The Irish Natura and Hill Farmers Association (INHFA) has contributed to the debate around ongoing price increases, saying that farmers cannot be “collateral damage” in the battle to curtail food price inflation. INHFA president Vincent Roddy says that, “Food producers are facing massive increases in input costs this year and these higher costs will have to be reflected in farm-gate prices.”
As such, the farmer body affirms that the increased cost of producing food has to be recognised by both supermarkets and consumers and cannot be “conveniently ignored”.
“Urea that could be bought for €400/t last year is now costing €950/t. Ration prices have edged over the €400/t [mark] and are still rising, while silage contractors still cannot commit to prices for the season ahead. This is the environment in which farmers are operating. And it is the reason why farmers need price increases. They simply cannot afford to absorb the increased input costs,” he comments.
The INHFA’s view is that said the challenge posed by higher food prices should not delay Government action in areas such as below-cost selling by supermarkets. “It is vital that below-cost selling is banned as a starting point. The actions of the supermarkets over time have negatively impacted on the overall supply and price of food, by cutting returns for local producers and effectively forcing some operators out of business. This has been seen particularly in the horticulture sector.”
With food inflation already at 2% in January, it is expected to increase further in the near future, as the recent hikes in fertiliser, feed and fuel are reflected in supermarket prices.
The INHFA president also comments that, “More generally, the downward pressure on food prices has driven greater specialisation over diversification within farming. And this has left us in a dangerous place with regard to food security,”.