There was no change in the prices paid to farmers for vegetables they produced in the 12 months between January 2021 and January 2022, according to the Central Statistics Office (CSO).

The CSO analysis also revealed that overall farm input costs increased by some 26.4%, and within this fertiliser prices increased 127%, over the same period.

Vegetables were revealed by the CSO to be the only farm commodity which has not seen some level of price increase over the period analysed.

Meanwhile, Irish vegetable growers are exiting the sector and closing down their businesses at a rapid rate due to the lack of viability of their businesses.

Leaving this year

Galway field vegetable producer Seán Mahony told the Irish Farmers Journal that the CSO analysis was no surprise and highlighted that, in fact, vegetable prices have “stayed the exact same” since 2009.

He said production of field vegetables, including cabbage and broccoli, is “no longer worth it” when the various costs are now taken into account.

“Nobody will ever get into this game again. They can’t afford it, there is too much investment and risk and they can’t get labour,” he said.

The Galway farmer warned that more vegetable farmers will continue to leave the sector this year, as he said retailers are “just crucifying us”.

Mahony, who supplies to Supervalu and Dunnes Stores, said there has been a small lift in prices in recent weeks, but that this is “not enough”.

Retailers

The Irish Farmers Journal contacted some of Ireland's main retailers to seek comment on the CSO analysis and to ask if they have any plans to increase the prices paid to farmers for vegetable produce considering the rising input costs they are facing.

Tesco Ireland declined to comment.

Aldi Ireland’s group buying director John Curtin said that the retailer pays “fair prices to all its Irish suppliers”.

He said: “We have developed long-term, mutually beneficial relationships with our suppliers, pursuing a partnership approach.

“We are currently working very closely with our Irish supply base as a result of the significant cost pressures being felt across the market. Our primary focus on sourcing in-season Irish produce remains.”

Inflation

A SuperValu spokesperson said the retailer is “conscious of rising price inflation across all sectors due to increased costs for energy, transport and raw materials” and that the company is “doing all that we can to offset any price inflation”.

The spokesperson said Supervalu “always endeavour[s] to deliver the best value for suppliers and customers alike”.

A Lidl Ireland spokesperson said the supermarket has “clear and transparent contracts and agreements with all suppliers” and claimed is has “always and will continue to proactively engage with and support suppliers in navigating harsher market conditions”.

“We are in constant contact to discuss any challenges to sourcing or supply chain, be that inflationary pressures or other external factors such as the war in Ukraine.”

Lidl said that on 86% of its vegetable supply lines, there has been an increase in the price paid over the 12-month period the CSO analysed.

Fear

A Dublin-based vegetable grower said he is fearful of discussing prices with the media, as it may lead to contract repercussions with the retailers he supplies to.

Remaining anonymous, he said: “The next time we’re negotiating [price], they could pull this up.”

He said “retailers have locked us at prices which are not sustainable” and warned that the “Government has stuck their heads in the sand on the issue”.

The vegetable grower said that politicians must prohibit the practice of below-cost selling by retailers.

He described how some farmers have stopped producing due to the lack of viability of their businesses and “won’t have the resources to start again”.

Report

Meanwhile, the Irish Farmers' Association (IFA) has commissioned economist Jim Power to carry out a report into the impact of price compression in the retail sector on the horticulture sector. IFA president Tim Cullinan will launch the report on Monday.

An IFA spokesperson said the sector is worth nearly €500m at farmgate level, but the number of growers has declined sharply in the last 10 years.

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Irish vegetable growers exiting sector rapidly