Farmers at the bottom of the food price spiral

AS a beef farmer, I was surprised by the recent report showing Irish food prices among the highest in the EU, especially when I look at what we farmers are get for cattle.

Even though we export 85% to 90% of our beef production, with more than half going to Britain, other EU states manage to sell our Irish produce for less than it makes here, even allowing for transport costs.

In Ireland, farm gate prices are way below those received by British farmers, yet British consumers pay just 2% over the average EU retail price for meat. There seems to be huge discrepancies between farm gate price, retail price and the concentration of supermarkets.

Why are Irish farmers only receiving €3.07/kg for beef when Italian farmers, on the same week, get €3.50/kg (R3 steers, June 20, 2010, Bord Bia)?

Even though the Irish farmer is only receiving 87% of the Italian price for beef, the Irish consumer is actually paying 10% more than the Italian consumer. The Italians have a grocery pricing structure 8% higher than the EU average, but supermarkets only have a 50% market share of grocery sales, which is possibly why Italian drystock farmers are better paid for their produce and consumers are being charged less.

This is a clear indication of where there is less supermarket dominance in the retail sector, farmer and consumer get a better deal. Ireland had the second highest food and drink prices, consumers paying an average of 29% above the EU norm for groceries and 21% above for meat. Is it possible the dominance of the retail sector is playing a part in such obscure discrepancies?

It’s no wonder Irish farmers are finding it tough to make a living. Where is the balance of power? Clearly, it’s in the hands of the supermarkets.

Edmond Phelan

Munster vice-president

Irish Cattle and Sheep

Farmers Association

Caher

Fenor

Co Waterford