IFA will expose supermarkets’ ’exorbitant margins’

THE IFA warned supermarkets yesterday that it will expose what it described as the exorbitant margins they are taking at farmers’ expense for food that is often no more than 24 hours on their shelves.

John Dillon, president, told the IFA agm that it will resist below cost selling and demand the inclusion of potatoes and vegetables in the Groceries’ Order.

He said the IFA will highlight the ongoing margins that supermarkets have on products that they sell versus what farmers get for those products.

Mr Dillon said he was very annoyed to think that the Competition Authority seem more interested on chasing farmers and IFA people rather than the real culprits, who were ripping off consumers with the prices being charged at the checkouts.

“You would think that farmers were driving up prices to consumers, the way the Competition Authority behaves. It ignores the fact that product prices to farmers are lower today than they were 10 years ago, while food prices to consumers have risen by 38%,” he said.

Mr Dillon said farmers haven’t caused inflation. They are the victims of inflation. And the Government has failed to control it.

“The farmer’s share of the consumer price is now down to 30% - €70 out of every €100 spent on the weekly food bill goes to multi-national supermarkets and processors,” he said.

The IFA leader called on the Competition Authority to “take on the big boys with the high margins.”

Mr Dillon also warned processors. “We are struggling with higher costs. There is no way we will allow you to pay for your cost increases by cutting our prices,” he said.