FG criticises high food prices

Shoppers are paying high food prices but farmers are not getting the benefit, it was claimed yesterday.

In a food survey carried out for Fine Gael as part of its "Rip-off Ireland" campaign, a basket of basic foodstuffs cost an average of €22.97, but earned the farmer €8.77, a margin of 162 per cent.

And an average margin of 247 per cent was paid for one item.

The basket contained beef, milk, eggs, cabbage, carrots, cauliflower, mushrooms, lettuce and potatoes. The goods were purchased in Tesco and Superquinn supermarkets online and in Dunnes Stores' St Stephen's Green branch between July 3rd and 12th.

The highest margin found was on cabbage, which sold at an average of €1.39 a head, with the farmer getting just 40 cent, a margin of 247 per cent.

Cauliflower earned 45 cent for the farmer but sold at an average of €1.49, a profit of 231 per cent.

And the margin on a dozen free-range eggs was 198 per cent, with shoppers paying an average €3.58 and farmers earning €1.20.

A head of cabbage purchased in Dunnes Stores showed the highest individual mark up of 272 per cent, but Superquinn showed the highest overall margin, of 174 per cent, on the whole basket of goods.

Fine Gael spokesman on agriculture and food Denis Naughten TD said consumers need to know why they are not getting a better deal and farmers deserve to know why they are not getting a fair price.

"Retailers are continuing to make huge profits from the Irish market at the expense of both consumers and farmers, with the consequence that quality Irish food is being undermined and farmers are at risk of going out of business."

However, Retail Ireland, the Irish Business Employers' Confederation (Ibec) group, said the statement made by Mr Naughten was groundless and grossly misleading.

Torlach Denihan, director of the group, said the survey ignored the costs borne by retailers after a product has left the farm gate and before it is sold, including processing, storage, refrigeration, packaging, advertising, marketing, merchandising and distribution costs.

"The Irish retail market is highly competitive and food price inflation has been far below the general rate of inflation. Politicians need to focus on addressing this imbalance."

Minister for Trade and Commerce Michael Ahern said FG was repeating a gimmick it did last year. "Fine Gael clearly has never reconciled itself to the end of the order and is now trying to claim that prices have gone up because of this action."