Consumers ‘can handle’ higher prices for farm produce

WE now live in a society where sirloin steak is €10.68 per kilogram and cocaine is €70 a gram (or €70,000 a kilogram), a farm leader pointed out last night.

Irish Cattle and Sheep Farmers’ Association (ICSA) president Malcolm Thompson was speaking in the context of farmers being dependent on low prices.

“Don’t tell me that the consumer couldn’t handle a little bit more at the counter,” he said.

Mr Thompson said people also live in a society where there has been a failure to communicate the positive health impact of lean Irish beef.

“Worst of all, there are some vegetarians who have ethical issues or health phobias about eating beef but see nothing wrong with doing a line of coke,” he said.

Mr Thompson, addressing the association’s AGM in Mullingar, Co Westmeath, said farmers should be cutting back on cattle and sheep numbers if processors can’t deliver them a better price.

“Talk of food inflation is everywhere. Those who are most vociferous on this, and I include trade unions and consumer representatives, should be a little cautious before they shout too loud.

“The most recent figure for Ireland shows that household expenditure on food at just 8.4% of total expenditure, less than the figure for beverages.

“People complain that milk is dear at 90 cent a litre and happily ignore bottled water costing 150 c/l,” he said.

Mr Thompson said although there have been some significant increases in the price of the loaf of bread in recent months it’s hardly going to put out the lights in a country where the average earnings in industry are now €39,000.

“The consumer price index shows an increase of 15.7% for all goods in 2006 compared with 2001. The figure for food is a rise of just 3.5%,” he said.

Mr Thompson said cattle and sheep enterprises are not paying their way. The National Farm Survey shows consistently they are actually losing money from the marketplace.

“There is no solution to the problems of Irish cattle and sheep farming other than higher product prices.

“There is no scope to cut costs any more. Farm size and scale cannot be dramatically transformed in a country where land costs €20,000 an acre.

“Higher product prices can best be achieved by having full mobility between the different farm sectors.

“It requires an acceptance by supermarkets and other retailers that the days of screwing farmers must now end,” he said.