Irish Farmers Association (IFA) President Tim Cullinan has called on the Government to move quickly to restore a ban on below-cost selling of food after the IFA an economist Jim Power published a report on the practice.
“The price compression at retail level has forced growers out of business,” he said. “The most recent National Field Vegetable Census, which is now out of date, showed that the number of field vegetable growers fell from 377 in 1999 to 165 in 2014, a reduction of nearly 60 per cent. It is clear from anecdotal evidence that this trend has continued in recent years.”
He added that the inputs crisis at farm level has become far more severe as a result of the war in Ukraine. He cited the example of tomato growers Matt and John Foley, “ Like all growers, they can only recover their costs from the price they are paid,” he said.
Jim Power said since 2011, the average retail price of food fell by 9 per cent in real terms. Over the same period, overall consumer prices increased by 13 per cent. Over the past 12 months, food prices increased by just 1.6 per cent, while aggregate agricultural input prices increased by 9.2 per cent. In particular he cited the growing market share of the two discounters – Aldi and Lidl – as fundamentally impacting on the price that primary producers receive for their produce. The IFA says many farmers have been forced out of business and many more will follow unless strong intervention in the market occurs.
Last week the Irish Cabinet approved the creation of the General Scheme of a bill to establish a new Office for Fairness and Transparency in the Agri Food Supply Chain, a move that was welcomed by the IFA.
“We have waited a long time for this. We look forward to seeing the draft legislation and to having genuine input into what powers the office will have,” said Tim Cullinan. “This Office will be crucial in ensuring a fair share of the consumer euro goes to farmers, and in regulating unfair trading practices. If it does not ensure a viable price for farmers for their work and investment, then we will see more farmers in horticulture, potatoes and the pig and poultry sectors go out of business.”
Photo source: IFA