IFA: Supermarket price war will cost thousands of jobs

A SUPERMARKET price war will cost thousands of farming and food processing jobs, the Government has been warned.

Irish Farmers’ Association president Padraig Walshe said there is huge pressure on farm incomes as a result of the supermarket war between Tesco, Dunnes and Supervalu in their race to the bottom on food prices.

He said a protest by hundreds of farmers outside a Musgrave distribution centre in Kilcock, Co Kildare, yesterday reflected their deep anger and frustration over collapsing incomes.

This was as a result of the dominant position of the supermarket multiples in the food supply chain, and the uncompetitive business environment.

“This retail price war is already impacting negatively on farm incomes, and unless the Government takes immediate action to improve competitiveness, it will lead to the loss of thousands of jobs in the Irish food processing sector.

“The supermarket bosses would have consumers believe that the reductions are coming from the supermarkets’ own bottom line. They’re fooling nobody.

“The reality is that it’s off the backs of Irish farmers and Irish jobs,” he said.

Mr Walshe said Supervalu boasts about ‘real food, real people’ but they must start caring about the real people producing the food. Dunnes Stores say ‘the difference is we’re Irish’. Yet many of their food products are sourced outside the State.

The IFA leader said it was time to close down the National Consumer Agency (NCA), which takes an all too simplistic view of retail price wars that are geared only at delivering more profits for supermarkets and undermining thousands of jobs in the economy.

He said the NCA is encouraging and applauding the pillaging of Irish jobs and farm incomes by the retail multiples. It makes no mention or allowance for quality, economic activity or employment.

“Neither is there any recognition of the devastating social consequences of profiteering by the retailers on jobs and communities.”

Mr Walshe said the Government must immediately challenge the retail sector and their multi-million euro profits. “We must have a retail code of practice and a supermarket ombudsman. The code must include a ban on below-cost selling of food and ensure there is equity and transparency in the share out of the consumer.”

A spokesperson for Musgrave said they were “surprised” by yesterday’s protest in Kilcock. “Musgrave representatives recently met with Padraig Walshe, president of the IFA, and his colleague Pat Smith, the general secretary and CEO.

“These discussions are ongoing, with Musgrave as ever operating an open-door policy with farming representatives.

“In this difficult economic climate, when consumers are finding it particularly tough, Musgrave has made a commitment to Irish consumers to bring prices down, while continuing its support of Irish produce, Irish suppliers and Irish jobs. We are also supporting our retailers by investing in excess of €200 million in long-term price cuts, offers and promotions.”