IFA demands smaller food producers be protected in new retail legislation
As the proposed new Competition and Consumer Protection Bill stands, farmers supplying to companies with a turnover of less than €50m will not be required to have a contract. The IFA says this is a real concern, especially for fresh produce producers.
Following a meeting of IFA’s retail project team, IFA president Eddie Downey also signalled that the right of collective negotiation will be critical to protect small and medium-sized producers, particularly on the terms and conditions of future contracts. He cited the example of livestock producers supplying sheep and cattle to processors with a turnover of over €50m.
Mr Downey said: “IFA believes that the real test of the new legislation will be a fairer return to producers, which covers the cost of production and leaves a margin to reward their work and investment.”
The IFA will also seek further legal clarification on the bill’s failure to include a prohibition on below-cost selling. The IFA is also calling for a provision to put limits on the use of own- brands by retailers, and for retailers to disclose profits.
The farmer group also says the bill has failed to provide for “retention of title” for goods delivered until such time they are paid for. Neither does the bill address the erosion of production prices resulting from the use of tendering rather than contract negotiation for the supply of certain produce, says the IFA.
“The publication of this legislation, which IFA has long campaigned for, is progress and is a first step.
“However, the legislation does not address a number of key issues that IFA has identified as necessary to restore equity to the food supply chain and curb the dominance of the retail multiples. The latest figures released show the three major multiples control over 80% of the grocery market,” said Mr Downey. The IFA stressed the regulations must recognise the role of the primary producer in the chain, especially in the fresh produce sector.
“On the proposed merger of the National Consumer Agency and the Competition Authority into a new authority called the Competition and Consumer Protection Commission, IFA’s position has always been that an independent ombudsman should be appointed by Government to oversee and implement this legislation,” said Mr Downey.
