UNFCCC decision on agriculture and is leading the EU effort which seeks the establishment of a work programme on agriculture. Ireland has also been raising the issue of agriculture at EU Commission level. In this regard Ministers Hogan and Coveney, as well as officials of our two departments, have worked closely together. Both Ministers met with the Commissioner for Climate Change in September 2011 and both departments have continued to press the issue in 2012. In October the Commission said that they understand and acknowledge the nature and carbon efficiency of the agriculture sector in Ireland, as well as its importance on economic and social grounds. This represents a significant step forward for Irish agriculture following a great deal of work in the past 18 months. During 2012, the Commission proposed a decision on Land Use, Land Use Change and Forestry. DAFM together with DECLG put a huge effort into negotiating a more favourable proposal. Ireland, through DAFM currently holds the lead negotiator role for the EU on agriculture for the UNFCCC sessions. The Bonn session, currently under way (June 2013) during our Presidency of the EU, presents an opportunity to further raise the profile of agriculture both within and outside the EU, with the aim of advancing the discussion further, including to Ministerial level at the next UNFCCC Conference of the Parties in Warsaw next November. The agriculture sector, which is responsible for 10-12% of global greenhouse gas emissions, and some 32% of the total in Ireland, has a key role to play in reducing emission levels. While, it is internationally recognised that the potential for reduction is limited compared to other sectors, Ireland is nevertheless to the fore in seeking new and improved, economically viable measures that can help Irish agriculture to become even more efficient. Overarching all of the debate about agriculture and emissions is the reality that the world must prepare to feed a global population predicted to reach 9 billion by 2050. This must be done using the most sustainable forms of food production possible. It is important to acknowledge the help and assistance of the Dpartment of the Environment, Community and Local Government, as lead Department on climate change, the Department of Foreign Affairs, Teagasc and the EPA. Significant advances have been made as a result of a great deal of work by all concerned. There is a lot more

work to do, but we are seeing some positive movement at UNFCCC and EU levels and we are fully committed to continue this work in meeting the challenges ahead. Future Ambition for Climate Action at EU and International Levels The State clearly faces very difficult challenges in terms of the existing obligations for 2020. The 2009 Effort Sharing Decision included agriculture in the non-ETS category, and tasked Ireland with a huge 20% reduction target for the combined sectors of Transport, Energy, the Built Environment, Waste and Agriculture. The level of emissions from agriculture has been steadily decreasing as a result of reductions in the national herd, as well as significant improvements to production efficiency including fertiliser and manure efficiency, grassland management, improved breeding and better fertility. Nevertheless, the agriculture sector contributes some 40% of the non-ETS emissions in Ireland and this will rise as a proportion as technology produces greater efficiencies in the other sectors. Whilst we must face up to the reality of the Effort Sharing Decision and try to reach the targets that were set for 202, it is vital that we continue to make the strong case at EU and UNFCCC levels that there is an inconsistency in this rather blunt approach to target setting as far as agriculture is concerned, when it is placed in the very real context of the ever increasing worldwide demand for additional production of food. Ireland feels that a platform must be put in place to build on the carbon efficiency and sustainability of the EU agriculture sector, avoid downward pressure on food production, and maintain and enhance the EU contribution to global food production/security.

This is a very important time in terms of influencing EU and international thinking in relation to setting future levels of ambition in the context of climate change. The Department is finalising material for the Irish agriculture response to the two recent European Commission documents: European Commission Green Paper - A 2030 framework for climate and energy policies; and the The 2015 International Climate Change Agreement: Shaping international climate policy beyond 2020

This material will feed into the national response to both papers which will be provided by our colleagues in the Department of Environment, Community and Local Government as the lead Department. Ireland must continue to press for recognition of our quite unique greenhouse gas emissions profile in a European context, which is due in a large part to the high share of emissions associated with livestock in the agriculture sector. What makes Ireland unique is the size of our agriculture sector as a proportion of the national economy in our overall economy.

It makes no sense to set targets that could lead to a reduction in production in an agriculture system that is recognised as one of the most efficient in the world. Such an approach carries the very real risk of carbon leakage, as production is taken up by less sustainable systems in other parts of the world with the consequence of overall increases in emissions in global terms.

Sustainability of Irish Agriculture Progress has been achieved over the last 20 years in Ireland, in terms of improved efficiency, steady reduction in emissions associated with food production while maintaining overall production levels. The work undertaken in 2012 by the Secretariat of the National Economic and Social Council towards a new national climate policy in consultation with the various stakeholders has been very important in helping to inform Government proposals and policies. The Department of Agriculture, Food and the Marine engaged in depth with NESC at expert level with a view to explaining o o o o o the costs and options of reducing greenhouse gas emissions in the sector; the implications of setting targets which exceed the capacity of the sector; the actions being taken to reduce emissions in the sector; the evidence that these actions are effective; and the need for a deep analysis of the efficacy of proposed actions, in a very complex system, before policy decisions are made.

Ireland as an efficient food producer The European Commissions Joint Research Centre has carried out a comparison of agriculture systems in the EU, and it is clear that for beef and milk, Ireland is one of the most efficient producers in Europe especially when the impacts on ecosystem carbon are considered. Figure 1 shows that our dairy production system is the joint most efficient in Europe, with Austria.
Figure 1

Land Use Land Use change CO2 Energy CH4 N20

The JRC has also found that the carbon footprint of Irish beef is below the EU average, and is joint 5th lowest in the EU. See Figure 2 below.
Figure 2

Land Use Land Use change CO2 Energy CH4 N20

The JRC report also compared production in European countries to beef and lamb produced in Brazil and NZ respectively. This comparison confirms Irelands superior performance in terms of emissions per unit of product. The JRC findings supported an earlier FAO report (2010) which compared emissions associated with milk production from various different systems around the world: that analysis shows that temperate grassland production systems are the most efficient. Both of these reports represent external international verification of Irelands own analysis that our milk and beef production systems are among the most efficient in the world. Irish Agriculture now contributes 32.1% of total GHG emissions in 2011 up from 26.8% in 2007 and is expected to increase further to 40% relative to total national GHGs by 2020. The chart below highlights the close link between cattle numbers and emissions. Although in recent years there has been a slight decoupling of this link as fertiliser efficiencies and other management practices improve grazing management, breed improvement etc

The United Nations Food and Agriculture Organisation has also carried out a detailed study of emissions associated with milk production from various different systems around the world. Its analysis shows that the temperate grassland production system, which is the predominant system of production in Ireland, is the most efficient in the world The continuation of a joined up approach which features sustainable growth, allied to smarter greener agricultural systems, is key to the continued expansion of the sector. Benefits include,

achieving economies of scale, lower carbon footprints on a per unit of production basis; and progressive protection of the environment when the system is well managed and monitored.

The importance of Agriculture to the National Economy The importance of the agriculture sector to the Irish economy in these challenging times and its significant contribution to the increase in agri-food exports must be recognised. The 2012 main Irish Agriculture statistics are at Appendix B and include the following: o o o 8% of total employment 7.7% of GVA 10.8% of exports or 9BN in monetary terms

Significant economic, environmental, employment and rural development benefits continue to accrue to Ireland. These are set to expand further with the rollout of Food Harvest 2020; reform of the Common Agricultural Policy post 2013; the lifting of milk quota restrictions in 2015; and the opening of new markets. However, we need to be resourceful to retain our markets as well as achieving the growth and export targets in Food Harvest 2020 strategy. Anything that can provide a competitive edge is to be grasped with both hands. The Sustainability and Carbon agendas are areas where Ireland can do well by building on natural advantages and agri-food strengths. We need to move fast and cleverly to stay ahead. If the sector moves in a concerted way it will achieve more at lower cost. Bord Bia Quality Assurance Scheme and Origin Green In June 2012 Bord Bia launched Origin Green, a national sustainability development programme that is designed to help Ireland become a world leader in sustainably produced food and drink. Origin Green is a voluntary business to business programme built upon a commitment from participating food and drink manufacturers to develop a sustainability plan, in conjunction with Bord Bia. Interested parties sign up to a Sustainability Charter where they set out clear targets in key areas such as raw material sourcing, emissions, energy, waste, water, biodiversity and social sustainability. At the food manufacturing level it is intended that 75% of Irish food and drink exports will be sourced from companies participating in Origin Green before the end of 2014. With some 254 Irish food and drink companies already registered to participate in the programme, this represents more than 70% of Irelands food and drink exporters. At Farm Level At farm level since May 2011, over 43,000 members of Bord Bias Beef Quality Assurance Scheme members have participated in a sustainability survey, developed by Bord Bia in conjunction with Teagasc, as part of their regular farm audit. Ireland is the first country in the world to assess the footprint performance of farms on a national scale. The audit results combined with the development of the Teagasc/Bord Bia Carbon Navigator Tool enables

farmers to set targets in areas that can improve the environmental and financial performance of their farm in addition to providing a unique selling point for Irish beef in key export markets. Similar programmes are planned across the entire range of primary agricultural production - for the dairy industry; for poultry production at both farm and processing level; for pigmeat and lamb production with a view to completing this work by the end of 2013; and projects are also being planned for grain and horticulture. Forestry All land use activities should be considered in the context of moving to a competitive lowcarbon economy. On a positive note, forestry is one of the very few which demonstrates significant capacity towards achieving national emission reductions. Forestry planting rates have a critical bearing on overall carbon neutrality through carbon sequestration. In addition the increased sustainable use of harvested wood products can also limit emissions and enhance removals of greenhouse gases from the atmosphere. By end 2012, forest cover in Ireland stood at almost 760,000 hectares, 11% of total land area. Over recent years, afforestation (new planting) has been almost entirely carried out by the private sector with the support of State grant and premium schemes. The most recent afforestation figures show that 6653 hectares were planted in 2011 while 6652 hectares were established in 2012. Farming has been the predominant sector in terms of conversion of land to forestry. In 2011 and 2012, 94% of all new planting took place on land owned by farmers. Just 6% of planting took place on non-farmer lands. In an Irish context, these statistics demonstrate that forestry is essentially an agricultural land use activity rather than a general private sector endeavour. It is therefore appropriate that the positive outputs arising from the forestry sector activities should be ring fenced towards netting off against the overall agriculture sector targets. Bioenergy The Department is contributing as part of a working group chaired by the Department of Communications, Energy and Natural Resources in developing a National Bioenergy Strategy. This work is expected to be completed during this summer. In framing the strategy, consideration will be given to maximising the opportunities from within the Agriculture and Forestry sectors to contribute to renewable energy targets for 2020 and beyond. This includes the use of agricultural wastes, energy crops, forest residues etc. Food Security the growing worldwide demand It is important to note that Article 2 of the UNFCCC states that the ultimate objective of the Convention is to stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Article 2 of the Convention states that

Such a level should be achieved within a time frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner. Food security is at the heart of the founding principles of the UNFCCC. The human population is set to rise by an additional 2 billion people (to 9 billion) by 2050. Indeed, the Staff Working Document that accompanies the European Commissions 2015 discussion paper includes the following significant observation: By 2030, the global population is set to increase by another billion to 8 billion. As an increasing share of this population joins the middle income classes, it is expected that by 2030 there will be a 50% increase in demand for food.agricultural productivity and production will need to continue to increase to feed the world's growing population. CAP Reform CAP Reform context In very broad terms, the challenge for the current round of CAP reform is to deliver, in good time, a Common Agricultural Policy that is fit for purpose; that is coherent with the Europe 2020 strategy for recovery and growth; and supports the twin goals of competitiveness and sustainability. The reformed CAP, which will set the policy framework for the period up to 2020, will be of central importance in shaping the future of European and Irish agriculture policy for the rest of this decade, and its outcome will have a crucial bearing on the development of the Irish agrifood sector in accordance with the Food Harvest 2020 strategy. Irish Presidency Priorities Concluding the CAP reform negotiations is the key priority for the Irish Presidency in the agriculture area. Negotiations have been taking place since 2011 in parallel with the negotiations by Heads of State Governments on the Multiannual Financial Framework (MFF) for the period 2014-2020. A number of key milestones have been achieved on the CAP reform package under the Irish Presidency: agreement by the European Council on the Multiannual Financial Framework (MFF) on 8 February, which provided the necessary clarity on the CAP budget, adoption by the European Parliament of its overall position on the reform proposals at its plenary session on 12 March, and adoption of a General Approach by the Council of Agriculture Ministers by a strong qualified majority on 19th March. An intensive schedule of Trilogue discussions with the European Parliament and Commission commenced on 11th April 2013 with the aim of achieving inter-institutional agreement by the end of June 2013.

Rural Development Programme 2014 - 2020 The draft proposal for support for rural development by the European Agricultural Fund for Rural Development (EAFRD) was originally published by the European Commission in October 2011. Trilogue negotiations are currently taking place between the Presidency, European Commission and European Parliament to reach agreement on the draft proposal. Seven Trilogue meetings have taken place to date under the Irish Presidency. Research and Knowledge Transfer The emissions reduction potential of the agriculture sector is limited due to the dominance of ruminant livestock. However, the Department of Agriculture Food and the Marine recognises the key roles of continued research and the need to realise greater efficiencies at farm level. In spite of these very challenging economic times, the Department has continued to support extensive research programmes at national, EU and international levels. Ireland is to the forefront in research aimed at reducing GHG emissions from agriculture. Internationally, DAFM represents Ireland on the Governing Board of the Joint Programming Initiative (JPI) on Agriculture, Food Security and Climate Change (FACCE) and the Global Research Alliance on Agricultural Greenhouse Gases. In fact, Ireland is a founder member of the Global Research Alliance whose objective is to pool the resources of likeminded countries to enable the agriculture sector to continue to reduce emissions. The work of the Alliance is focused on three Research Groups-Livestock, Crops and Rice. Teagasc represent Ireland on the Livestock and Crops Research Groups. The first multi- country research under the JPI FACCE programme will be launched towards the end of this month, many EU countries involved including Ireland (415,000 committed). USA, Canada and New Zealand also participating. Nationally, this Department continues to invest heavily in research linked to sustainability. Since 2005, the Department has made awards totalling more than 20m on climate change related projects For example, last November, some 2.7M was allocated to projects that are looking at aspects of sustainability/climate change including sustainable nitrogen use and sustainable ruminant production and life cycle analysis. The Department of Agriculture plays a central role in the development of schemes to incentivize participation by farmers in discussion groups that are designed to promote best practices in farming. The Department has developed and provides the funding for the Dairy Efficiency Programme and the Beef and Sheep Technology Action Programmes. Teagasc and other private advisors in turn provide the advisory service on the ground to farmers. The Department will continue to seek to maximise the opportunities under CAP to mobilise an effective advisory service that takes account of environmental issues. The main focus of funding is to improve our understanding of carbon stock changes in agricultural soils in order to contribute to the development of a more robust inventory and underpin future accounting for these categories.

In 2012, Ireland became a founding partner of the new United Nations FAO Partnership on Benchmarking and Monitoring the Environmental Performance of Livestock Supply Chains. Also last year, Ireland contributed (315,000) to the Global Initiative on Food Loss & Waste Reduction. Clearly, Ireland is deeply committed to research that is aimed at improving parameters of production, environment, and socio-economics. It is vital that the results of this research are implemented with the help of our stakeholders in agri-food, so that we can guarantee the supply of sustainable food into the future.

Conclusion Ireland currently produces enough food to feed a human population of well over 30 million people. We export up to 85% of our agricultural output. For decades - and therefore since much earlier than the generally applied 1990 climate accounting base year - food exports have been the dominant feature and fundamental base of the Irish agriculture sector. Irish farmers know very well that they are custodians of the Irish countryside for future generations. Food production is at the heart of the global climate effort under UNFCCC and Irish agriculture is above all about sustainable production of food. Our chief strength is our extensive grass-based food production systems and its capacity to grow agriculture and food production sustainably. We need to continually assess and review how we can continue to produce food even more effectively and sustainably. The Department will continue to support knowledge transfer to farmers so that the best new practices can be implemented - We must all continue to work together as stakeholders in the Irish agri-food sector. In national policy formulation, decisions should therefore be informed by our well-earned world reputation and our proven past performance as one of the most efficient food production countries. The Irish agri-food sector must continue to produce food more efficiently in carbon terms and national climate policy should support and enhance that effort. Working together we can ensure that Ireland is recognised as a global leader in producing high quality, high value foods that are produced sustainably, and can contribute significantly to ensuring that the security of food supply is assured.

Climate Change

Department of Agriculture, Food and the Marine.

APPENDIX A UNITED NATIONS FRAMEWORK CONVENTION on CLIMATE CHANGE

Article 2 The ultimate objective of this Convention and .... is to achieve, ....., stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system . Such a level should be achieved within a time frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner.

APPENDIX B Statistics on Agriculture in Ireland Bord Bia Jan 2013 Food and drink

The agri-food and drink sector accounts for 7.7% of Irelands economy-wide GVA, 10.8% of Irelands exports and 8% of total employment. (DAFM 2012) In 2012, Irish agri-food and drink exports increased by an estimated 2% to approximately 9.02 bn (Bord Bia 2012). The UK was the main destination for Irish agri-food and drink exports in 2012 accounting for 42% of all exports. 31% of exports went to Continental EU markets while the remaining 27% went to international markets. The latest estimates of the distribution of our agri-food and drink exports in 2012 by sector was as follows: dairy products and ingredients (30%), prepared consumer foods (15%), beef (21%), live animals (2%), beverages (14%), pigmeat (5%), poultry (2%), sheep and sheepmeat (2%), seafood (6%) and edible horticulture (3%).

Primary Agriculture

In 2012, Gross Agricultural Output (GAO) was valued at 6.61 billion. (DAFM) The milk category accounts for the largest share of GAO at 30 per cent while beef accounts for 39 per cent. Other sectors to have a share in GAO include pig (8%), sheep (4%), cereals (5%), and forage plants (17%).

Cattle and Beef

There were 6.8 million cattle in Ireland according to the June livestock survey on the 30th June 2012, this represents a 4% increase on prior year levels Irish beef production is predominately a grass based system, with 495,000 tonnes produced in 2012. In 2012, Ireland exported an estimated 454,000 tonnes of beef worth approximately 1.9 billion. In 2012, 160,000 cattle were exported live from Ireland worth approximately 217 million.

Sheep and Sheepmeat

For 2012, the latest June livestock survey indicated that the Irish sheep flock increased by almost 7% to 5.14 million head, with the breeding flock increasing by 6% to 2.65 million head. During 2012, Ireland exported an estimated 42,000 tonnes of sheepmeat which was valued at approximately 205 million. France is the main market for Irish sheepmeat exports, accounting for approximately 44 per cent of total exports in 2012. The UK is also a substantial export market, taking 29% of shipments.

Pigs and Pigmeat

In the June 2012 CSO Livestock Survey there was 1.57 million pigs in Ireland, this represents an increase of over 1% on prior year levels. In 2012, Ireland exported an estimated 178,000 tonnes worth approximately 506 million. In 2012, the UK was the main market for Irish pigmeat taking over 45% of our total exports. Continental EU markets accounted for 23% of our pigmeat exports while the remaining 32% went to international markets.

Dairy

In 2012, total milk output (incl. imports) was estimated at 5,200 million litres From this total milk output, 487 million litres was consumed as liquid milk. In addition to this 145,000 tonnes of butter were produced in 2011. While 180,000 tonnes of cheese were produced in 2011. In 2012, total dairy exports fell by an estimated 2% to 2.66 billion.

Irish Farms

There are approximately 139,900 family farms in Ireland with an average size of 32.7 hectares per holding. (CSO, Census of Agriculture 2011) The total land area of Ireland is 6.9 million hectares of which 4.6 million ha is used for agriculture. (DAFM 2011) Close to 82% (3.74 m ha) of Irelands farmland is in pasture, hay and grass silage (grassland), 10% (0.45 m ha) is rough grazing and 8% (0.37 m ha) is in crop production. (DAFM 2011)