Subsidies help farmers turn €440m profit
Extra subsidies helped Irish farmers make a €440m operating profit in 2005, despite producing 4% less goods, it emerged today.
The Central Statistics Office (CSO) said the agriculture sector earned €2.7bn from livestock, milk and crops this year.
However, it spent €2.1bn on outgoings like feed, fertilisers, energy bills and contractors.
The €440m operating surplus (19.8%) doesn’t include deductions for interest payments or land rental.
The CSO said the structure of agricultural subsidies changed significantly this year due to reforms in agricultural policy and the introduction of the Single Payment Scheme for farmers to replace headage payments.
As a result, subsidies on production nearly trebled from €594.3m in 2004 to €1.7bn this year due to the changes in the system.
In total, the value of cattle output decreased by €10m or 0.8% this year. The CSO said the price increase for cattle was offset by fewer slaughterings.
Sheep output decreased by 10% or €20m as a result of a decline in sheep prices, and the value of milk output decreased by 5.7% or €81m due to a drop in both price and volume.
Cereal output was also down, showing a drop in value of some €47m or 26% due to a drop in production.
The CSO said energy costs were up this year by €22m or 9.1%, mainly due to price increases.
The net value of subsidies on products fell from €878.5m in 2004 to €405.8m in 2005 – but this figure relates to output from previous years.
The CSO said it is likely the gross value of subsidies on products will be “negligible” next year.
Updated output figures for the sector will be published in February and June 2006, the CSO said.
Government ministers from the 149 member countries of the World Trade Organisation today began talks in Hong Kong aimed at agreeing the removal of trade barriers and boosting the world economy.
The European Union has refused to make further concessions unless developing countries promise to open their markets to industrial goods.
