Fight costs with buying groups, better planning

Farmers have been advised to counteract rising production costs with better financial planning, and creation of buying groups.

“A number of farmers and producers, working together to buy larger quantities of feed-stuffs and seed at cheaper prices, would dramatically reduce input costs and would result in greater profits for them. Due to the economic situation, there is limited appetite from the multiples to pass on cost increases to already financially stretched consumers. It is imperative, therefore, that members from the supply chain, from farm gate to fork, work closer together to manage the risk of rising input prices on all businesses in the sector,” said Pat Burke, of Grant Thornton, the international business services company with a specialised food-sector service in Ireland.

“It is also vitally important that the Government protects this essential, indigenous growth industry. While some of these costs are beyond the control of Irish borders, collective and co-operative action by producers, supported by the Government, is the best way to protect this industry,” said Mr Burke.