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Irish Independent
a day ago
- Business
- Irish Independent
Low food price inflation cutting into profits for Wicklow farmers and producers
Ms McKenzie, an organic sheep farmer from Redcross, has weighed in on the current debate about recent food price increases, which IFA president Francie Gorman has said should be viewed in the context of those prices increasing by just 12pc over the last 15 years, while the Consumer Price Index (CPI) has gone up over 30pc, and the cost of electricity by 124pc, over the same period. Echoing IFA assertions that food prices have been suppressed for the last two decades, Ms McKenzie said that the topic comes up at all IFA meetings she attends, adding that the combination of comparatively low food price increases and rising costs to produce food has resulted in a 'worrying time within the industry'. 'Unlike other products in the Consumer Price Index, food prices haven't increased over the years, and, as farmers, we're very worried about that,' she said. 'Food hasn't gone up at the same rate as other products, 12pc over the last 15 years. But in comparison, the Consumer Price Index of other things is up 30pc, and electricity has gone up by 124pc, which is crazy. 'That makes it an uneven playing field if the price of what we produce doesn't go up at the same rate of inflation. 'We're also consumers. We go shopping and see the price of food going up. Then we look at the price we get for what we produce, and it doesn't necessarily go up, while all our costs do. The price of doing business and producing our lamb and our tillage is more and more expensive. 'It's all cutting into any kind of profit that could be made. The corn might already be in the ground, and needs to be combined, but are you combining a crop that's not worth anything by the time you get it for sale?' Highlighting how average farm incomes were just under €36,000 in 2024, while the average weekly earnings, annualised, come to over €53,000 across other sectors, Ms McKenzie, who has agri-tourism shepherd's huts on her farm, explained how Wicklow farmers and food producers do their utmost to increase their margins through diversification. 'We're a mighty little county, and we have good tillage ground, good mountain lambs coming off the hill,' she continued. 'We're very diverse in our agricultural output, so food prices affect a broad section of the county. 'In saying all of that, I think you have to caveat that with the fact that in Wicklow, we're very good at diversifying. All of us are trying to do something else, whether that be agritourism or whatever. 'The Tinahely show is the perfect example of that great crossover of what Wicklow can produce and the extra bit that we do to push up the margins.'
Irish Examiner
6 days ago
- Business
- Irish Examiner
Irish Examiner view: CAP remains key to the entire rural economy
While we have long ceased to be an agrarian economy, food and agriculture remain vital cogs in the Irish economic machine. So when farmers voice concerns about changes to funding from Europe, we should listen. Farming might not be sexy to an urban population, but that population would find itself greatly impoverished without the things farmers produce. And the industry has such a seasonally and weather-dependent income, with wild fluctuations for the same produce or livestock over the course of time, that any disruption to more guaranteed lines of money become grave situations very quickly. This week, we heard from the Irish Farmers' Association that there is 'a big battle ahead' over EU farm supports, as well as fears that reforming the Common Agricultural Policy (CAP) — a European set piece — from 2027 will only undermine food production in this country. It is true that there is only ever so much money to go around, and that other countries have different priorities. It is also true that with European countries pivoting more toward defence spending, the money available for workhorses such as farming could be reduced to allow for investment elsewhere. The EU itself has previously announced an €800bn fund for defence, as well as earmarking sums for investment in AI so the bloc doesn't fall behind the likes of the US and, increasingly, China. Yet, we should be conscious of IFA president Francie Gorman's assessment that 'the CAP provides an annual injection of nearly €2bn into our rural economy to support food production … the CAP has been the cornerstone of the multi-billion export sector that underpins thousands of jobs in regions far from the urban centres'. We are known globally for our food and drink exports. They support many thousands of jobs nationwide, and Irish food can be found worldwide. But, as it is, regular readers of our farming supplement will know that many farms are already dependent on off-farm income, or are struggling to find successors. It would be devastating not just for rural Ireland, but for the economy as a whole, if the farming sector faced any significant decline. Housing targets Every day there seems to be a tighter squeeze on the housing market, from the median house price rising by a mind-numbing €35,000 in a year to parents needing to give substantial help to children buying their first homes to, now, finding that there were just 32 rental houses eligible for the housing assistance payment — and none at all in Cork City. Cork, you'll remember, has been targeted for enormous growth under the Government's development plans. But every day the goals and targets seem to not be getting closer, but to be running off into the distance. We are nowhere near completing the number of houses annually that experts believe the country needs and, quite apart from the cost of raw materials, the Irish Examiner has reported in recent weeks on how Ireland will need tens of thousands of extra workers just to meet building demand. Apartments may not be to everybody's liking, but they remain an efficient way of creating housing density in a relatively small area — the problem being that the higher the building, the more excruciating the cost. What more can be done at government level to address this? The housing crisis will, regrettably, only get worse before it gets better — and we have too many homeless families in this country as it is. What's your view on this issue? You can tell us here Body positive For a species that is naturally so varied in adaptability, taste, and any other category you can think of, we are on the whole utterly useless at properly supporting that diversity. We could pick any example, but in this instance let's focus on body image. Most of us do, after all, try to encourage our children (and grandchildren) to be their own person, to be comfortable in their own skin, to be who they are. So it is, as always, disheartening when you see online pile-ons criticising how anybody looks. The most pertinent this week being the actress Jennifer Love-Hewitt appearing at a film premiere not as she was in her 20s but — shock! horror! — like the woman in her mid-40s that she is. Body shaming is by no means an exclusively male endeavour, or even an exclusively adult one, but letting it go unchallenged seems like a disservice to, well, everyone. And we should note that this is the case when it comes to Love-Hewitt, with many people pushing back against the negative comments and praising her for her more natural look. While there is something to be commended in rejecting Hollywood stereotypes of what a woman — or indeed man — should look like, ultimately the positive portrayal and inclusion of different body shapes is far more important. The simple act of confidently existing should be enough, but even a cursory glance online will show that the act of existence can be seen by too many people as almost a personal affront. The battle to meet expectations for looks on screen has also seen some male stars going to absurd lengths. Chris Hemsworth has a special routine to drain fluid from his arms to make them look more muscular on camera, while Hugh Jackman typically doesn't drink for two days before shirtless scenes as Wolverine. None of this is healthy or relatable, yet some actors and actresses feel they have no choice because of whatever role they play or persona they have created. The objectification of the body, while it has sadly always been with us, seems to feel more weaponised in an era where influencers and grifters dribble detritus onto the phones of teens and adults alike 24/7. Certainly, there is an air of entitlement to judge, even if doing so shows the judges to be deficient in a great many qualities from empathy to discernment. The lesson, surely, is that for all our positive reinforcements, we as a species have a long way to go before we can truly be said to embrace our differences. Read More Irish Examiner view: International aid has a long way to go yet
Irish Examiner
7 days ago
- Business
- Irish Examiner
CAP proposal will downgrade food production, says IFA
Farming groups in Ireland and across Europe have criticised EU plans to overhaul the Common Agricultural Payment (CAP) system under new reforms, saying the key farm payment was being downgraded. Under new budget proposals, Brussels is set to propose capping the EU subsidies a single farmer can receive each year, in an attempt to redistribute the bloc's massive farming subsidies in favour of smaller businesses. The proposal would merge the CAP's current two-pillar structure into one fund. CAP, today is worth around €387bn, or a third of the bloc's entire budget. The commission proposal would attempt to redistribute more subsidies to smaller farmers by capping at €100,000 per year the area-based income support they can receive, the draft said. It would also progressively reduce the amount paid out per hectare for those receiving the most. For example, farmers receiving area-based income support above €20,000 per year would have their subsidies above this level cut by 25%, payments above €50,000 per year would be cut by 50%, and payments above €75,000 by 75%, the draft said. Speaking from Brussels, Francie Gorman, president of the Irish Farmers Association (IFA) said what is emerging about how farming will be funded from 2027 is very concerning. 'It is clear that the EU Commission is downgrading the importance of the CAP and food production to allow for greater spending elsewhere,' he said. 'The CAP is being turned into an environmental and social policy. Support for farmers who are producing the most food is being consistently reduced. "The commission seem more interested in finding ways to cut payments to individual farmers rather than support them,' he said. 'At a time when Ireland is a net contributor to the overall EU budget, this level of investment in every parish takes on even more significance. "CAP has been the cornerstone of the multi-billion export sector that underpins thousands of jobs in regions far from the urban centres,' he said. President of the ICMSA, Denis Drennan said the 'reforms' were actually just a speeded-up timetable for the EU's withdrawal of direct supports to farming and primary food production. 'Farmers are going to suffer losses under these proposals and that is indisputable fact,' he said. He said the only absolute certainty arising out of the announcements was that high standard and sustainable food production within the EU would fall and that food prices across the EU would rise as farmers will have to seek more from the marketplace to replace the reduced supports. Mr Drennan said it was absolutely incumbent on the EU Commission to spell out exactly the implications for a typical Irish dairy or livestock farmer in terms of the financial loss under its proposals and how they expect those farmers to make a living based on the commission proposals. This is not the first time Brussels has attempted to cap subsidies, to limit payouts to big landowners and agro-industrial firms. President of the ICMSA, Denis Drennan said it was absolutely incumbent on the EU Commission to spell out exactly the implications for a typical Irish dairy or livestock farmer in terms of the financial loss under its proposals. Picture: Dylan Vaughan "In the previous CAP, roughly 80% of payments went to 20% of the beneficiaries. Past proposals to do this were rejected by EU governments concerned about their farming industries. EU countries and the European Parliament must approve the new budget for 2028-2034. The policy would set overarching EU-wide green targets that farmers must meet to receive subsidies, while obliging countries to set additional, locally-tailored conditions. The minister for agriculture, food and the marine, Martin Heydon said the complex legislative proposals will need detailed consideration. 'The commission is proposing major changes in structure that we will now study in detail in order to better understand the impact on Ireland,' he said. 'Today's publication is just the beginning of a protracted process. "Member states will, through the Council of Ministers, begin the process of agreeing a general approach to the commission's proposals, before engaging in line-by-line negotiations with the EU Parliament and the EU Commission.' Additional reporting Reuters
Irish Examiner
7 days ago
- Business
- Irish Examiner
'Big battle ahead' on EU supports for farming, IFA warns
The Irish Farmers' Association has warned of a "big battle ahead" for vital EU supports for farming, ahead of the publication of the European Commission's proposals for the next EU budget post-2027 and the next Common Agriculture Policy (Cap). Speaking from Brussels, IFA president Francie Gorman said what was emerging about how farming will be funded from 2027 was "very concerning". 'While we will have to examine the specifics in more detail, it is clear that the EU Commission is downgrading the importance of the Cap and food production to allow for greater spending elsewhere,' he said. 'The Cap is being turned into an environmental and social policy. Support for farmers who are producing the most food is being consistently reduced. The commission seem more interested in finding ways to cut payments to individual farmers rather than support them,' he said. "As it stands, the Cap provides an annual injection of nearly €2bn into our rural economy to support food production. 'At a time when Ireland is a net contributor to the overall EU budget, this level of investment in every parish takes on even more significance. Cap has been the cornerstone of the multi-billion export sector that underpins thousands of jobs in regions far from the urban centres,' he said. The EU Commission also needs to be honest with consumers. Cutting Cap funding will reduce food production and lead to food price inflation. 'These proposals will have to be approved by the member states and the EU Parliament, so there is a long journey ahead and we will expect a real fight from our Government and MEPs. 'The EU presidency, which Ireland will assume this time next year for the second half of 2026, takes on added importance. Our Government has to secure the maximum funding for Irish farmers to encourage the next generation to consider farming as a career. "From the Taoiseach down, this has to be front and centre of every discussion across those six months,' he said. Commenting, agriculture minister Martin Heydon said: 'These are complex legislative proposals which will need detailed consideration. The commission is proposing major changes in structure that we will now study in detail in order to better understand the impact on Ireland. 'This publication is just the beginning of a protracted process. Member states will, through the Council of Ministers, begin the process of agreeing a general approach to the commission's proposals, before engaging in line-by-line negotiations with the EU Parliament and the EU Commission. "This will take some time, and I fully expect the progression of these proposals to be a significant feature of Ireland's presidency of the EU Council in the second half of next year.' The minister will host the first meeting of Ireland's Cap consultative committee on Thursday, which will engage in detail on these proposals. Read More Agricultural output price index up 20.7% in the 12 months to May
BreakingNews.ie
16-07-2025
- Business
- BreakingNews.ie
Common Agricultural Policy: Irish farmers expecting bad news in overhaul to EU funds
Irish farmers are expecting bad news on Wednesday when the European Commission announces a major overhaul of the Common Agricultural Policy (CAP). The Commission is expected to merge CAP into a "super fund" along with other sectors, meaning agriculture will no longer have a ringfenced budget. Advertisement The Irish Farmers' Association (IFA) said changes to the European Union's farming subsidies are potentially devastating coming alongside potential US tariffs. IFA president Francie Gorman told Newstalk radio that it will impact farmers and consumers who buy their products. The mammoth CAP is today worth around €387 billion, or a third of the bloc's entire budget for 2021-2027. Brussels is also set to propose capping the EU subsidies a single farmer can receive each year, in an attempt to redistribute the bloc's massive farming subsidies in favour of smaller businesses, a draft European Commission proposal seen by Reuters, showed. The document is part of the Commission's proposal for the EU's next budget, due to be published on Wednesday. Advertisement The Commission proposal would attempt to redistribute more subsidies to smaller farmers, by capping at €100,000 per year the area-based income support they can receive, the draft said. It would also progressively reduce the amount paid out per hectare, for those receiving the most. For example, farmers receiving area-based income support above €20,000 per year would have their subsidies above this level cut by 25 per cent, payments above €50,000 per year would be cut by 50 per cent, and payments above €75,000 by 75 per cent, the draft said. This is not the first time Brussels has attempted to cap subsidies, to limit payouts to big landowners and agro-industrial firms. In the previous CAP, roughly 80 per cent of payments went to 20 per cent of the beneficiaries. Advertisement Past proposals to do this were rejected by EU governments concerned about their farming industries. EU countries and the European Parliament must approve the new budget for 2028-2034. A Commission spokesperson did not immediately respond to a request for comment on the draft, which could change before it is published. Ireland Coroner rejects calls to refer details to gardaí a... Read More The draft would set overarching EU-wide green targets that farmers must meet to receive subsidies, while obliging countries to set additional, locally-tailored conditions. "The new CAP is to be a simpler and more targeted Union common policy, with more flexibility for farmers and a shift from requirements to incentives," the draft said. The draft did not confirm the size of the new CAP. Its core would still be direct income support for farmers, which would be "ring-fenced" – meaning it cannot be spent on anything else. The proposal would merge the CAP's current two-pillar structure into one overarching fund – a move opposed by the influential European farmers' lobby COPA-COGECA. – Additional reporting: Reuters
