There needs to be a discussion around the value we put on food and what we are prepared to pay for it, according to European Commissioner for Financial Stability Mairead McGuinness.

The Commissioner told a Galway IFA meeting last week that food price inflation needs to be looked at.

“We’re already dealing with energy price inflation. I’ve discussed with my colleagues that we need to be mindful of food price inflation.

“This was before Russia invaded Ukraine. This is an issue that needs to be looked at.

It should not be a threat

“There will be parts of society that will find it very difficult if they have to pay more for energy and more for food,” she said.

Commissioner McGuinness also said that sustainability should not be a threat to Irish farmers.

“It should not be a threat, in fact for farming for industry generally if you’re not sustainable you might survive in the medium term but you won’t in the long-term,” she said.

EU sanctions on Russia

When asked by Roscommon IFA chair Jim O’Connor if there were enough sanctions “available in the EU to put enough of a squeeze on Putin and force him back from Ukraine”, she said everything is on the table.

The only thing we can hope for is by starving the war machine that it can’t continue, it’s about a game of time here

“But equally we have to think of what’s next. Do I think Vladimir Putin is thinking ‘oh gosh they’ve gone with the fourth package [of sanctions], do I pull my troops out?’ No.

“The only thing we can hope for is by starving the war machine that it can’t continue, it’s about a game of time here. This brings us the energy and our absolute dependence and for all our great development in Europe, we’ve ended up being highly dependent. We don’t want to see it happen in food, but unfortunately our food production is highly vulnerable to all of these shocks,” she said.

She also said that the Russian invasion of Ukraine might make everyone wake up and realise that democracy, freedom and food are things that we cannot take for granted and that farmers need to be given credit for feeding Europe.

I think that the extent of increasing fertiliser prices already and likely to be, is bigger than any, if you like, subsidy that could be in place

Bertie Roche, a Galway dairy farmer, asked if the Commission is looking at a “strong subsidy” for farmers towards the cost of fertiliser.

The Commissioner said that there will be a more detailed look at what’s happening in the marketplace, including the fertiliser price and the anti-dumping issue.

“But I think that the extent of increasing fertiliser prices already and likely to be, is bigger than any, if you like, subsidy that could be in place. We do need to look very carefully, because farmers will not be able to afford to pay.

“I think it may make us a little more cautious about fertiliser use and that’s no harm. If there’s a very sharp reduction in supply of anything it’s very hard to match the upward price. If a subsidy would cure the problem, I think we wouldn’t have a problem.”