Supermarkets 'forcing farmers out of business'

Farmers are being forced out of business by greedy supermarket chains who pay them minimum prices for their produce, it was claimed today.

Fine Gael also said the traditional quality of Irish food will suffer if producers don’t get a better return for their goods.

The party today launched its ‘A Fair Deal for Consumers, A Fair Price for Producers’ policy document at Tullamore Show.

Agriculture and food spokesperson Denis Naughten said his proposals would improve the current position of Ireland’s food industry for consumers, farmers and retailers.

“Large retailers are making huge profits from the Irish market at the expense of both consumers and producers with the consequence that quality Irish food is being undermined and farmers are at risk of going out of business,” he explained.

“We must not allow our farmers to be forced out of existence by large multiples always seeking a lower bottom line from farmers, while they, at the same time, handsomely increase their own margins at the expense of farmers and consumers.

“The latest Fine Gael rip-off survey last month showed that consumers are paying mark-ups of over 200% on basic foodstuffs in our major supermarkets, while farmers continue to endure falling prices for their produce.”

Fine Gael has called for:

:: reform of the Irish food labelling regime and the introduction of a Green Ireland (“guaranteed Irish”) label

:: a single high-level food promotion body

:: incentives to encourage the formation of producer groups in order to more efficiently match Irish food production to its markets.

The Athlone TD said that consumers were prepared to pay a reasonable price for food products provided that they are produced to a high standard.

“Fine Gael believes that a balance can be struck between the interests of farmers and consumers, and the wider business community,” said Mr Naughten.

“The future of our agri-food industry is the future of rural Ireland.

“The agricultural economy is the lifeblood of towns and villages the length and breadth of the country and by placing it in jeopardy we risk condemning the Irish countryside to desolation.

“Retailers must work with farmers to ensure that consumers are not exploited by perceived value but instead protected by safety-assured quality products.”