Ciarán Lynch (Cork South Central, Labour)
Link to this: Individually | In context

Question 48: To ask the Minister for Agriculture, Fisheries and Food the steps she is taking to offset food price inflation; if she has consulted with various shareholders including farming organisations on the issue; and if she will make a statement on the matter. [7094/08]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

Changes in food prices are primarily a function of market forces operating at international, EU and national levels. Consistently strong economic growth in developing countries is the main driver of changing world food demand towards high-value agricultural products and processed foods. Slow-growing supply, low stocks, and supply shocks at a time of increasing demand for feed, food and fuel have led to price increases globally. Biofuel production has also contributed to the changing world food equation. In addition, rising input costs, at both producer and processor levels have fed through to put upward pressure on food prices. Pressure on input prices, in particular energy and raw material including feed costs, has combined with strong competition on world dairy and cereal markets in increasing producer prices.

In order to help alleviate some of the market difficulties in the cereals sector, the Council of Ministers decided in September to set the obligatory set-aside rate at zero for autumn 2007 and spring 2008 sowings. This is expected to lead to an expansion of EU grain production by at least 10 million tonnes next year. The most recent annual data available from the Central Statistics Office relates to 2007 when food and non-alcoholic beverages prices, as measured by the food price index, increased by 2.8% on average for that year.