Éamon Ó Cuív (Galway West, Fianna Fail)
39. To ask the Minister for Agriculture, Food and the Marine the steps he has taken to avoid a situation similar to last year where supermarkets significantly discounted vegetable prices below their production costs in the run up to Christmas and did significant damage to the horticulture industry; and if he will make a statement on the matter.
Simon Coveney (Minister, Department of Agriculture, the Marine and Food; Cork South Central, Fine Gael)
Total value of production at farm gate level of Irish fruit, vegetables and potatoes was estimated at €433 million in 2013. Of this, over €300m is marketed through Irish supermarkets. The rest is exported (principally mushrooms) or is marketed through smaller retail outlets or the catering trade. According to Bord Bia, fresh fruit and vegetables are the 2 largest categories within the grocery trade at a combined total of 14.5% of turnover. Therefore, the proper marketing of these products is of significant importance to the producer, supermarket and consumer alike.
I, therefore, share the Deputy’s concern regarding the marketing of fruit and vegetables in a number of supermarket chains in December 2013. Following on from those events, my colleague Mr. Tom Hayes, Minister of State with responsibility for Horticulture, invited the supermarkets individually to meet him to discuss this and the wider issue of promoting Irish horticultural products. At these meetings, in which most of the supermarkets participated, the Minister was assured that none of them would initiate a similar promotional campaign coming up to Christmas 2014.
As you are also aware, during the course of this year, the Department of Jobs, Enterprise and Innovation introduced the new Competition and Consumer Protection Act (No 29 of 2014). The Competition and Consumer Protection Commission came into existence on 31 October. The Act also allows for the making of provisions for regulating certain practices in the grocery goods sector. This, I hope, will guide the supermarkets in how they deal with producers in a fair and reasonable manner.
Whilst it is not my role to set supermarket prices for agricultural products, I very much encourage greater co-operation and discussion between all parties in order to ensure the viability of the largest number of Irish growers possible.
Source: KildareStreet – Horticulture in the Dail – Fruit & Vegetable Prices
