Changes in food prices are primarily a function of market forces at international, EU and national levels. How these changes come about is a complex matter based on demand, input costs and the ability to supply product at a competitive price. For a country that exports almost 80 per cent of their agricultural output, competitiveness is the major issue for the farming and food processing sectors. It will dictate the commercial future of our farms and ultimately it will decide farm income.
The State's role is to facilitate a climate that assists competitive drive and innovation, for example, through the implementation of the Agri Vision 2015 Action Plan. At EU level a range of market support measures are operated, while the exchequer and the EU together also provide almost €2 billion per year in direct payments to support farm income.