Ahead of the publication of a report recently by the Oireachtas Committee on Agriculture into a Code of Practice for the retail sector, IFA President John Bryan welcomed its contents and said the Government must act immediately on the Committee’s recommendations.
The Report recommends that a statutory Code, not a voluntary one, should be implemented without delay; an independent ombudsman to oversee the application of the Code should be appointed and there should be legislation to force the multiples and large processors to publish their profits.
The IFA President welcomed the Committee’s ‘serious concerns that the current imbalance of power between suppliers and retailers is unsustainable in the long term and that the family farm structure and primary producers are being squeezed out of the market’. The Committee also ‘considers that in many respects primary producers are not getting fair treatment in the food supply chain, nor a fair price for their goods’.
John Bryan said, “IFA has campaigned for a long time for effective and robust regulation, and the Government must now confirm that legislation incorporating the Committee’s regulations is on the way. It must restore equity to the food supply chain and curb the dominance of the retail multiples. The latest figures show the major multiples control over 80% of the grocery market”.
IFA Liquid Milk Chairman Teddy Cashman said, “The Members of the Oireachtas Committee have clearly given the liquid milk market a great deal of thought in preparing this report. I believe their recommendation for Governmental talks on an all-Ireland liquid milk market can only succeed if viable payments are secured which cover the costs incurred by specialist milk producers North and South, and allow them to pay themselves a reasonable wage.”
John Bryan said, “The Report supports IFA’s contention that retail multiples are over dominant in the food supply chain and are engaged in unfair and predatory pricing practices, which are impacting very negatively on the viability of primary producers. Strong and effective legislation, both at national and EU level, is needed to ensure producers are paid a fair price which reflects production costs and leaves an acceptable margin.”