We're second most expensive country in EU to buy groceries
IRISH people are being forced to pay more than most Europeans for food and we're even being charged more for products that are made here.
Despite a wave of recession-busting price cuts, research showed Ireland is almost one-third more expensive than the UK for common items such as bread, milk and meat.
Shoppers here pay the second-highest prices in Europe with only Danish consumers forking out more for food, new EU research shows.
The figures showed Irish prices were 29pc higher than the EU average, compared to 40pc in Denmark.
Some economists last night blamed the high prices on large chains operating here, which they said earned much higher margins than they could do elsewhere in Europe.
Even though prices have dropped over the last 12 months as a result of the recession, homes here are still paying over the odds.
Figures from Eurostat, the EU statistics agency, showed Ireland was almost twice as expensive as the cheapest country in the union, Romania.
While Greece, Italy, Cyprus and Sweden all had average prices for food and non-alcoholic beverages, Irish prices were almost one-third more expensive.
For breads and cereals we were 32pc more expensive; for meat, 21pc; and for dairy products, 37pc, according to the study of 500 comparable products.
Alcohol was 67pc more expensive than the EU average, which made Ireland the second most expensive country, behind Finland. However, Ireland was the most expensive to buy tobacco products, at 117pc more than the EU average.
Last night, consumer representatives said they were not surprised by the new figures and said there needed to be an investigation of the pricing structures in Irish shops.
Expensive
The Eurostat study of 2009 prices showed Ireland had similar, but still more expensive, prices to Finland.
The figures were calculated using a formula to level all prices across the 27 countries regardless of currency. The Consumers' Association of Ireland said that there was "no great evidence" of prices coming down.
Vice-chairman Michael Kilcoyne said he had received a number of complaints about prices in the retail sector.
"I really think the pricing structure here is going to have to be investigated," he said.
However, Friends First economist Jim Power said food prices had fallen by about 7pc over the last 12 months -- a trend that had been in place for the last two to three years.
This had been coupled with a fall in prices across the board, said Mr Power, so Ireland's "relative position" had not improved.
The economist, who has carried out research for independent grocers' group RGDATA, said the costs of doing business here are more than elsewhere in the EU and chains are earning higher margins.
"The issue is that other European countries have seen similar trends in their food prices," Mr Power said. "It is a global trend, lower food prices. Ireland's relative position would not have improved."
Retail Ireland claimed the Eurostat figures about Irish food and drink prices were out of date. A spokesman said: "Irish food and drink prices have fallen considerably since the survey was carried out. In the last year, food and drink prices have fallen 8.6pc, but today's figures do not reflect this. Irish food prices are now back at 2006 levels."
Irish Farmers' Association president John Bryan said the findings confirmed the country's food supply chain was broken.
"In the UK, food prices are below the EU average, yet UK farmers are getting a higher price than farmers here," he said. "It is clear there is an urgent need to restore equity to the food supply chain with average farm incomes a deplorable €12,000 and the retail multinationals declaring huge profits."
- Shane Hickey
Irish Independent
