Martin Daly (Roscommon-Galway, Fianna Fail)
Link to this: Individually | In context

114. To ask the Minister for Agriculture, Food and the Marine the measures being taken to address the rising cost of food and groceries, given that grocery prices are at unprecedented levels; and if he will make a statement on the matter. [66756/25]

Martin Heydon (Kildare South, Fine Gael)
Link to this: Individually | In context

My Department has no role in determining or intervening in prices for food commodities at farm gate or retail level. Market prices are a matter between suppliers and buyers.

It is also important to note that agricultural output prices are only one element of food prices. The final cost also includes processing, transportation, packaging, marketing, and retail costs.

However, my Department closely monitors trends in agricultural output and input prices.

The Central Statistics Office (CSO) reports monthly on the Agricultural Price Output Index, which tracks the prices paid to farmers for their produce, and the Agricultural Price Input Index, which tracks the prices paid by farmers for purchases of goods and services. These prices are sensitive to geopolitical and global economic trends and shocks, and have seen considerable volatility since 2021.

The CSO recently released the preliminary estimates for 2025. The Agricultural Price Output Index is projected to have increased by 15% in 2025 when compared with 2024. The rise in output prices were principally driven by a 41% increase in cattle prices, with sheep and milk prices rising by 5%.

I wish to make it very clear that as approximately 90% of Irish dairy and beef products are exported, it is global rather than domestic prices which mainly determine farm gate prices for milk and cattle in Ireland. Higher commodity prices driven by strong demand globally and lower levels of supply, particularly for beef and milk, have driven higher output prices.

The Agricultural Input Price Index is currently relatively stable with a rise of 1% in 2025. This follows a 7.8% increase in the output index and a 10% decrease in the input index in 2024, compared to 2023.

While slowing inflation and normalising supply chains have helped to reduce input prices relative to their peak in 2022, they do remain at an elevated level compared to pre-2021 levels.

It is also important to acknowledge the role of An Rialálaí Agraibhia (The Agrifood Regulator), which ensures compliance with, and enforcement of, legislation on unfair trading practices in the agrifood supply chain. It also provides information on the agrifood supply chain through the analysis of price and market data.