Dáil Éireann Debate, Tuesday - 11 May 2004
136 Mr. Ferris asked the Minister for Agriculture and Food if he will make a statement on a recent survey conducted by a newspaper (details supplied) that showed that farmers receive on average less than 50% of the retail value of a beef animal. [13537/04]
Amharc ar fhreagraMy function with cattle prices is to set policy parameters and support framework and to secure, by every political and diplomatic initiative, access to export markets for our beef. As regards retail prices, an independent group was appointed by the Tánaiste and Minister for Enterprise, Trade and Employment to establish why there was such a large differential between the producer price and the then prevailing consumer price.
This group reported in September 2000 that allegations about price gaps between the producer and consumer are based on simple comparisons between the level and movement of farmgate prices and retail prices. Such comparisons were inadequate because weight losses involved in converting the live animal into saleable beef were not taken into account. The comparison also ignored cost developments in the post-farmgate sectors of the food chain which account for half the value of the total chain. When these issues were properly considered, the changes in retail prices were fully explained by the combined movement in farmgate prices and post-farmgate costs.
