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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
Inishowen farmers are feeling the pinch of soaring diesel prices.
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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