asked the Minister for Agriculture and Fisheries if he is aware that the index of the prices paid for agricultural goods to farmers was only 50.6 per cent higher than in 1953, whereas food prices paid by consumers were 80 per cent higher and the consumer price index in general was 95.7 per cent higher; and that these figures indicate that a smaller share of the sale prices of the end products of their work is now going to farmers and that the profit margin of farmers has been eroded over the years; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Farmers' Profit Margins.
39.
The farmers' share of the price paid by consumers for farm products has been declining gradually for many years, both here and in other economically advanced countries. This is due to the expanding demand for convenience foods and the increasing cost of the additional processing and packaging which that demand entails.
This trend does not, however, imply any erosion over the years of the farmers' profit margin which is governed by the difference between the prices and volume of farm output and the prices and volume of farm inputs. In fact, largely due to Government action, the average income per farm family member has increased much more rapidly during the period in question than either the increase in food prices or the consumer price index.
Would the Minister agree that the overall amount of income going to the agricultural community has declined relative to that going to other sections of the community?
I would not agree that relativities have been adversely affected. I think the Deputy is comparing things that are not truly comparable when one considers that the agricultural price index and the consumer price index are not strictly comparable. About half the sales, to which the agricultural index applies, are sold on the home market. I should like to point out that in 1953-54— which is the first year of the period to which the Deputy has referred—price supports amounted to £0.12 million. In 1970-71 they had increased to £36.7 million. It is largely because of direct Government action that the farmers' incomes have increased on average from £329 in 1953 to £794 in 1970.
Is the Minister satisfied that the increased difference between the price paid by the consumer and the price paid to the farmer is due entirely to the development of convenience foods?
I would not go that far. I would not confess to be completely happy about the farmer's share in the overall price received for his products but I do not accept the Deputy's contention that his position has relatively worsened.