Dáil Éireann Debate, Thursday - 15 January 2015
110. Deputy Brendan Griffin asked the Minister for Agriculture, Food and the Marine the benefits he expects to accrue to farmers in 2015 as a result of reduced oil, diesel and petrol prices; and if he will make a statement on the matter. [1990/15]
Amharc ar fhreagraI would call on the fuel supply sector to ensure that the maximum possible benefits of the falling prices are fully reflected in retail prices, which will obviously be of direct benefit to the farming sector and all consumers. It is not possible to be precise in quantifying the benefits that might accrue to farmers this year arising from the recent fuel price falls. However I would expect that some indirect benefits may arise through downward pressure in contracting charges and fertiliser costs, although other factors may mitigate the extent to which these costs may fall. These factors include profitability challenges in the contracting sector and falling fertiliser manufacturing capacity in Europe over the past 10 years, which has reduced market supplies. Feed costs are not as heavily impacted by fuel prices and, although the costs of drying, processing and transport will be reduced, other factors will come into play such as global growing and harvest conditions in 2015.
On a broader level I note and welcome the fact that generally input prices are falling, as the CSO’s agricultural input price index was down 3.5% on annual basis in November 2014 compared with November 2013. This is an indication that, amongst other things, the recent fall in fuel prices is already having a real and measurable impact.
