Dáil Éireann Debate, Wednesday - 1 December 2010
23 Deputy Pat Breen asked the Minister for Agriculture, Fisheries and Food his views on the price uncertainty currently being faced by the pig and poultry sectors; and if he will make a statement on the matter. [45237/10]
View answerThe price paid for agricultural commodities, including meat products, is a matter for the industry, and is a function of the supply and demand dynamics in the market place. In common with other meats, returns to pig producers have fallen as a result of the economic recession.
During the early part of 2010 prices continued to fall following the significant decline witnessed in 2009. Prices recovered in the second quarter of this year to the extent that year on year prices exceeded 2009 levels in early July. The seasonal decline following the end of the barbecue season was again experienced but not to the same extent as previous years. As a result, year on year prices have remained above 2009 levels and are still over 8% ahead with a degree of stability occurring in recent weeks. Currently the Irish producer price, at €130.01/100kgs, stands at over 95% of the EU average. In general, Irish price movements over recent years have mirrored those of the EU as a whole.
In tandem with poor returns, the biggest issue for producers at the moment remains feed costs. The sharp increase in cereal prices since, given that cereals account for 75% of feed, is reducing margins to below the long-term average. In response, the European commission has recently opened a tender for wheat and barley to be sold from intervention in an attempt to curb feed price increases. In addition, on the EU front, my Department has been working with like minded States to seek the introduction of export refunds. The Commission has shown a marked reluctance to take this step, but has indicated that it will keep the situation under review.
Competition from fresh poultry imports from Northern Ireland continues to curtail returns to poultry producers. Feed costs have also impacted on producer margins and have pushed margins below long-term averages. However, poultry is normally reared under contract to processors, for a pre-agreed price, and therefore poultry producers are not subject to the same price fluctuations as other farmers.
