Farm org says food prices have been 'suppressed for decades'
Consumers must "recognise the connection between regulation and cost inflation", the Irish Farmers' Association (IFA) has said.
IFA president Francie Gorman said that the "current debate" about recent food price increases "should be viewed in the context of those prices only increasing by 12% over the last 15 years".
In the same period, the IFA said that the "consumer price index has gone up over 30% while the price of electricity has, for example, gone up 124%".
“Farmers fully understand that no one likes price increases, but the reality is that food prices have been suppressed for the last two decades," IFA president Francie Gorman said.
"Over that time, we have lost thousands of farmers and we are facing a crisis in encouraging the next generation to enter farming."
The IFA said that general inflation has increased the cost of doing business for farmers too.
“The situation was completely unsustainable. Most farmers could not even cover their production costs and still are depending on direct payments from the EU to stay in business," Gorman said.
Average farm incomes in 2024 were just under €36,000. The average weekly earnings, annualised, come to over €53,000 across other sectors, the IFA said.
“This week we see further attempts by the EU Commission to undermine the CAP budget," Gorman continued.
"Politicians should be honest with consumers that they will have to pay more for food if funds continue to be diverted away from supporting food production.
“The reality is the value of these payments have been eroded by inflation and increasing regulations.
"This has led to a reduction in production and a scarcity in key products. Consumers must recognise the connection between regulation and cost inflation."
The IFA said that an "unknown factor" in relation to food prices is "who is getting what" along the supply chain.
"Farmers have been looking for this data for years. We all know what the consumer pays and what the farmer is paid," Gorman said.
"However, there is very little data relating to the returns for other actors in the chain.
“The Agri-Food Regulator is looking for more powers to compel retailers and processors to provide this information and these should be granted by the minister."
