Farmers are not being ripped off by supermarkets, which have imposed new market realities and were keeping down inflation, the Minister for Finance said yesterday.
Mr McCreevy told the conference that food producers would have to live with what he termed the new market realities by becoming more cost-efficient.
"Multiples are now making a price and they expect that to be maintained for at least two years. The day of going back to look for more money because of rising costs are over," he said.
Mr McCreevy said this was not only relevant to the food industry, but to all industries, and not just to Ireland but globally.
He said an Irish Farmers' Association report published on Wednesday accusing the supermarkets of making big profits at the expense of farmers reflected the new situation. Suppliers were now at the mercy of the retail outlets, which could dictate food prices. He said the main benefit of what was happening was lower inflation rates despite international currency movements, and this could be explained by the activities of the multiples.
The new conditions also benefited the consumer. Producers could survive by reducing their production costs. He accepted the new market conditions might also contribute to unemployment levels, but their main impact was to keep inflation rates down.
Earlier, the Minister told the conference that measures aimed at maintaining and enhancing the quality of the environment would be reinforced and extended.
"With respect to better integration of environment and market support measures, the attachment of environmental conditions to the payment of livestock premia and area based payments may well be a feature of future policy," he said.
Farmers were warned of the security implications of buying equipment from unofficial traders, which a farm leader said could contribute to rural crime.
Mr Peter Byrne, the outgoing president of the Agricultural Science Association, said there was a perception that information on vulnerable people was being gathered in this way.
"The information on these people has to be coming from somewhere," he added. "I do not want to condemn all traders because there are many decent ones but at the very least farmers should support their local traders and keep jobs in the area," he said.