IFA targets €250m reduction in input and service costs to farmers
By Ray Ryan Agribusiness Correspondent
Wednesday, March 17, 2010
A €250 million reduction in input and service costs to farmers is being targeted by the Irish Farmers Association (IFA).
IFA Inputs Project team leader Chris Hayes said Irish production costs are seriously out of line with competitors and are eroding farm incomes.
"Farmers over the last number of years have spent in excess of €4 billion per annum on inputs and services.
"The biggest expenditure items are fertiliser, feed and fuel-energy. Excluding farm-to-farm sales of fodder, feed and contractor charges the annual spend is close to €3bn," he said.
Mr Hayes said controlling and reducing costs is critical to the success and profitability of farming.
The IFA said it had identified numerous areas where significant cost savings can be achieved and will be targeting cumulative savings of a €250 million per annum.
Supply chain length and inefficiencies on the compound feed side alone cost farmers about €36m/ annum for every €10 extra spent on a tonne of feed.
On the fertiliser front, IFA estimates that savings totalling €30m can be made, with €14m to €16m achievable by direct selling from factory to farm.
Increasing direct deliveries, reducing the number of depots, and co-ordinating transport would yield further cost savings of €14m to €16m.
Mr Hayes said farmers are paying over the odds for many of their inputs and services due to overpriced professional fees, regulatory costs, market segmentation for plant protection products and veterinary medicines coupled with diminished individual purchasing power.
a d v e r t i s e m e n t
This appeared in the printed version of the Irish Examiner Wednesday, March 17, 2010
