AN agricultural contractor says he fears for his livelihood if fuel prices continue to spike.
Shaun Friel, of S Friel Agri-Contracts in Kerrykeel, says he has 2,000 litres of diesel at the minute, with a delayed delivery not arriving until next week.
Speaking to the Donegal News, Mr Friel said filling one of his tanks has more than doubled in priced in the last 18 months.
“The cost has been going up rapidly for quite some time. The cost was €1.45 a litre for a while, this rose to €1.60 and now it’s exorbitant.
“We’re not out of diesel yet but not far off it. I would use between 5,000 and 6,000 a week in the summertime. I have 2,000 litres left at the minute. If the weather was good at the minute we would have five or six machines burning diesel.”
Mr Friel has been in business for 17 years, offering all agri contracting work, silage and bailing. He has two full time members of staff. During busier periods, he has up to five staff. He said the current situation is the “worst he has ever seen it”, except for a time in 2008 at the height of the recession.
“We will be out of business if this is not sorted out. I have heard of a diesel rep who spoke with another contractor who said they will be forced to park up at the weekend if things don’t change drastically.”
Compounding the problem for contractors like Mr Friel is that farmers do not always have the money to pay up front.
“Ninety nine per cent of farmers don’t pay us until they get their Single Farm Payment, which means that in turn I may not be paid for six to eight months. That’s not in every case but in some instances.”
At an emergency meeting earlier this week the Cabinet agreed to cut excise duty by 20 cent per litre on petrol and 15 cent on diesel. A two cent cut per litre on green diesel was also agreed. The changes will remain in place until August 31 at the latest at a cost of €320 million. But, Mr Friel said the measure in relation to green diesel falls far short of reality.
“It’s not enough. The government is trying to come up with incentives to diversify crops due to what is going on in Ukraine, but none of this can be done without diesel. The cost of fertiliser has more than doubled from €290 a ton to €700 a ton. Twenty litres of round-up spray was previously between €85 and €95. Today that price is €200.
“I think the government needs to focus on getting rid of carbon taxes.”
Minister Charlie McConalogue says a national effort is required to get through the crisis created by Russia’s invasion of Ukraine.
Meanwhile, Agriculture Minister Charlie McConalogue said an additional national effort will be required in the coming months to respond to the Ukraine crisis. He said Russia and Ukraine together make up about 30 per cent of internationally traded and exported grains, and approximately 20 per cent of fertiliser used by Irish farmers comes from Russia. He said supply challenges can be expected over the next number of months and year.
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