Irish supermarkets are set to be facing fruit and vegetable shortages in the coming months as growers cut back on production due to rising input costs says the Irish Farmers Association (IFA) (Sheehan, 2022).
A report released in March 2022 by the IFA discussed different challenges the sector faced. These included COVID which reduced the demand for a lot of fruit and veg due to the closure of the hospitality sector, businesses and even garden centres. One very good point made in the report was the decline in the day to day football required by the horticulture sector because of people working from home. This meant that there was no longer the same amount of fruit and vegetables needed on a daily basis for work canteens etc. COVID-19 also contributed to the rising costs the sector is now facing (Irish Farmers Association (IFA) and Jim Power Economics, 2022).
Recently the horticulture sector has seen a huge decline in growers with the The Department of Agriculture Food and the Marine and Bord Bia, (2016) stating that produce growers have fell by 56% from 377 growers in 1999 to 165 growers in 2014. Teagasc estimate that there are around 1000 growers in Ireland however about 250 of these are top growers and producers which supply 85% of the output and deal with consolidators and The Supermarket Central Distribution Centres Directly. These growers are responsible for over 90% of all the fresh produce supplied to retail in Ireland (IFA and Jim Power Economics, 2022).
Finally, and probably the hardest hit impact of all is the huge hike in input increases for growers in comparison to sale price of horticulture products. IFA and Jim Power Economics, (2022) highlights that profit margins are being "squeezed" with the rising input prices (fertilisers, energy etc). These prices are only due to soar especially with the continuing conflict between Russian and Ukraine (The World Bank, 2022). As we can see in figure 1 below since March 2020 inputs such as labour packaging, fertiliser and energy for all products listed have risen.
The IFA horticulture vice-president highlighted that “Farmers had to cut temperatures and conserve energy which then slowed production but caused a flush in a tighter window, meaning a later start to the harvest. It was very difficult because production was lower but costs were increasing,”
Harvests were down by a quarter in April, when they should be at their peak, IFA horticulture vice-president Martin Flynn said, adding that growers were forced to cut temperatures which harmed production and led to a “delayed harvest”. He particularly noted shortages in tomatoes throughout the next couple of months as a result of delayed harvesting from early April to late April.
Michael Gaffney of Teagsc warns growers to not rely on imports to make up for shortages as these shortages and price hikes are being faced globally and not just in Ireland.
IFA horticulture president warns that these rising prices “could see more and more growers go out of business” unless retailers also increase their prices as profit margins are no longer viable to meet the demand of the rising input costs. Brennan also mentions that the The Government’s Exceptional Payment Scheme will not help growers stay in business in the long term.
Again we see that without the support from government and horticultural organisations we could run risk of shortages for retail and consumers. It is evident that price hikes for consumers need to happen in order to somewhat cover the rising input costs for horticulture growers in Ireland. However, as seen in trends elsewhere this is not just an Irish problem but a global problem which could in the future hamper our global food security status.
Bibliography
IRISH FARMERS ASSOCIATION (IFA) & JIM POWER ECONOMICS 2022. Retail Price Consumption Threatens the Viability of Irish Horticulture.
SHEEHAN, C. 2022. Glasshouse Fruit and Vegetable Growers Cut Back on Production as Prices Rise [Online]. The Irish Times. Available: https://www.irishtimes.com/ireland/2022/08/03/glasshouse-fruit-and-vegetable-growers-cut-back-on-production-as-prices-rise/ [Accessed 25/08/2022].
TEAGASC 2021. Horticulture Input Costs 2021- Impact Assessment.
THE WORLD BANK 2022. Food and Energy Price Shocks from Ukraine War could Last for Years. The World Bank.