IFA calls for code of practice to regulate retail food sector

A CODE of practice for the regulation of the retail food sector to ensure an equitable share for farmers in final retail prices was sought by the Irish Farmers Association yesterday.

IFA president Padraig Walshe said a 2007 report by the Department of Food Business and Development in UCC, identified a huge and widening discrepancy between producer and retail prices. As a result, producers were being forced to produce below the cost of production.

“If this is not addressed, by way of a code of practice, we will end up with less food produced within Europe and thereby more dependent on unregulated imports,” he said.

Mr Walshe told the Oireachtas Committee on Enterprise that food labelling is a key issue to be addressed for producers. This surfaced again during the pork product recall. He said “substantial transformation” is another sham being used to disguise imports. Imported meat, of lower standards, is covered in breadcrumbs, spices or sauces and called “Product of Ireland”.

Mr Walshe said the 2006 partnership agreement includes a commitment on the extension of country of origin labelling to the pigmeat, poultry and lamb sectors. He also claimed producers and suppliers are so fearful of the power supermarkets wield, that they are scared into silence and submission, lest they be delisted at the whim of a buyer.

“Over the last number of decades, increases in the cost of living have far outpaced increases in the cost of food.

“Since 1995, the cost of living has increased by 51%, while the cost of food and non-alcoholic beverages in the consumer basket has increased by only 41%.

“Overall, food costs as a proportion of consumer income has fallen. As a result, while in 1995, the average consumer-spend was 16% of personal income on food, today this figure is closer to 7%.

“While consumers have been benefiting from higher incomes and lower food prices, farmers have experienced a fall in income. In real terms, farmers have experienced a fall of 35% of income since 1995,” he said.