The new president of the Irish Farmers' Association, Mr Tom Parlon, yesterday called on the Government to cut interest rates immediately by 1 per cent as a clear statement of Ireland's intention to join EMU at the "central rate of 2.41 against the German mark".
Mr Parlon said that the level at which Ireland joined EMU was the factor which would have the greatest impact on farm incomes in the future.
He told the annual general meeting of the association that a revaluation of the Irish pound would be an "unforgivable, self-inflicted penalty by an Irish Government on the exporting sectors of the economy".
In a wide-ranging speech outlining the programme for his fouryear term, which began yesterday, Mr Parlon said that the Government would have to stand firm against the "inflation scare tactics" being deployed by British multiples and importers to serve their own narrow interests.
He claimed that sterling was overvalued by 15 per cent and it would "fall quickly to its true level" if the euro was satisfactorily launched.
Mr Parlon pointed out that individual farmers with annual sales turnover of about £30,000 were no match for the corporate foodprocessing sector and retail supermarket sector, which had annual sales of close to £1 billion.
"Farmers are losing the battle of redressing the imbalance of negotiating power in the food chain. Figures published by the association last autumn showed a widening gap between prices paid by consumers and prices received by producers. The dominance of the two or three supermarket groups is a major challenge . . . At a time when supermarkets are issuing loyalty cards to their customers, I intend to test their loyalty to Irish producers."
"For the coming year the association will be closely monitoring the actions of the supermarkets on their commitments to source their product locally."
Referring to below-cost selling, Mr Parlon called on the Tanaiste, Ms Harney, to extend the Groceries Order to include potatoes, fresh vegetables and fruit, which had been the "main target of supermarket price wars since the order was first introduced in 1987".
On the forthcoming CAP reforms, Mr Parlon warned that Ireland was "directly in the firing line as regards the Santer Agenda 2000 proposals for the beef sector". He added: "The Government must gear up for a major fight over the Santer proposals on beef. Ireland's vital interests are at stake."
He called for a major marketing drive to regain lost beef markets. Meat producers were demanding a better return on their annual investment and he wanted An Bord Bia to mount an advertising campaign to promote Irish beef abroad.
The new deputy president of the IFA, Mr John Dillon, said the officers of the association should never lose sight of the fact that they were elected to serve farmers. "What I am saying is this: a yawning gap has grown between the IFA and its membership. When we hear ourselves at council saying that the members are making unrealistic demands, when we say Brussels will never wear that or the Government won't listen to this, are we not really admitting that we have grown out of touch with our members?"