Dáil Éireann díospóireacht -
Wednesday, 11 Dec 2002

Vol. 559 No. 2

Written Answers. - Agricultural Produce.

Thomas P. Broughan

Ceist:

61 Mr. Broughan asked the Minister for Agriculture and Food his views on the difference between the price paid to farmers for their produce and the price paid by consumers for the final product; if he will set up a task force to investigate this matter; and if he will make a statement on the matter. [25773/02]

Minister for Agriculture and Food (Mr. Walsh)

The factors determining producer returns and retail prices are complex. As such a large proportion of Irish agricultural production is destined for export, improving the marketability of what we produce is the way to improve producer prices. It is with that end in mind I met producer and industry interests in the beef sector this week and that I have established a group to examine and report back to me on the future for the dairy industry. I have also met Commissioner Fischler and made the case together with the farming bodies for specific actions to deal with the immediate problems in this sector.

Markets are becoming more sophisticated. It is essential that Irish production is positioned to supply the quality end of the European markets if there is to be real benefit to producers from the improved standards of assurance and traceability achieved in recent years. It is essential that the processing industries operate efficiently and focus on reducing costs. In the Single Market, products are sold freely and Governments do not have the power to set the levels of mark-up at different stages of processing and sale. The Competition Authority has a statutory role in ensuring that markets operate freely and this includes the retail sector. In the case of commodity sectors supported by the Common Agricultural Policy, the Deputy will be aware that the return to the producer is only partly made up by the price – direct aids financed by the European Union constitute a significant proportion of producer income in the beef and sheepmeat sectors in particular.