The position with regard to produced prices for the main commodities in the agriculture and food sectors compared to those obtaining generally in other EU member states is as follows:
Cattle and sheep prices in Ireland are traditionally lower than those in most member states mainly because of the heavy dependence of these sectors on export markets and the additional transport costs arising from our distance from these markets. In addition, there is a natural preference in many member states for domestic product, with the result that imported foods are often discounted. The importance of this factor has been significantly increased in recent years in the beef and sheepmeat sectors because of the March 1996 BSE scare. The various promotion campaigns of Bord Bia are designed to promote Irish beef and lamb on the European market as a quality product which has been produced in a natural environment with a view to securing higher returns.
In the pigmeat, poultry and egg sectors, prices are determined by market forces operating within the member state concerned. While the operation of this free market may in some cases mean that prices paid to farmers are higher in some other member states, overall this is of benefit to the Irish industries in the long term as it allows the products to compete with the higher priced commodities from elsewhere in the Community.
Milk prices paid to Irish milk producers compare reasonably well to those prices paid in most member states.