Retailers accused of holding pork providers to ransom over recall

SOME retailers were accused yesterday of holding suppliers and processors to ransom following last month’s pork product recall.

The reported action of some retailers in seeking “disproportionate compensation” from pork suppliers for losses incurred during the product recall was sharply criticised.

Fine Gael agriculture and food spokesman, Michael Creed TD, said the reports suggested some retailers were invoicing suppliers for loss of profit as well as the cost price of product recalled.

“This practice of holding pork suppliers and processors to ransom for sums of money, which they cannot be held responsible for, is nothing short of exploitation on the retailers’ behalf,” he said.

Mr Creed said the pork recall was a great misfortune for producers, processors, retailers and taxpayers.

“However, revelations that retailers have been seeking compensation for loss of profits as well as other miscellaneous costs from processors is a most regrettable development,” he said.

Mr Creed said processors, particularly smaller operators, had been hit hard by the dioxin crisis.

“Any move by retailers to further exert a financial burden on the sector could prove fatal.

“Retailers must realise it is in the best interests of the food industry as a whole to preserve what is now a very fragile pork sector in Ireland,” he said.

Meanwhile, the Oireachtas Joint Committee on Agriculture will hold the second in a series of meetings today on the dioxin crisis.

The committee was told at its first session last week that 64 payments totalling about €35.4 million had so far been paid to processors who suffered losses as a result of the recall.

Tom Moran, secretary general of the Department of Agriculture, Fisheries and Food, made a submission to the committee, which will issue its findings following completion of the process.

Members will hear today from John O’Brien, chief executive, and Alan Reilly, director of the Food and Science Standards, Food Safety Authority of Ireland, and from Claudia Heppner of the European Food Safety Authority.

Committee chairman, Johnny Brady TD, said last week’s meeting was a useful opportunity to establish the up-to-date picture regarding progress in the sector since the contamination and allowed members to consider the efficacy of the official response to the crisis.

Agriculture Minister Brendan Smith is among those due to make submissions.