Dáil Éireann Debate, Tuesday - 11 December 2012
411. Deputy Clare Daly asked the Minister for Agriculture, Food and the Marine if he will provide the latest data on agriculture inflation and the measures that are being put in place to stabilise food input and output prices after global crop failures during 2012. [55502/12]
View answerWeather conditions worldwide caused international alarm during the Summer of 2012 as people feared a repeat of the food shortages and political destabilization that occurred in 2010. However, since the beginning of 2012 the EU, in partnership with the G20, has supported an international market information system (AMIS) to provide transparency in relation to food prices. They have also supported the creation of a Rapid Response Forum, which has senior officials from all over the world in constant contact to react to challenging situations such as the global crop failures that occurred during 2012.
The cooperation between governments has led to fewer trade-distorting reactions like the export bans witnessed in 2010. The poor harvests this summer led to rapid price increases for key food commodities, but the increases quickly stabilised. Rice prices are lower now than a year ago, while wheat, maize and soya have increased between 14% and 23%. Prices for all of these commodities are still very high by historical standards but the price increases experienced so far in 2012 have not led to major market shocks. The latest market monitor, published by AMIS this month, shows a tightening of wheat and maize stocks, but a good supply of rice and soya beans. It also states that Markets stabilized in recent weeks as forecasts for 2012/13 balances of AMIS crops became more definite. The FAO food price index for 2012 has remained below the 2011 figure despite the poorer harvests this year.
Weather both at home and abroad and the consequent effects on price volatility and input prices meant a more difficult time for Irish farmers after a couple of relatively positive years. The latest input and output figures from the CSO (issued 7 December 2012) showed a 10% drop in operating surplus for the agriculture sector. In particular, the sector had to bear an increase in intermediate consumption of 6.9% or €335.7m, half of which was accounted for by additional expenditure on feedingstuffs. High world prices for key food commodities affect Irish farmers, whose incomes will decline by over 20% in 2012. However, the sector remains healthy despite the temporary setbacks this year and is well placed to bounce back in 2013.
