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Kathleen Funchion: Calls for food regulator to protect farmers

Kathleen Funchion: Calls for food regulator to protect farmers

Kathleen Funchion urged the establishment of a food regulator to secure fair prices for farmers and said the bill is a necessary first step that will require amendments. She highlighted local impacts in Carlow and Kilkenny, supported calls to revive the sugar beet industry, and criticised dominant processors and retailers for squeezing producers.

Support for sugar beet revival


She agreed with Deputy Durkin about the devastating loss of the sugar factory in Carlow, described that loss as still keenly felt in Carlow, Kilkenny and the wider South East, and said she hopes groups trying to revamp the industry might count on government support.

Farmers' pricing and market squeeze


She said many farmers, particularly smaller beef and sheep producers, are angered that pricing per head has fallen while supermarket prices remain high. She cited a specific example of a sheep farmer receiving an average €70 per animal while the same animal can earn a retailer well over €400.

Call for a stronger food regulator


She welcomed the move to establish a food regulator, noting it has been a long-standing demand by Sinn Fein and will be widely welcomed by the farming community. She argued a regulatory authority must have the power to act against the "long-standing stranglehold" of dominant processors, especially meat factories and multinational retailers, to deliver fair prices to Irish farmers.

Local farming strengths and costs


She praised Carlow and Kilkenny as producers of top-quality, sustainable food from smaller family-owned farms with good traceability and free-roaming animals. She also highlighted rising input costs for farmers, including an increase to €1 per tag, and reported anecdotal concerns that factories sometimes do not pay for the whole animal, adding further financial pressure.

Kathleen Funchion — shot from speech: Kathleen Funchion: Calls for food regulator to protect farmers (19.01.2023)

Legislative progress and next steps


Although she welcomed that the bill has reached this stage, she stressed it should be seen as a first step and said many amendments will be needed. Her remarks called for continued attention to ensure the measure effectively addresses pricing imbalances and supports smaller producers in Carlow and Kilkenny.

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Transcript
Thanks very much. At the outset, I wasn't expecting to mention this, but seeing as Deputy Durkin brought up the sugar beet, I just want to agree with his comments in relation to that. We obviously had the sugar factory in Carlow, and it was a huge loss, a devastating loss to not just Carlow, but the wider constituency of Carlow Kilkenny and I would say the South East, and we really haven't recovered from that loss, so I just want to support his comments in relation to that, and hopefully I know that there's various groups trying to maybe revamp that industry, and hopefully they might be able to count on the government's support with yourself, Deputy Durkin, if they're looking for support there. Obviously, the constituency of Carlow and Kilkenny is a mix of urban and has a large rural section to it as well, so I'm delighted to get the chance to speak on this bill, and as previous colleagues have said, the establishment of a food regulator has been a long-standing demand by Sinn Fein, and I know it will be widely welcomed throughout the farming community of Carlow and Kilkenny. I'm often contacted by various farmers, beef and sheep farmers who feel large processors, and by extension retailers that they sell to either at factory or through their local marts are reaping huge profits, and it's at their expense. Pricing per head has been fallen, and I know from those I've spoken to that they are angry, but on the one hand, they are losing money on their livestock sales while simultaneously supermarket prices have never been higher. A regulatory authority with the power to take action against the long-standing stranglehold of dominant processors, particularly meat factories and multinational retailers is crucial in delivering a fair price to Irish farmers. Carlow and Kilkenny are some of the finest food producers of anywhere in the country. Many would say we are very blessed with top-quality land and that the best of top-quality produce is grown throughout the counties. However, for too long we have allowed farmers, and I'm talking about the smaller farmers here, that don't have the same resources to take on factories or marts to get better prices to the mercy of large meat factories. Our animals are predominantly on smaller family-owned farms and are free-roaming with first-class traceability practices, which all ensures we are producing exceptional and sustainable foods that many other countries just cannot compete with. I know my colleague Deputy McCarthy has spoken on many occasions about the significant delays in getting this bill to this stage. However, I do welcome that we are actually here. I think it is positive, but it is important that it is just seen as a first step, as I think there is obviously a lot of amendments needed. Recently, I was shocked to hear what farmers actually get in relation to – this is in a particular case of a sheep farmer – he gets an average €70 per animal, and the same animal has the potential to earn the retailer well over €400. I actually think when people hear that, if you are not involved in agriculture on a day-to-day basis, you would be shocked, because we all know the price of meat in supermarkets or butchers, and obviously farmers are not getting their fair share of that in any way, shape or form. A lot of the factories we know are a law unto themselves, they control everything, they dictate what prices are, and I have heard anecdotally that farmers do not get paid for the whole animal, and they could amount to another 10 euro per hedge, so that a farmer could get further animal. I know, sorry, I am out of time loss, but just to say, another issue that came up is the increase in cost in the tags, that it is now 1 euro a tag, and it all adds to the cost of the farmer, but still they do not seem to be getting their fair share. So I will leave it at that because I am out of time, thanks.