Although I am satisfied with the excellent performance of the agri-food and fish sectors since 2010 I am of course aware of the challenges which must be faced including increased cost of inputs such as fuel, feed and fertiliser as well as access to credit. As I have stated before, agri-food exports are also subject to international commodity price fluctuations as we have seen in recent months in relation to milk prices. Teagasc research suggests that producer margins will fall in 2012 compared to 2011. However, they also believe that the decline will not cause margins to go below those experienced in 2010, which overall was a good year for the agri-food sector. Fuel feed and fertilisers are global commodities that have been subject to high volatility in recent years. The EU is supporting the efforts of the G20 to deal with this volatility. One of the measures that has already been implemented is an agricultural markets information system that provides detailed information concerning stocks and potential harvest data. This will provide more certainty to international markets and help to reduce speculative pricing in the sector. Work is continuing at both the FAO and within the G20 to monitor and manage price volatility for both food and inputs to food production. Ireland must continue its discussions with its EU partners to create a CAP that meets global obligations in relation to trade and emissions while at the same time ensuring a properly functioning agricultural market for its farmers.
