Mushroom growers seek currency crisis relief from EU
Irish Farmers Association (IFA) president Joe Healy said a sudden and sustained depreciation of sterling, which is as a direct result of the British vote, has had a very negative impact on the price returned to producers here in Ireland.
“Mushroom contracts are negotiated in sterling and prices are forward agreed, generally for contract periods of up to 12 months,” he said.
“Producers cannot renegotiate the price they are receiving in response to the sterling decline because the contracts are for a fixed time period.”
Mr Healy said direct support should be provided to affected producers through the Common Agricultural Policy market support measures.
He said EU regulations establishing a common organisation of the markets in agricultural products outlines the support measures that can be provided in the event of significant market disturbances.
“The sharp decline of sterling, arising from the UK vote, is a market disturbance which has occurred swiftly and unexpectedly, and has resulted in significant price falls,” said Mr Healy.
In addition, he said the IFA believes consideration should be given to the temporary easing of restrictive state aid rules, which are limiting the support that can be targeted at the most exposed sectors.
IFA Mushroom Committee chairman Gerry Reilly said the European Commission must provide exceptional support for the mushroom sector, which has suffered an immediate and negative economic impact due to an external political event.
Irish growers, employing 3,500 people, produce 70,000 tonnes of mushrooms worth €120m at farm gate.
Irish mushroom growers export 80% of their production to British multiples through their producer group Commercial Mushroom Producers.
For most Irish mushroom growers, 100% of their crop is exported to Britain, where they hold almost 60% of the multiple market.
