Input costs are “outstripping” the increase in food prices and have left farmers financially worse off this year compared to where they were 18 months ago, according to one farm organisation.
The Irish Farmers’ Association (IFA) said that latest figures from the Central Statistic Office (CSO) highlight that in 2022, agricultural output prices rose by 26.4%, while farm input prices rose by 34.7%.
Tim Cullinan, IFA president said: “Despite higher prices for farmers, our margins were eroded with our terms of trade reducing by 6.2%.
“Even more worrying, the latest CSO data shows that input prices on farms have fallen by 0.9% in February 2023, but farm output prices fell by more at 3.9%. This level of squeeze on farmers cannot continue.”
According to the latest CSO output, input and income in agriculture preliminary estimates for 2022, the price of fertiliser was estimated to have increased by an average of 137% last year – which in turn cost Irish farmers a total of €1.2 billion.
The cost of feeding stuffs also soared by 31% last year compared to prices in 2021, which resulted in farmers paying an estimated €2.4 billion in 2022.
According to Cullinan, pigs, poultry, liquid milk producers and vegetable growers were “left carrying the can in 2022” and he said “had to fight tooth and nail to get the retailers to pass back completely justified wholesale price increases”.
However, according to the IFA president it came “too late” for many.
“Pig numbers are down 10%; eggs are in very short supply; liquid milk farmers are switching to seasonal production; and we have lost field vegetable growers,” he added.
Cullinan has now called on government to regulate the food chain and retailers.
“There was never a more urgent need for the food regulator to be in place to ensure fairness and transparency.
“This has been promised in the Programme for Government and must now be delivered by the Minister for Agriculture [Food and the Marine]. The primary function of this legislation is to protect the most vulnerable in the food production chain,” he said.
The IFA said it is seeking “an urgent meeting” with the Minister of State for Employment Affairs and Retail Business, Neale Richmond, to discuss key issues in the food chain.
Meanwhile, Minister Richmond has confirmed he will hold a meeting of the Retail Forum this week to discuss food prices.
The forum includes many of the country’s major retailers including representatives from Tesco Ireland, Musgraves, and IBEC’s Retail Ireland.