Irish Cattle and Sheep Farmers' Association President Gabriel Gilmartin has claimed that the strength of the euro could hinder export growth in the next few years.
At the AGM of his association in Dublin, Gabriel Gilmartin said that the determination of the ECB to keep the euro strong serves only the interests of Germany at present.
Mr Gilmartin contrasted the policies of the ECB and the Bank of England on quantitative easing which has resulted in the value of the euro going from 69p to 85p in five years.
He pointed out that, for beef, the UK is still our most important export market accounting for almost half of all beef exports.
He said that Ireland is also competing with British exports such as lamb on the French market.
His concern is that the recent EU summit has again completely ignored the way in which the ECB policy is keeping the euro high relative to sterling.
The ICSA leader said the exchange rate was a real issue for Irish exports. This is not a suggestion that we should leave the euro, he insisted, rather it is a call for a review of how the ECB strategy is supportive of a minority of member states at the expense of the majority in the EU.
Mr. Gilmartin suggested that the ambitious expansion plans for the agri-food sector set out in the Government's Food Harvest report and may be overly optimistic.
He said that while there is a renewed sense of confidence, a balanced view needs to be taken. Beef production in Ireland cannot expand rapidly in the short term, he said, without a sustainable increase in demand so that a viable price is achieved.
Mr Gilmartin said a beef price of €4/kg can be maintained, and there must be real progress in developing Brand Ireland and building demand for Irish beef on a wide range of premium EU and other markets."
