IFA: ‘Hello money’ must be stamped out in new retail code of practice

“HELLO money”, profiteering and strong arm tactics by retailers must be stamped out by any new code of practice for the Irish retail sector, says IFA president Padraig Walshe.

The Irish Farmers Association president also insisted that the proposed code be statutory, and that an ombudsman must accompany the eventual roll-out of the new regulations. The other farming organisations have also rejected the notion that adherence to the code could be voluntary, adding that the process did not reflect the urgent plight in which food suppliers currently find themselves.

Fine Gael agriculture spokesman Michael Creed said that over €160 million of illegal “hello money” has been paid to retail chains by farmers to get their produce stocked in Irish supermarkets.

IFA president Padraig Walshe explains: “We have had instances where our members have told us about the “hello money” they’ve paid to retailers, but they won’t speak about it publicly. They’re afraid that they will be delisted from supermarket shelves if they speak out.

“Retailers are exerting a lot of power over suppliers. Take milk, for example. The Irish farmer is getting 24c a litre, the same price as in 1983. The farmer has to meet the highest possible environmental standards, and the animals have to have winter housing.

“The processor gets 41c, that’s double what the farmer gets even though he hasn’t half the overhead costs. The grocer has even less costs and he gets 30c of the total 95c the consumer pays for the litre.

“It’s even worse with beef, where prices paid to farmers are at 1990s levels, but the consumer has not seen any of the reductions. The retailers have a licence to print money.”

Wednesday was the deadline for submissions of views on the proposed code of practice to the Department of Enterprise, Trade and Employment. The Irish Examiner contacted IBEC’s Retail Ireland office, but no spokesperson was available to comment.

Padraig Walshe said retail concentration in Ireland is extremely high, with three retail retailers – Tesco, Dunnes and SuperValu/Centra – controlling over 70% of the grocery market.