Madam, – As a beef farmer from Waterford, the recent report about Irish food prices being among the highest in the EU came as a surprise, especially when I look at what farmers, are being paid for cattle (Home News, June 29th). Even though we export in the region of 85 per cent to 90 per cent of our beef production, with over half destined for the UK, other EU countries manage to sell our Irish produce for less than it sells for here, even allowing for transporting costs.
While in Ireland, farm-gate prices are way below those received by UK farmers, UK consumers pay just 2 per cent over the average EU retail price for meat. There seems to be huge discrepancies between farm-gate price, retail price and the concentration of supermarkets.
Why are Irish farmers receiving only €3.07 per kilo for beef when Italian farmers, on the same week, get €3.50 per kilo (R3 Steers, June 20th, 2010, Bord Bia)? Even though the Irish farmer is receiving only 87 per cent of the Italian price for beef, the Irish consumer is actually paying 10 per cent more than the Italian consumer.
The Italians have a grocery pricing structure of 8 per cent higher than the EU average, but supermarkets have only a 50 per cent market share of grocery sales. This is possibly why Italian drystock farmers are better paid for their produce and consumers are being charged less. This clearly indicates that where there is less supermarket dominance in the retail sector, both the farmer and the consumer get a better deal.
Ireland has the second highest food and drink prices, consumers paying an average of 29 per cent above the EU norm for groceries and 21 per cent above for meat. Is it possible that the supermarket dominance of the retail sector is playing a part in such discrepancies?
It’s no wonder that Irish farmers are finding it tough to make a living. Where is the balance of power? Clearly, it’s in the hands of the supermarkets. – Yours, etc,