Irish growers ‘will not be squeezed in price war’
IFA field vegetable coordinator PJ Jones accused the two retailers of destabilising the market for Irish vegetables and potatoes.
He said they were engaging in a reckless campaign of below-cost selling, targeting fresh produce, where growers are vulnerable.
Mr Jones said Lidl cut the price of fruit and vegetables by 50% in their five Dublin stores for a day last week.
Yesterday, Tesco retaliated by making a similar one-day reduction across their stores nationwide. Lidl matched their prices for the day.
Mr Jones said both retailers have so far covered the cost of these campaigns.
But the IFA wanted to make it clear that Irish growers are in no position to fund these campaigns by taking cuts in their already low margins.
“The number of growers has fallen sharply in recent years and the remaining growers have invested heavily to increase quality.
“If growers are forced to produce below the cost of production, then the days of quality Irish produce on our shelves will be limited,” Mr Jones said.
