Hogan vows to seek fairness in supply chain costs
Addressing the IFA’s 60th anniversary celebrations in Dublin, Mr Hogan questioned why Irish fertiliser prices are expected to rise 7% in 2015, despite crude oil prices having fallen by 45% since last June.
“I am not happy about this,” he said. “I will raise this with my colleague, the commissioner for competition, Margrethe Vestager, who will not hesitate to investigate any instances of potential activity which breaches competition rules. It is important that input costs reduce in line with the general fall in energy prices.”
Mr Hogan told the 1,300 IFA officers in the Convention Centre Dublin that the EU would need to review the high margins being extracted by input suppliers and retailers in the context of the current low global energy prices.
“The present Supply Chain Initiative at EU level unfortunately still does not cover all relevant actors,” he added.
“I will not hesitate to call for changes so that farmers are not put out of business arising from the squeeze on their margin of profitability.
“All players in the food chain should realise that it is imperative that producers get a decent return for their raw material. Without producers none of the downstream businesses would even exist.”
Mr Hogan said the IFA has been one of the most successful movements, not just at Irish level, but in the whole of Europe, playing a key role in bringing the EU from subsistence farming to food self-sufficiency since its foundation as the then NFA in 1955.
IFA president Eddie Downey said farm families now again find themselves under immense pressure, with an inadequate return for their hard work and investment.
He said: “In 2015, Irish agriculture is still the backbone of the rural economy, supporting 300,000 jobs, and with real potential to grow the volume and value of our high quality food products for consumers across the world.
“However, extreme price volatility, escalating input costs that bear no relation to product prices, excessive bureaucracy, the threat of damaging trade deals and the inequity in returns from the food supply chain between producers, processors and retailers must all be addressed.”
He said the EU family farm model of agriculture must be protected, as the most sustainable way of delivering food security for Europe’s 500m citizens and our rapidly growing global population. “Irish and European farm families are entitled to — and must get — a fair reward and a decent income for the vital job we do for society.
“Supporting farming and innovative farm enterprises, through the CAP and Rural Development Programme, and investment in key rural infrastructure such as broadband, is the most effective way of ensuring a vibrant rural economy.”
The IFA celebrations featured tributes to the 14 presidents who have led the organisation over the past 60 years. It was founded in 1955 as the National Farmers’ Association,
