Written answers

Tuesday, 24 April 2007

Department of Agriculture and Food

Food Industry

11:00 pm

Paudge Connolly (Cavan-Monaghan, Independent)
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Question 759: To ask the Minister for Agriculture and Food her plans to ensure that farmers and their representative associations be permitted to negotiate prices and conditions for their products against powerful big business interests; and if she will make a statement on the matter. [14517/07]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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Changes in food prices are primarily a function of market forces at international, EU and national levels. How these changes come about is a complex matter based on demand, input costs and the ability to supply product at a competitive price. For a country that exports almost 80 per cent of their agricultural output, competitiveness is the major issue for the farming and food processing sectors. It will dictate the commercial future of our farms and ultimately it will decide farm income.

The State's role is to facilitate a climate that assists competitive drive and innovation, for example, through the implementation of the Agri Vision 2015 Action Plan. At EU level a range of market support measures are operated, while the exchequer and the EU together also provide almost €2 billion per year in direct payments to support farm income.

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