ICMSA protest at widening gap in food price chain

THE ICMSA has launched a nationwide poster campaign to highlight the widening gap in the food price chain — the difference between what farmers receive and what consumers pay and the Consumers Association of Ireland has surpported the campaign.

Pat O’Rourke, ICMSA president, said that, based on official CSO statistics for every euro spent on milk, farmers receive only 36 cent. Farmers receive 38 cent out of every euro spent on beef and, in the case of bread, they receive only 8 cent per euro: “According to the CSO national average figure for July 2002 the current price paid to farmers for liquid milk is 30 cent per litre, whereas the price paid per litre of milk at retail level is 85 cent. The widening food price gap is certainly not due to the amount paid to farmers. The percentage of consumer expenditure on basic food items which goes to farmers has declined sharply over the years.”

Consumers Association of Ireland chairman Michael Kilcoyne said he fully favoured a combined approach by consumers and farmers to get Government action to stop profiteering by the supermarket middlemen. Both Mr O’Rourke and Mr Kilcoyne pointed out that the actions of retail multiples are ensuring that both farmers and consumers are suffering. This power is leading to an abuse of a dominant position which is outlawed under competition legislation. The ICMSA president said a compulsory system of beef price transparency that protects both farmer and consumer interests operates in the US under federal legislation. The ICMSA has proposed a similar system to the Government and to the EU Commission. Mr O’Rourke and Mr Kilcoyne jointly called on Tanaiste Mary Harney to act on her own statement that there was need to examine the growing price gap between the farm gate and consumer plate.