IFA in warning over below cost selling on groceries
That’s according to the Irish Farmers Association, which says it will guarantee value and choice for consumers, and secure a fair price for producers.
It has also called for a study of the food chain to identify profit margins in each and an analysis of detailed costings of doing business in Ireland.
It has made a submission supporting retention of the Groceries Order to the Department of Enterprise, Trade and Employment. Public consultation on the Order closed last evening.
President John Dillon said food must always be a high national priority.
“It is inconceivable that food items such as bread, milk or meat could be offered free with petrol at filling stations as a promotion and loss leaders to encourage the sale of petrol,” he said.
Mr Dillon said the Irish retail sector has changed fundamentally since the Order was introduced.
“We have seen greater concentration of power among a small number of retailers, the introduction of central distribution and the increasing prevalence of 24/7 shopping leading to fewer food processors and suppliers earning much tighter margins.
“Farmers, the primary producers of food, have seen their numbers and their incomes fall drastically due to lower farm gate prices and increased production costs,” he said.
Mr Dillon said legislation could play a much greater part in ensuring that primary producers are paid a fair price for their produce while consumers get the choice of purchasing good value and high quality Irish food products.
The IFA said it also wants to bring all fresh produce into the remit of the order which protects suppliers and smaller retailers against predatory pricing practices by large retailers.
This will ensure the survival of Irish growers and keep consumers happy.
“As fresh produce is not covered under this order, these products are regularly discounted by retailers at prices that are well below the cost of production in battles to increase market share,” he said.
“While this is portrayed as offering ‘value’ to the consumer, in the long term such practices will force Irish producers out of business, consumers will become dependent on imported fresh produce and exposed to greater price manipulation by retailers.”
