Primary producers are losing out in retail price war, claims Bryan

THE retail price war is being fought at the expense of primary producers, the Irish Farmers Association claimed yesterday.

John Bryan, president, was commenting on reports of major expansion plans and profits by supermarkets.

He said 10% net margins and multi-million euro expansion plans will anger the farming community.

Last year farmers lost money on food production and families had to depend totally on their single farm payment support for an average income of only €13,000.

He questioned the wisdom of local authorities giving permission for more retail developments when there is already serious overcapacity countrywide.

Many small shops and convenience stores are struggling to compete as the multiples dominate and expand unabated, he said.

Mr Bryan said the Government and the European Commission must accelerate their plans to regulate the sector as the multiples are sapping every euro of profit out of the supply chain.

“Farm families can no longer afford or tolerate this behaviour,” said the IFA president, who will appear before the Joint Oireachtas Committee on Enterprise, Trade and Innovation next Tuesday.

The difficulties for farmers in the food supply chain and IFA’s proposals for a Code of Practice for the supermarkets will be discussed at the meeting.

Musgrave has meanwhile said it made a significant contribution to the Irish economy and Irish suppliers last year, with 75% of all products purchased on behalf of all its retail partners either produced or manufactured in Ireland.

“This represents a commitment of more than €2.6 billion to Irish suppliers, supporting more than 600 Irish supplier companies and over 10,000 jobs indirectly.

“Last year, Musgrave invested €230 million in long-term price reductions for shoppers on everyday products and brands.

“This was delivered without sacrificing its commitment to Irish suppliers and Irish jobs,” the group said.

SuperValu has, meanwhile, announced it will account for €8.5m worth of Irish spring lamb this year. New season Irish spring lamb is now available across its 193 stores in the Republic.

Category manager Ian Allen said it listens to what the Irish consumer wants and knows that, given the choice, people want to buy Irish.

“This year, SuperValu will account for €20m in lamb sales, showing that consumers are opting for top quality Irish food, which we believe is the best in the world,” he said.