Bernard Durkan (Kildare North, Fine Gael)
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Question 325: To ask the Minister for Agriculture, Fisheries and Food the extent to which the prices paid to the producer and charged to the consumer here compare with the prices for milk and dairy products paid to producers and charged to consumers throughout each of the EU member states; and if he will make a statement on the matter. [4198/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Dairy farmers incomes are comprised of the market price paid for milk and direct income support from the EU. Market forces have a major influence on the price paid to farmers for milk. World market prices determine the returns received by dairy processors and these in turn are reflected in the price paid to farmers. In essence, farm gate prices normally reflect the returns from international markets of dairy product sales. Ireland's peripheral geographic location and highly seasonal grass based production curve has resulted in a dairy production profile heavily based on storable product. Those commodity products, such as butter and milk powders, are low margin products and this is reflected in the milk price.

My Department does not compile data on consumer prices paid for milk across the EU. The following table shows the producer milk prices (in € per 100kg) for the 27 EU member states in October 2009.

Bernard Durkan (Kildare North, Fine Gael)
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Question 326: To ask the Minister for Agriculture, Fisheries and Food the way in which the price paid to the producer here for beef, lamb, pig meat and poultry, compare with those in each of the other EU member states; the way the prices charged to the consumer here for the same product compares with other EU member states; and if he will make a statement on the matter. [4199/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The price paid to meat producers is a function of supply and demand, which has of course been influenced by the global economic downturn, exchange rates and other factors. My Department does not compile data on consumer prices across Europe.

In relation to beef, officially recorded factory prices for R3 grade steer prices in 2009 averaged 287 cents per kilo liveweight. In 2007 and 2008 this price averaged 276 and 317 cents per kilogram respectively. So while the average steer price last year fell by 9% for the year, this still represented a net gain of 4% over the 2007 figure.

The main reason for these price decreases was slow market demand for beef, as reduced consumer spending had some effect on overall volumes, particularly at food service level.

Given the fact that 90% of our beef is exported, producer prices reflect returns available on our main export markets. It is understood from Bord Bia that average retail beef prices in Ireland are to the lower average end of prices in Europe.

Last year, average lamb prices were up one per cent on 2008 at €3.75 /kg dw excl. VAT, which is mainly due to the stronger prices for lamb between the November to December period.

Year to date Irish lamb prices are running 10% below average EU 25 prices. As Ireland exports two thirds of its production, producer prices are more exposed to international market forces than most of our sheep producing neighbours.

Lamb remains the most expensive of the proteins, and any increase in producer prices is dependent on an economic uplift, although the continued contraction in supplies across Europe should help strengthen the producer price this coming year.

The average producer prices received for pigs in Ireland, at 117.5 c/kg dw excl. VAT, are currently running at 90% of the EU average.

European broiler prices started the year reasonably well before dipping below 2008 levels from February and remained lower for the rest of the year. European broiler prices are estimated to have fallen by 6% in 2009, while reported broiler prices in Ireland show a more stable situation. The drop in feed prices also helped broiler producers.