Sunday 07 October 2012
Fearmongering and price fixing
Using grain-based feedstuffs is on course to become unsustainable for many farmers, says Ciara Jackson, head of food and beverage with Grant Thornton, the international business services firm with a specialised food-sector service in Ireland.
After the latest agricultural price indices from the CSO showed a 5.3% increase in some feedstuffs, she said: "The knock-on effect of this will lead to a change in approach for operators in the sector. It will come to the point of where it is unsustainable for farmers to match the spiralling cost of inputs. One possible way for businesses in the sector to counteract these increases is through better financial planning and practices but also through the creation of more buying groups.
"A number of farmers and producers working together to buy larger quantities of feed stuffs and seed at cheaper prices would dramatically reduce input costs and would result in greater profits for them. It is also vitally important that the Government protects this essential indigenous growth industry. While some of these costs are beyond the control of Irish borders, collective and co-operative action by producers supported by the Government is the best way to protect this industry."
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