IFA President Eddie Downey said the impact of a possible ban on Irish food exports into Russia is another example of external shocks that can lead to uncertainty and volatility on Irish farms. As an export-led sector, any threat to a market for Irish food is a concern.
He said, “Price volatility, extreme weather events and political instability are all elements that have an influence on commodity prices. With increased exposure of the agricultural sector to world markets, the impact of these factors is greater, with negative consequences for the viability of family farms”.
At European level, the IFA President said this latest development underlines the importance of the Common Agricultural Policy in providing a secure supply of food for Europe’s 500m consumers. “This has to be the focus of future reviews of the CAP. There is a role for our Government also, to implement measures through the taxation system that tackle increasing income volatility”.