Food prices show consumers are the losers
IRISH consumers are being forced to pay more than most of their European neighbours for food. Even when it comes to the basic foodstuffs, which are produced domestically, we are being hit by high, even exorbitant prices.
This was the principal finding of a Eurostat report published this week, which showed that Ireland is the second most expensive country in Europe.
The report was based on 2009 prices in 27 countries, and involved the study of 500 comparable products. Even though not overly surprising, the Eurostat report is nevertheless startling.
Irish shoppers pay the second highest prices in Europe for food, second only to Denmark. We are one third more expensive than the UK for common, and essential, items such as bread, milk and meat.
Prices here are 29 per cent higher than the EU average, compared with 40 per cent in Denmark. The bottom line is that even though prices have fallen here over the past twelve months, we are still paying way over the odds.
On a comparative basis, countries such as Greece, Italy, Cyprus and even Sweden all have average prices for food. How does Ireland fare. Not well. Bread and cereal prices are 32 per cent more expensive; meat is 21 per cent; and dairy products 37 per cent.
Meanwhile, alcohol is 67 per cent, while tobacco is 217 per cent above the EU average. Even allowing for the inflation of these prices due to health policy, and for government taxes, this is still too high, and indeed, unfair.
Consumers representatives have responded by stating that there needs to be an investigation of the pricing structures in Irish retail. That is merely stating the obvious.
The Irish Farmers Association's assessment is more stark, saying that the food supply chain has broken down, pointing out that UK food prices are below the European average, yet UK farmers still get a higher price than farmers here.
This, at a time when farm incomes are at a ten year low, according to a recent Teagasc study. For the past number of years, farmers have been warning that most of the food they produce leaves their farms without covering the cost of production.
And what of the role of the Consumers Association. At the end of the day does it have any real bite, or ability to influence. There is a huge discrepancy in what is happening in food prices in the Irish market, and it needs to be addressed. It requires the proactivity of everyone in the food chain, from the producers, processors and retailers. At the end of the day, consumers deserve fair play.
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Wednesday 08 February 2012
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