Allow farmers exemption, says ICMSA

A farm leader claimed yesterday that the Competition Authority is acting unjustly against legitimate joint farmer action in a way that was never intended by the legislation.

ICMSA president Pat O’Rourke said it is time to provide exemption under the Competition Act for farm organisations for any collective action taken on behalf of their members with regard to price and supply of farm inputs including services and the price and supply of farm outputs.

Furthermore, there should be indemnification under law for such actions by a farm organisation.

“What I am seeking for farm organisations is no more than what has been enjoyed by the trade union movement for 100 years,” he said.

Mr O’Rourke, speaking at the ICMSA AGM in Limerick, said that during the year the association had highlighted the enormous gap between farm gate prices and what the consumer pays. This gap has increased over time.

He said he was delighted with the support it had received from the Consumer Association of Ireland.

“Given this major concern from farmers and consumers, the Tánaiste should take action and instruct the Competition Authority to carry out a detailed examination on the totally unjustified margins being taken by the grocery retailing sector.

“The power of large food retailers has grown enormously and we have experience of the enormous pressure they can exert on farmer and processor suppliers.

“If this power cannot be reduced, it must be made more accountable by more information being available to farmers, the food processing sector and consumers,” he said.

Agriculture and Food Minister Joe Walsh told the conference that the dairy veterinary certificate system will not be changed.

He said the system which was put in place in Ireland to meet this aspect of the EU Hygiene Directive, was a simple one in which the producer sought a certificate from his veterinary practitioner and lodged this with the purchasing co-operative.

Central to the system was the relationship between the farmer and his vet. The system was simple and worked extremely well for the first period.

“It is not my intention to change this system and let me say that under no circumstances will the system be amended to include central payment,” he said.

Mr Walsh said that there is a need for the system to be put back on a working basis without delay. It is a certification system which must be worked out between the farmer and his vet at local level and there can be no hope that it will become other than that.

“Every effort should be made to have the certificates provided at farm level. It provides the best value for money,” he said.