The president of the Irish Creamery Milk Suppliers Association (ICMSA), Pat O'Rourke, has said today's Forfas Report on inflation confirmed the high cost of food generally in Ireland.
He said the Tanaiste should carry out an in-depth study to the cause of high food prices.
He also said he was confident that the Groceries Order would be found to be a valuable protection for consumers, processors and farmers.
Mr O'Rourke said his organisation highlighted last year the low and declining share of the food spend which goes to farmers. He said it was obvious that the retailer and others were taking an unjustified profit.
Ireland is likely to become the most expensive country in the eurozone this year, according to the report from the policy advisory board.
Its Consumer Pricing Report finds that Ireland's overall consumer price level is 12% above the eurozone average. Last year, Finland was the most expensive country in the eurozone.
The Forfás Consumer Pricing Report benchmarks prices in Ireland with the European partners. It finds that in 2002 the non-traded sector and goods and services subject to Government policy were the biggest drivers of inflation.
Pubs and restaurants accounted for nearly 30% of the increases in the year to January.
Ireland was also the most expensive country when it came to buying food in supermarkets.
To accompany the report, the National Competitiveness Council has issued a Statement on Inflation.
It calls on the Government to reduce the rate of inflation by avoiding increases in indirect taxes and charges for services like education and health insurance where Government decisions have an impact.
Increases in Government related charges account for around 2% of the present 4.3% inflation rate.
