Code of practice aims to regulate power of supermarket multiples

A NEW code of practice will be introduced on a voluntary basis within weeks to regulate the increasing concentration of power of the supermarket multiples. It will become statutory under new legislation to be moved by Tánaiste Mary Coughlan.

Agriculture, Fisheries and Food Minister Brendan Smith confirmed the move at the Irish Farmers Association annual general meeting in Dublin yesterday. The IFA earlier urged the Government to establish a statutory supermarket code of practice with an independent Ombudsman office. It said it had already proposed such a move in response to a consultation request by the Tánaiste.

John Bryan, newly elected IFA president, who repeated the call at the AGM, said politicians at home and in Europe must rebalance the food marketing chain to ensure that farm families can get a viable income from the marketplace. He said the Government must introduce and enforce this code and it must also work to secure effective legislation in Europe.

Mr Bryan was speaking after the British Government announced it will appoint an independent Ombudsman to arbitrate disputes between food producers and the supermarkets they supply. The large British supermarket chains have long lobbied against an Ombudsman, arguing that it would cost the industry millions and lead to higher prices for consumers.

Mr Smith, addressing the IFA meeting, said a requirement that primary producers get a fair price for their product is central to a recovery in incomes.

Mr Smith said the increasing concentration of retail power in the hands of a few large supermarket chains is an international phenomenon. It has fundamentally changed the balance of market negotiating power in the food chain and is a key factor behind the declining share of retail prices which is passed back to producers. “I have met the major multiples and made my views known to them and have emphasised the need to support Irish producers and to ensure that those producers are paid a fair price for their high-quality produce.”

Mr Smith said the need to strike a balance between the demands of consumers for cheaper food and the need to ensure a fair return to suppliers and producers should not be done at the expense of a viable European agri-food sector.