Dáil Éireann Debate, Wednesday - 1 December 2010
184 Deputy Bernard J. Durkan asked the Minister for Agriculture, Fisheries and Food the extent he has monitored the degree to which prices awarded to the producer and a charge to the consumer here compare to those prevailing in other EU countries, eurozone and non-eurozone; and if he will make a statement on the matter. [45594/10]
View answerAgricultural production in Ireland and the EU must be viewed in the context of a reformed and evolving Common Agricultural Policy (CAP), with much more competitive EU and world commodity markets. As a result of the reformed CAP farmers can now take advantage of the freedom to farm exclusively for the market. They can focus on meeting the requirements of the consumer in a competitive manner.
Overall output prices fell by approximately 15% in 2009. There were declines in the output prices for cattle, milk and pigs of 10%, 31% and 9% respectively. These developments followed notable increases in output prices across the majority of sectors in 2008. Consumer prices in Ireland also fell in 2009. The overall CPI fell by 4.5% for the year. The overall price of food as measured by the food price index fell by 3.5%.
The data currently available in this area is quite limited. However, EUROSTAT is currently developing systems to monitor prices at various stages in the food chain through harnessing available data on price developments at different steps of the supply chain and comparing price developments for the relevant agricultural commodities, for the relevant food industries as well as for the chosen consumer goods. The European Commission has included an initiative on developing an improved European Food Prices Monitoring Tool in its Communication on a better functioning food supply chain (COM(2009)591) and a mandate for an Experts Platform on this subject was agreed in November by the High Level Forum on better functioning of the food supply chain. Under the mandate the Platform will organise consultations with other stakeholders, develop further the monitoring tool in cooperation with EUROSTAT and discuss with National Statistical Institutes through working groups the possibilities of receiving and publishing more data than are presently available.
Prices paid by consumers in the EU primarily remain a function of prevailing market and competitive forces in those countries. EUROSTAT data indicates that there was a 0.9% increase in food prices to consumers across the EU-27 in 2009 following on from the 6.7% increase experienced in 2008. However there was a wide divergence in food price developments within the EU in 2009 with food prices increasing by over 5% in 2 countries (Malta and UK) whilst prices fell by over 3% in 4 countries including Ireland.
