Food prices under the spotlight in IFA published study launched at Ploughing in Offaly

A FOOD price analysis paper setting out the context and background to recent food price increases has been published by the IFA at the Ploughing in Screggan

IFA President Francie Gorman said the debate around the cost of food should be underpinned and informed by context and relevant data.

Referring to analysis carried out by IFA Chief Economist Tadhg Buckley, he said some of the commentary appears to ignore the background to what happened prior to the last 12 months.

Consumers in Ireland had little or no food inflation for over 20 years up to 2024. “In fact, food prices actually were lower in 2021 than they were in 2001, 20 years previously. This was simply unsustainable, and it saw hundreds of producers, particularly in the vegetable and horticulture sectors, go out of business.”

Since then, there have been adjustments based on a range of factors, including the significant disruption to the supply chain caused by the war in Ukraine.

The analysis also shows that the average household spend on food in Ireland in 2023 was 8.6% of overall consumer expenditure. This the lowest across Europe, with the EU average coming in at 13%.

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The IFA President said the last 12 months has seen a correction because prior to that the price of food lagged way behind general inflation.

“Everybody recognises that food costs more than it did in 2024, but the costs borne by producers have also increased. For far too long, the depressed price of food gave a very false impression of what is required to produce food to the highest standards,” he said.

“The least we can expect is that people inform themselves fully of the facts before offering views. The policy direction from the EU and the previous Irish Government has been towards more regulation and less production. This has the inevitable consequence of higher prices. Proposals on the table at the moment don’t suggest any change in that approach, so the likelihood is that prices will remain at current levels or continue to increase,” he concluded.

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