Europe to address rising feed costs

The debate, instigated by the Conservatives, was the first time food prices have been discussed by the parliament despite growing pressure from the food chain in recent months.

It was called to propose regulatory action to ensure retailers do not take advantage of the rising production costs, protecting consumers and farmers alike.

The motion was given support from across the political divide, with an overwhelming majority of 464 votes in favour, and just 30 against.

Neil Parish, Conservative chairman of the European Parliament's agriculture committee, instigated the debate.

He said: “Food prices will naturally rise and fall in the marketplace, but we are concerned by the massive discrepancy between the relative small increase in the price of wheat and the massive increase in supermarket prices.

"Consumers and farmers are the victims of food price hikes. For the first time in 25 years, food security is becoming an issue again.”

In adopting the resolution, MEPs have called on the Commission to investigate discrepancies between farmgate prices and retail prices.

Research from TNS Worldpanel shows that in the last 12 months the supermarket price of milk has gone up 11 per cent, eggs by almost 18 per cent, butter by 5 per cent and meat by 6 per cent – all well above the rate of inflation.

Consumers were also faced with a rise in the price of bread of 30-40 per cent , when the price of wheat has risen by just 10 per cent.

Asda has already announced a high-risk strategy to absorb the increases, hitting its profit margins but ensuring its customers continue to get value for money.

Increased use of grain for biofuels, high demand for food in developing countries and poor harvests in producing countries have seen feed prices rocket over the past year – a trend which looks set to continue in the run-up to Christmas.

Supporting the resolution, Ulster Unionist MEP Jim Nicholson said: “Farmers cannot continue to absorb rising costs any longer.

“Europe must address concerns about food insecurity in a meaningful way and as part of the CAP Health Check undertake an in-depth analysis of world market trends, including the increased demand for food in developing countries, in order to consider the creation of permanent mechanisms to guarantee an adequate market supply in the future.”

MEPs also used the session to call on the Commission to authorise direct payments to livestock farmers – especially those affected by disease outbreaks who would feel the brunt of any feed price increases.

The plenary session also saw MEPs reject attempts to impose export quotas and tariffs on EU agricultural production.

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