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LAST UPDATE
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\n 12 Aug\n <\/p>\n
INCREASED PRODUCTION COSTS and a decrease in yield caused by the intense heat and drought conditions this summer may drive up the cost of groceries later this year, a farmer has warned.<\/p>\n
The Economic and Social Research Institute has already\u00a0warned of incoming higher food prices<\/a> due to the closure of the Strait of Hormuz; however, the extreme weather conditions may cause further price hikes.<\/p>\n Last month was Ireland\u2019s driest July on record<\/a>, with 20 Met \u00c9ireann weather stations across the country recording \u2018absolute droughts\u2019. Gardens and parks have turned yellow and brown from the heat and lack of rainfall \u2013 and farmers are acutely feeling the impact.<\/p>\n Tillage farmers are faced with lower yields and added costs of fertiliser to protect crops from the heat, while dairy and beef farmers are eating into their winter feed supplies and forking out for extra feed to replace the grass livestock would usually eat.<\/p>\n The industry is also dealing with the increase in fuel prices caused by the closure of the Strait of Hormuz.<\/p>\n Co Wexford farmer and national grain chairman at the Irish Farmers\u2019 Association (IFA), John Murphy, told The Journal that supermarkets may hike up grocery prices later this year to compensate for the low crop yields.<\/p>\n Murphy said the cost of producing tillage has increased by around 35% this summer, but many farmers will see a decrease in their harvest yield as the heat has caused crops to ripen before maturity, particularly those on lighter, drier ground.<\/p>\n He believes the issues with this year\u2019s crops may cause supermarkets to put up grocery prices to cover any cost increases they may have to pay farmers next year.\u00a0<\/p>\n \u201cI can see the price of groceries going up because of the yield loss in Europe,\u201d he said, adding that he doesn\u2019t think the farmers will see these price increases benefit them until next year.<\/p>\n \u201cIt\u2019s going to be too late for the farmer. The retailers are going to put up the prices and they\u2019re going to win again,\u201d Murphy said.<\/p>\n \u201cThe retailers are really creaming everything.\u201d<\/p>\n The farmer described the mood amongst tillage producers as \u201cvery bleak\u201d at the moment, and warned that more and more people are stepping away from the sector.<\/p>\n \u201cIt\u2019s at the stage where it\u2019s unviable for the tillage sector to be working in Ireland,\u201d he said, calling for increased funding for the tillage sector.<\/p>\n Chairman of the IFA\u2019s fruit and vegetable committee, Niall McCormack\u00a0said unirrigated vegetable crops are down up to 60% and irrigated crops are down by up to 20%, highlighting that growers are facing extra costs due to irrigation requirements.<\/p>\n \u201cThe situation is causing a perfect storm for increased costs and diminished returns,\u201d he said in a statement.\u00a0<\/p>\n McCormack urged retailers to \u201cshow solidarity and lend support\u201d to growers and recognise the expense needed to manage crops and maintain supply.\u00a0\n<\/p>\n Fodder concerns<\/p>\n Meanwhile, Waterford IFA chair and dairy farmer Mark Connors said the lack of grass for livestock this summer raises concerns for the winter.<\/p>\n Speaking to The Journal, Connors said the cost of feeding livestock for farmers this year has risen significantly, but he doesn\u2019t think it will increase the cost of Irish dairy and meat in grocery stores.\u00a0<\/p>\n The farmer\u2019s main concern is how the drought will impact livestock food stores during the winter months as farmers are eating into winter fodder provisions, and may not be able to make enough silage to replace them before winter if the weather doesn\u2019t change.<\/p>\n