Fine Gael TD for Wicklow/East Carlow and Chair of the Oireachtas Committee on Agriculture, Andrew Doyle, has today (Wednesday) has highlighted the pressure that farmers are coming under as a result of the aggressive price wars that supermarkets are engaging in.
“At present we are dealing with a very aggressive vegetable price war which has put considerable pressure on vegetable growers around the country, exposing the producer as they are reliant on only one retailer.
“The agri-food sector in Ireland contributes €24 billion to the national economy, accounts for 10% of exports, but at a domestic level our fruit and vegetable suppliers are being driven out of business. More recently, the dominant large multipliers have adopted a very aggressive attitude to Irish fruit and vegetable growers. Pressure is applied on local producers causing them to sell their product at a loss.
“The Grocery Report published by the Oireachtas Committee on Agriculture calls for the introduction and swift implementation of a statutory code of conduct in the groceries good section. It also proposes the creation of an independent supermarket Ombudsman to represent the consumer, primary producer or third party and over the application of a standard code of conduct.
“In addition, the Committee recommended that all multiple suppliers or retailers in the State maintain a statement in writing detailing the terms and conditions upon which they purchase from or supply grocery goods to each grocery. It was also considered that there is urgent need for greater transparency with regard to information published by large retailers and legislation introduced to force the publication of profits of multiples and large processors operating in this country.
“An integral part of the report recommended that multiples continue to work closely in their community and maintain a strong link with local produce. In light of the proposed CAP reform regarding producer groups, any obstacles that prevent these groups from negotiating in an organised way should be removed.
“The Joint Committee is anxious that the statutory code gets into the Consumer and Competition Bill, and that an independent supermarket Ombudsman should be established to oversee the application of the code of conduct.
“We have fair trade signs coming in for products such as chocolate, coffee and bananas from across the world. A similar quality control system could be created for domestic products which should be developed alongside a statutory code in the future.”
