Supermarkets told face up to responsibilities

LARGE supermarket chains were reminded yesterday that they have a responsibility to the communities in which they operate.

Agriculture Minister Brendan Smith said that responsibility certainly extends to their consumers and shareholders. But it must also extend to producers, processors and suppliers. He told the International Federation of Agriculture Producers’ Commodities Conference in Dublin that retailers must strike a balance between value for consumers and a fair return to suppliers and producers.

“But this cannot be done at the expense of a viable agri-food sector, such as we are fortunate enough to have in this country,” he said.

Minister Smith said the concentration at retail level has fundamentally changed the balance of market negotiating power in the food chain, and is one factor behind the declining share of retail prices passed to agricultural producers.

He and his officials have been working closely with Tánaiste Mary Coughlan and her department on the details of a code of practice to achieve a balance in the relationship within the retail trade.

EU Agriculture Commissioner, Marianne Fischer Boel, has undertaken to complete reviews of anti-competitive practices and of the retail sector and report back to the Council of Agriculture Ministers by the end of the year.

Minister Smith said the Irish agri-food sector, which supported, directly and indirectly, 230,000 jobs, had the potential to accelerate the country’s economic recovery.

IFAP president Ajay Vashee said the world economic downturn and lack of confidence is seriously restricting investment in agriculture and food production, which will result in major food worldwide shortages unless addressed immediately.

IFA president Padraig Walshe called on all governments to put the necessary structures in place that encourage capital availability for investment in the agri-food sector.