15 Sep 2012
RETAILERS AND PROCESSORS WILL HAVE TO PAY MORE TO PRODUCERSUncategorized
<div style=”text-align: justify; margin: 0cm 0cm 10pt”>Speaking at the ASA Conference in Druids Glen this morning (Fri), IFA President John Bryan said processors and retailers will have to get used to paying producers higher farm gate prices. “This does not necessarily mean increases in consumer prices, as there has to be a better and fairer distribution of the final price back down the price chain. National and EU legislation is long overdue to restore equity in the food supply chain.”
<div style=”text-align: justify; margin: 0cm 0cm 10pt”>Assessing future prospects, John Bryan said it was clear meat prices across the world were going to rise due to a number of factors, including increased demand, significant population growth and a substantial increase in purchasing power among a large part of the population in Asia and China. He told delegates at the conference that the optimism was threatened by higher production costs which have escalated rapidly as a result of very large increases in the costs of feed, fertiliser and fuel.
<div style=”text-align: justify; margin: 0cm 0cm 10pt”>The IFA President said, “A real opening exists for Irish beef exports, especially to broaden our market spread on the world market. USA, China and Japan offer tangible opportunities. It’s past time that the negative legacy from BSE was removed from the table and we get on with the business of market access, including for live cattle to markets such as Libya, Egypt and the Lebanon”.
<div style=”text-align: justify; margin: 0cm 0cm 10pt”>Looking at the policy framework that is needed, the IFA President said we must be able to match our export potential with profitable and sustainable production at farm level. “Profitability at farm level is the key to reaching the <i>Food Harvest 2020</i> targets. The sustainability piece we can do, and do better than anybody else. We have the grass and the rain. We also have Quality Assured production based on a low-carbon model. The profit piece at farm level is very challenging. First of all we have to get a price that gives a reasonable margin over the costs of production. The UK and EU markets are well capable of paying this.”
<div style=”text-align: justify; margin: 0cm 0cm 10pt”>Concluding, John Bryan said, “We have to have a strong CAP policy with a full budget and maintenance of the Single Farm Payment, geared towards family farms producing to the highest standards in the world. At home, Minister Coveney has to defend farmers strongly at the Cabinet and ensure that there are no more cuts to the important farm schemes”.