The disparity between the harvest price to growers and the feed price has been questioned by the farm business chair of the Irish Farmers’ Association (IFA), who said it suggests “profiteering”.
Rose Mary McDonagh said “somebody is profiting” from the gap between the grain price and the animal feed price charged by feed suppliers to drystock, dairy, pig and poultry farmers.
While grain farmers are facing a “massive” drop in income, she said, Central Statistics Office (CSO) figures show that the price of animal compound feed rose by over 1% in the year to June 2023.
Stating that many grain farmers are facing “significant losses” for this year’s harvest, McDonagh said:
“While weather and higher inputs have played a part, they have also taken a cut of about a third in the price paid by merchants for their grain.”
Latest data by the CSO shows that in the 12-month period to June 2023, compound feed prices increased by 1.3%. In the same period, for example, fertiliser prices declined by 43.4%, she said.
“However, it should be noted [that] the drop in fertiliser price came after cereal farmers had purchased almost all of their fertiliser for the 2023 cereal crop at vastly inflated prices,” McDonagh added.
“In a year where both tillage and livestock farmers are suffering from ongoing inflated input prices, combined with significantly reduced output prices, we cannot have a situation where some within the feed supply chain are profiteering.
“Those buying grain from tillage farmers and those supplying feedstuffs to livestock farmers need to act fairly.
“Tillage farmers must get a fair price for their grain while livestock farmers must be charged a fair price for their feedstuff, McDonagh, who said “serious questions have to be asked”, added.