Measuring the Competitiveness of Irish Agriculture (1996-2000)

Abstract

This research project was initiated in direct response to a specific recommendation from the report of the 2010 Committee (DAFRD, 2000) which found that there was insufficient work and data in the area of competitiveness. Ensuing from this, three separate pieces of research were undertaken. Alan Matthews and Carol Newman, Trinity College, carried out an assessment of the productivity growth in Irish agriculture from 1984 to 2000. Proferssor Gerry Boyle, NUI Maynooth, updated previous work carried out in the early 1990’s on cost based and partial productivity based indicators of competitiveness. In addition, Rural Economy Research Centre, Teagasc, responded to the recommendation from the committee for ‘the collection and publication on a regular basis of key competitiveness indicators, with appropriate international comparisons” (DAFRD, 2000, p.40). Appropriate indicators of competitiveness were identified and calculated for the years 1996 to 2000. These indicators provide a baseline upon which competitiveness of Irish agriculture can be examined on a regular basis.Phase I of this project investigated alternative indicators for measuring the competitiveness of the agricultural and food sectors, which meet the requirements of the theory of competitiveness and for which relevant data could be collected on an annual basis. Profitability was selected as a measure of competitive performance and costs of production, value of output and partial productivity indicators were examined as possible sources (potential) of competitive performance. In addition to performance and potential, the competitive process is often referred to in studies of competitiveness, the mechanism whereby competitive potential is translated into competitive performance. However, the majority of these measures are qualitative in nature and consequently were not considered for the purposes of this research whereby appropriate quantitative indicators of competitiveness are to be identified. The Farm Accountancy Data Network (FADN) was the primary source of data used in this analysis.