Organic farms face 40% price cut

FEARS have arisen that the multiple retailers are set to seek price reductions of up to 40% from suppliers in the country’s €140 million organic food sector.

The Irish Organic Farmers and Growers Association (IOFGA) warned that many small suppliers will get into financial difficulty if this is enforced. “No organic producer is making a margin of anything like 40% and the option they face is to supply at a loss or stop dealing with the multiples completely.”

The association, which represents about 1,000 farmers, growers and processors, said there is a real possibility that a large number of Irish-owned small food businesses will be forced to close down or let staff go in such a situation.