Specific Details
Retailers using Agricultural Produce as Loss Leaders
Intended results
To highlight that it's now clear that across the horticulture, poultry and pigs sectors, retailers are using food as a loss leader. In recent weeks Lidl has even used organic produce as a loss leader.
To highlight to retailers that farmers in these sectors are united and determined. The retailers must go back to their suppliers and sit down with them to agree a pricing structure which ensures the economic sustainability of farmers and growers
To highlight that the Government's inaction on retail legislation to introduce the long-promised Food Ombudsman has left farmers without any power in the food chain. Every link in the food chain deserves to have its cost recognised and an ability to recoup these costs, or the Irish food production system will fail.
To highlight the challenges facing the Potato, Horticulture, Pig and Poultry sectors, including spiralling production costs and ever-tightening margins as a result of the dominant position of a small number of retailers.
To highlight that the Government must stop below cost selling and implement this into Irish law, which in turn needs to be stringently regulated by the new Food Regulator Office.
To highlight that retail price compression has forced many producers out of business and many more will be forced out of business if the imbalance in pricing power in the supply chain is not addressed. The price compression is due to significant competition from imports, and the growing concentration and inordinate market power of a small number of very powerful retailers.
To highlight that There is a strong need for a significant rebalancing of power in the food supply chain, to deliver a price for primary producers that would ensure their future viability. The powers given to the National Food Ombudsman should include
• Full powers of investigation of margins in the various components of the food supply chain. A ‘retail charter' should be signed up to by all retailers that would guarantee primary producers a certain margin above the cost of production. If retailers were not willing to sign up to such a charter, then it should become part of the regulatory environment.
• The tendering process must be changed in order to give certainty to primary producers and enable them to deal with the impact of unpredictable seasonality on food production.
• Retailers should not be allowed put their supply up for tender every year, as this causes unsustainable uncertainty for primary producers. The regulator should have the power to examine tenders to ensure that primary producers are paid a fair price.
• It must have regulatory oversight on labelling to ensure that mislabelling that confuses the provenance of product is not allowed happen. –
• A ban on below-cost selling must be introduced. It's rarely in the best interests of the market to have a considerable level of regulatory intervention, but if market failure occurs, then it is necessary.
Jackie Cahill
TD (Dáil Éireann, the Oireachtas)
Martin Browne
TD (Dáil Éireann, the Oireachtas)
Matt Carthy
TD (Dáil Éireann, the Oireachtas)
Michael Collins
TD (Dáil Éireann, the Oireachtas)
Michael Fitzmaurice
TD (Dáil Éireann, the Oireachtas)
Joe Flaherty
TD (Dáil Éireann, the Oireachtas)
Paul Kehoe
TD (Dáil Éireann, the Oireachtas)
Brian Leddin
TD (Dáil Éireann, the Oireachtas)
Michael Ring
TD (Dáil Éireann, the Oireachtas)
Victor Boyhan
Senator (Seanad)
Lynn Boylan
Senator (Seanad)
Paul Daly
Senator (Seanad)
Tim Lombard
Senator (Seanad)
Denis O'Donovan
Senator (Seanad)
Barry Andrews
MEP (European Parliament)
Billy Kelleher
MEP (European Parliament)
Chris MacManus
MEP (European Parliament)
Ciarán Cuffe
MEP (European Parliament)
Clare Daly
MEP (European Parliament)
Colm Markey
MEP (European Parliament)
Deirdre Clune
MEP (European Parliament)
Frances Fitzgerald
MEP (European Parliament)
Grace O'Sullivan
MEP (European Parliament)
Luke Ming Flanagan
MEP (European Parliament)
Maria Walsh
MEP (European Parliament)
Mick Wallace
MEP (European Parliament)
Seán Kelly
MEP (European Parliament)