Written answers

Tuesday, 20 May 2008

Department of Agriculture and Food

Food Prices

9:00 pm

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 357: To ask the Minister for Agriculture, Fisheries and Food the steps the Government has taken in the past year to combat food poverty; his views on the progress the Government is making towards eliminating food poverty; and if he will make a statement on the matter. [19405/08]

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 358: To ask the Minister for Agriculture, Fisheries and Food the steps he has taken to negate the effects of recent price rises which hit lower income families more; if his attention has been drawn to the fact that soaring food prices are drawing more families into the cycle of food poverty; and if he will make a statement on the matter. [19406/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I propose to take Questions Nos. 357 and 358 together.

Changes in food prices are primarily a function of market forces operating at international, EU and national level. 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. In common with the rest of the EU, Ireland has been affected, both positively and negatively, by higher food prices.

Data on the recent rise in food and non-alcoholic beverage prices must be viewed in the context of Ireland's position regarding overall food expenditure, where the proportion of household income spent on food is among the lowest in the EU. In common with countries such as the UK, Germany and Luxembourg, Ireland would spend a significantly lower proportion of total household expenditure on food when compared to other EU countries, with the most recent estimates putting Ireland at approximately half the EU 27 average for expenditure on food. I am aware of the possible impact of higher food prices on the less well off; therefore this Government will continue to focus on the need to keep in place sound economic and social policies to protect the more vulnerable sections of society.

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