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Farmers hit as diesel price soars
06.05.08
by Liam Porter, Inishowen Independent
MANY farmers in Inishowen could be driven to the
wall unless drastic action is taken to alleviate the
hardships caused by the spiralling cost of
agricultural diesel, former councillor Jim Devenney
has suggested.
Mr. Devenney who runs an Agri-Care business in
Newtowncunningham told the Inishowen Independent he
was aware that many farmers are feeling severe
pressure because of the rising diesel costs. |
“I know some of my
customers who burned €50,000 worth of diesel last
year and this year that cost will rise to €80,000
and that’s just for fuel so they can move their
machinery around. That’s a massive increase for
farmers to have to deal with and unless action is
taken the knock on effects could be disastrous.”
The Newtown based businessman insisted a major
debate on farm and food prices is needed as a matter
of urgency and maintained that while food prices to
consumers are continuing to rise, farmers who are
facing all sorts of price increases are not however
getting increases for |
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the goods they produce.
“There needs to be a very serious look at the whole
middle management area of food production and sale.
There is somehow the impression that because of the
costs consumers are being charged that farmers must
be making lots of money and that is not the case.”
Instead, according to Mr. Devenney, while the cost
of basic foodstuffs have been spiralling upwards,
often farmers have found themselves getting less for
their produce.
“It’s often the case that those in the middle will
cut the price they pay to the consumer and increase
the price they charge to consumers. There can be no
doubt that there needs to be a major examination of
the whole middle section of the food sector.”
In the meantime he also suggested that the
government could take immediate action to raise
rebates and reduce VAT on agricultural diesel in an
effort to help farmers deal with a problem, he
suggested was showing “no signs of abating.” |
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