Report Shows Big Return on Investment in Teagasc Research

14 February, 2003

The return on investment in agricultural research in Ireland is 10 times the level advocated by the Department of Finance for public sector investment projects, according to analysis published today.

The analysis, which was carried out by Professor Gerry Boyle of NUI Maynooth, shows that the average return on investment in seven areas of agricultural research conducted by Teagasc over the past three decades was 47%. This compares with a recommended minimum rate of 5% advocated by the Department of Finance for public sector investment projects.

According to Professor Boyle, it also compares very favourably with rates of return on similar research projects internationally.

The report, which is part of an overall approach by Teagasc to objectively assess the impact of its research, advisory and training programmes, was launched by the Minister for Agriculture and Food, Joe Walsh in NUI Maynooth.

Professor Boyle's analysis shows that the rate of return of the seven selected research projects ranged from 9% to 95%. The project which gave the highest estimated rate of return was research on malting barley by Teagasc at Oak Park Carlow. The adoption of the new technology by farmers has led to substantial increases in yield and quality, resulting in a return of 95% on research investment.

Professor Boyle's analysis of research on phosphorus use by Teagasc at Johnstown Castle, Wexford shows that savings on fertiliser costs and environmental benefits have led to a return on investment of almost 70%. This research will also lead to important, but as yet unquantifiable, benefits in terms of improved water quality.

Extensive research on quality silage making conducted by Teagasc at Grange Research Centre, Co. Meath during the past three decades has given a return of almost 50%, according to Professor Boyle. He also found a similarly high rate of return on mushroom research. A new system of mushroom production developed by Teagasc scientists at Kinsealy Research Centre, Co. Dublin has resulted in the development of a major industry in Ireland. Mushroom output has grown from less then €10m in 1980 to €130m in 2001 and a substantial export market has been developed in the UK. Employment in mushroom production is now 4,500.

Research by Teagasc on milking technology at Moorepark, Fermoy has resulted in substantial gains for dairy farmers in milk yield, milk quality and animal health. The investment in this work, according to Professor Boyle's analysis, has given a return of 45%. Pig breeding research, also undertaken at Moorepark, was estimated to have yielded a return in excess of 70%.

Teagasc potato breeders at Oak Park Carlow have led the field internationally during the past two decades. Almost 20 Teagasc-bred varieties are now in commercial production world-wide. The two most successful varieties are Rooster and Cara which are now widely used in Ireland, the UK and in the Mediterranean and North African countries.

"The return on investment in potato breeding to the Irish economy is around 10%. However, this greatly under-rates the value of this work as the vast bulk of the benefit has accrued to overseas producers," said Professor Boyle.

Welcoming the report, the Director of Teagasc, Jim Flanagan, said it clearly demonstrates the excellent value for money from investment in research conducted by Teagasc.

"Continued investment by the state in agriculture and food research was never more important in the context of the accelerated agenda for agricultural reform. Cutting edge agricultural research is the key to competitiveness", said Mr Flanagan.

The 150 page report 'The Costs and Benefits of Agricultural Research in Ireland' written by Professor Gerry Boyle in collaboration with economic consultant, Brendan Kearney and Teagasc researchers is available from the publications office, Teagasc, 19 Sandymount Avenue, Dublin 14, ph: (01) 6376021 or email: publications@hq.teagasc.ie.