Dáil Éireann Debate, Wednesday - 24 March 2004
65 Mr. Timmins asked the Minister for Agriculture and Food his views on whether farm gate prices are satisfactory relative to consumer cost; if not satisfactory, the plans he has to assist in rectifying the situation; and if he will make a statement on the matter. [9258/04]
View answerThe prices received by producers and obtained in retail establishments are determined by the process of free negotiation within the market place. The level of supply of a certain product, the degree of competitiveness within a sector at both producer and processing level, and the level of consumer demand will all influence the final price received by the producer.
Similarly, the price paid by the consumer is dependent on a range of influences. The location of retailers, transport costs, the degree of processing and refinement of the product and other similar factors all have an impact upon the final pricing of foodstuffs. It is also important to note that there is a range of market support regimes in place, as well as a system that provides substantial direct income supports to farmers.
The recent reform of the CAP will strengthen the hand of farmers and permit them to produce more freely for the market place. That should in turn help bolster their position vis-à-vis the processing and retail trade. That is the best way of ensuring that producers get a fair price for their product.
