Dairy wholesale prices rise 20% annually; fruit and veg costs decline

Wholesale prices on dairy products increased by 20.5% year-on-year in May, helping to drive up overall factory gate costs, according to the latest figures from the Central Statistics Office (CSO).

The corresponding data for meat and meat products showed wholesale prices were up 4.2% over the year, whereas fruit and vegetable prices were down 3.5% over the same period. The annual percentage change in total factory gate prices showed an increase of 1.1%.

Still, the month-on-month changes were muted, with wholesale prices on dairy products growing just 1.3% in May. Meat and meat products were up 2.1%, while fruit and vegetable wholesale prices were unchanged. Indeed, monthly factory gate prices were down 0.8% last month, driven by decreases in computer, electronic and optical products (-2%).

The results followed criticisms by the Irish Creamery Milk Suppliers’ Association (ICMSA) of Irish processors, which it claimed have consistently paid prices below those on offer across other EU countries, as well as the US and New Zealand, in recent months.

Dairy Committee Chairman Gerald Quain said that although international markets were strong enough to deliver a producer price of 33c/L, farmers actually received a base of 32c/L. As such, calculations from the association showed that individual farmers “lost out to the tune of €450” in May, based on an average farm milk pool of 300,000L.

The CSO’s wholesale price index showed total factory gate prices for food products were up 6.8% year-on-year but only 0.1% in May, compared to 0.9% in April and 0.6% in March. There was annual growth of almost 2% in fish and fish products, while grain milling, starches and animal feeds wholesale prices were down 2%.

Prices used in the compilation of the indices exclude VAT and delivery charges; account for all discounts or surcharges; and are inclusive of excise duty.