Vol. 416 No. 7
8 Mr. Cosgrave asked the Minister for Agriculture and Food if his attention has been drawn to the reports of a major difference in potato prices north and south of the Border; and if he will make a statement on the matter.
40 Mr. McCartan asked the Minister for Agriculture and Food if his attention has been drawn to the findings of the recent survey undertaken by consumer Choice magazine which showed that consumers in the Republic of Ireland were paying substantially more for potatoes than their counterparts in Northern Ireland; if his Department have carried out any investigation into the disparity; and if he will make a statement on the matter.
I propose to take Questions Nos. 8 and 40 together.
Potato prices vary widely not only between north and south but throughout the island as a whole. There are no obstacles to trade in potatoes between north and south. Sufficient supplies are available and competition is generated through the wholesale and retail network of potato sales. This ensures that consumers have a range of choice and they should therefore, shop around for the best value in terms of quality and price. I am, of course, concerned to ensure that consumers can readily identify the value they are receiving in respect of different sized packages and different varieties. I have asked that particular attention be paid to this in an overall review of the grading regulations.
I should like to take this opportunity of congratulating the Minister of State on his appointment. It can be argued that there is a price variation and that the consumers in the Republic are paying a higher price than their counterparts in Northern Ireland. However, the problem does not lie with the producer. Will the Minister admit that potato producers here face great difficulties at present in making a living from their products?
It is very difficult to define a price variation and sometimes one is not comparing like with like. Quality has a very great bearing in terms of the price paid for a product and it is a well established fact that some of the better quality potatoes have a low yield potential and, therefore, carry a higher production cost. Because it is a quality product, it is inevitable that their price will be at a premium, a factor which must be taken into consideration. I agree that the potato sector generally has been going through a difficult time but, in fairness, it must also be said that with the assistance of An Bord Glas they have, to a great extent, rationalised and improved the overall efficiency of the industry. If, for example, potato producers in 1991-92 are in receipt of a reasonable price for their produce it should be remembered that there were many years when they were not so furtunate. I agree that it is a vulnerable industry which has been reflected in prices. However, quality is what matters and the consumer tends to pay a little more for a quality product.
The Minister has dodged the question as shoppers in Belfast are just as likely to shop for quality products as their counterparts in Dublin. The price comparisons in Choice magazine between Dublin and Belfast show that the shopper in Dublin is paying 50 per cent more than the shopper in Belfast for the same quality and weight in potatoes. Surely the Minister has a responsibility to examine why that is the case? It is not sufficient to say that quality may have a bearing or, as a previous Minister said, that it had something to do with the change-over from the main crop to the new season's crop and that imports may have had a bearing on prices. After all, the same imports come into Belfast and Dublin at the same time of year. There is a need for a through investigation——
Brevity, please.
——as to why shoppers in the Dublin market, the main market for——
The question is quite long.
Why is the Dublin shopper paying more?
I refer the Deputy to my comment in relation to quality. There is certainly a variation in this regard. For example Records and Kerrs Pinks are regarded as potatoes of very high quality——
What about Golden Wonders?
Indeed, Golden Wonders are perhaps superior to the two I mentioned. By comparison the product known as "Peatlands", which has a very high output in terms of yield, invariably fetches a lower price on the market. We cannot ignore quality. I want to make a final point; we do not exercise any form of price control, we leave it to market forces to determine the value of products on the market. At the end of the day that must be the answer from the point of view of the consumer. There is choice, availability of products and the opportunity for the potato consumer to shop around for the best value.
Deputy Farrelly and Deputy Leonard are offering. I will hear them if they will be very brief.
May I ask the Minister if he has taken time to visit the Dublin market? If he did, I am sure it was an education for him. When the Minister visits the market he should try to convince wholesalers not to import so much of their produce, which keeps down the price of home produced products. I ask Deputy Proinsias De Rossa and other Deputies in the House who might have some influence in this area to think more of the people at home who grow produce.
Is the Minister aware that the difference between produce from the North and the South relates to the variety? I am referring to varieties such as Cara, Kerrs Pinks, Pentland Dell and Pentland Crown, which are cheaper varieties. There is very little variation in the top quality potatoes. In view of the fairly substantial grants for potato storage does the Minister agree that we should be in a better position in future to meet any further competition from Northern Ireland and other countries?
In relation to Deputy Farrelly's question, I have not yet had the opportunity to visit the Dublin market but I will certainly do so——
It will be a third level education for the Minister.
——in order to broaden my horizons in terms of the entire horticultural industry. As Deputy Leonard correctly stated, the product and the quality of the product are the main factors behind the price variation. The Deputy also referred to modernisation of the potato industry. Investment, assisted by EC grant schemes, in the provision of modern storage facilities is a major factor in the overall development of that industry. It is my desire that we will gradually develop the industry to the extent where hopefully we will have substantial exports which will be of tremendous benefit to our farmers, particularly at this time when so many projects are being put under pressure by European regulations.
Deputy De Rossa rose.
A brief question, Deputy De Rossa. I want to make progress on other questions also.
I want to ask a brief question. I am sure the Minister is aware that Pinks, as he called them, are not available in Belfast unless they are imported from the Republic. Kerrs Pinks are not a main crop in Northern Ireland. There are potatoes which look like Kerrs Pinks in Northern Ireland but they are not Kerrs Pinks.
The Deputy must not visit the North too often.
From my ancient relationship with that trade — which was about ten years ago — I understand that Kerrs Pinks are not a very profitable crop in any event in terms of yield and so forth.
It is only greens and oranges they have up there.
May I ask the Minister if he will undertake to carry out an investigation into the disparity, which clearly exists, between the prices not only in Dublin and Belfast but between Dublin and rest of the country? There will clearly be a problem in relation to marketing and distribution if those wide disparities exist. It is only fair to the consumers that those disparities should be eliminated.
The Deputy referred to a variety known as Pinks or, as he correctly identified them, Kerrs Pinks. It is true to say that this variety are not widely produced in Northern Ireland but they are produced in the Republic. It is also true to say that the level of profitability for the producer is not as great as for some of the other varieties. Therefore, as I said in my original reply, we are dealing with a quality product which bears a premium in terms of price.
With regard to the Deputy's request that I carry out an investigation into the price difference, as I said in my initial reply we do not have price control in this country. It is left to market forces and competition to decide the price level for most of these products.
With all due respect, the Minister does not have an answer to the question.
Question No. 9, please.
If they come to County Donegal we will supply them with all the varieties of potatoes they want at the right prices.
