Independent TD for Clare, Deputy Michael McNamara has called for urgent government intervention on the cost of fertiliser to avoid an increase in food prices.
Deputy McNamara recently expressed concerns in the Dáil about the impact that the rise in cost of fertiliser has on food production and pricing in Ireland.
He added that “Irish farmers face a dilemma” and further stated:
“To ward off a horrible scenario where Irish consumers cannot afford the cost of food in Ireland like other European consumers, we need to intervene now.”
Amid effects on food production, Deputy McNamara suggested the potential bulk purchase and the subvention of fertilisers or the introduction of price caps.
“Do they [Irish farmers] borrow money to pay the cost of fertiliser, which has more than doubled, and hope to pass that on to consumers at the end of the year?” Deputy McNamara asked.
“Or do they produce less food, which will also result in a rise in consumer food prices at the end of the year?” he continued.
The independent TD for Clare said he has “no doubt” about Ireland producing enough food to feed its population; however, he is “less confident” about Europe, particularly because of less supply from Ukraine, which, he stated, is the “breadbasket of Europe”.
In response to concerns raised by Deputy McNamara, the Minister for Agriculture, Food and the Marine, Charlie McConalogue said his department is monitoring the situation “very closely”.
Meanwhile, Minister McConalogue attended a meeting of EU agriculture ministers yesterday (Wednesday, March 2) in relation to impacts the Russian invasion of Ukraine will have on the European agri-food sector.
Agriculture minister council
At yesterday’s informal meeting, Minister McConalogue addressed concerns about the effects the Russian invasion of Ukraine will have on input prices such as fertiliser and feed. He said that Ireland strongly supports calls for close and extensive monitoring of the situation. The minister added:
“Our immediate actions should be focused on trying to maintain supply chains and minimise any disturbances to these.”
EU Commissioner for Agriculture, Janusz Wojciechowski announced special market measures to support sectors most hit by rising input costs.
Potential measures could include private storage and a crisis reserve, he said, and the introduction of expert groups and measures to secure production capacity in Europe.
Intervention measures are due to be discussed by the Special Committee on Agriculture on Monday, March 21, while, according to the commissioner, an analysis and measures linked to energy prices and particularly fertiliser costs will be communicated next week.