Fine weather helped boost farmers' spirits during 2003, with a plentiful harvest of potatoes and grain filling stores and contributing to the revival in agricultural fortunes.

The year though began with uncertainty about common agricultural policy reform.

Farmers were boosted by fine weather in 2003

Many farmers were wary about the move from subsidies on livestock and crops to a new system of income support payments.

The formula for calculating farmers' new subsidy entitlements will be decided in the new year.

Fresh emphasis will be placed on farming in harmony with the environment, with a higher priority given to animal welfare and food marketing.

There was no great marketing fanfare but, after almost seven years in the BSE wilderness, Northern Ireland beef returned to export markets in Europe.

The tonnages have been relatively small, but a more favourable euro exchange rate augurs well for trade in 2004.

But global economic pressures are as relentless as ever in the food processing sector.

Cod quota was increased by 10% for next year

Northern Ireland's only frozen chip manufacturer, Ballymoney Foods, had a full order book but the decision to halt production reflected just how competitive the marketplace has become.

In the fishing industry too, there were job losses in the processing sector.

Declining stocks and the resultant cuts in EU quotas made it another tough year for the local fleet.

Fishermen though took heart from the latest science on the state of Irish Sea stocks.

And for the first time in years, they approached the annual quota negotiations in Brussels with a degree of confidence.

A report highlighted shortcomings in flock records

A 10% increase in the cod quota for 2004 was seen as reward for four years of spring closures to give stocks a chance to recover.

Fishermen were also pleased about a three-fold increase in the haddock quota while the prawn quota was virtually unchanged.

The EU fisheries council though delivered a sting in the tail when it pushed through restrictions on the number of days boats can go to sea.

The aim is to reduce the pressure on fishing grounds.

Prawn boats will notice little difference in the first year at least, with a figure of 22 days at sea each month.

The whitefish boats though may find it harder to make ends meet.

Back on dry land, the year ended with an embarrassing Public Accounts Committee report for the Department of Agriculture on sheep subsidy fraud.

Reports of a big cat on the loose in County Antrim caused alarm

The government-spending watchdog claimed that at times officials may have turned a blind eye to subsidy claims from farmers for sheep that had died or simply didn't exist.

The committee acknowledged that the department had now tightened up procedures.

One of the most intriguing stories of the year was the attempt to corner the big cat on the loose in north Antrim.

It sprang into the headlines following a savage attack on a sheep near Bushmills but, despite numerous reported sightings, the animal managed to evade a massive search operation.

And so to a new year which will once again see farmers and supermarkets testing each others' strength in the marketplace.

It was Prime Minister Tony Blair who said that supermarkets have farmers in an arm lock.

Once again there are rumblings of discontent and demands that farmers should get a fairer slice of food market profits.