Empty supermarket shelves 'will become the new norm' if action not taken

"The importance of underpinning our domestic horticulture producers has never been so important, following recent shortages of certain products and the increasing emphasis on food security," IFA president Tim Cullinan said. 

Ireland's largest farming organisation has warned that if action is not taken to support the horticulture sector, empty supermarket shelves "will become the new norm".

"Better supports are needed" for Irish vegetable growers in order "to avoid any more from exiting the sector and leaving the country even more dependent on imports", Irish Farmers' Association (IFA) president Tim Cullinan told the Oireachtas Joint Committee on Agriculture, Food and the Marine this week.

"The importance of underpinning our domestic horticulture producers has never been so important, following recent shortages of certain products and the increasing emphasis on food security," Mr Cullinan said. 

"Many crops can be grown and produced for almost 10 months of the year in Ireland, but only if retailers pay the cost of local sustainable production. 

"Fairness must be returned to what is currently a fundamentally unfair food supply chain."

Consequences

According to the IFA, the consolidation of growers in Ireland "is hugely concerning, which has extended consequences for the whole agricultural sector". 

"The rising cost of production and the dominant position of the retail buyers has resulted in the consolidation of growers over the past decade," Mr Cullinan said. 

"Our growers are being hit from all sides with the added actions of retailers, who are relentlessly pushing down the retail price of their products and embarking on unsustainable discounting campaigns to encourage store footfall. 

"It is not surprising that we have lost key growers from our industry in the past two years."

Retail charter

He said retailers have used fresh produce as "marketing tools to attract consumers into their stores, offering fresh fruit and vegetables at discount prices that very often do not recognise their overall cost of production". 

As part of the horticulture industry forum, Mr Cullinan said the IFA is "in the process of formulating an additional voluntary retail charter". 

"The office of the food regulator does not have statutory powers over financial transactions within the food chain. Accordingly, a voluntary retail charter is essential," he told the committee.

"It will be essential that all players in the supply chain buy into the charter and engage in the process. 

"The price deflation of vegetables has resulted in the decimation of farmers' margins and the decimation of Irish vegetable growers. It cannot be allowed to continue into the future."

Staffing issues

Another key issue for the horticulture sector that Mr Cullinan addressed is staffing issues.

Horticulture is a sector that is "extremely reliant" upon hired staff, especially at harvest time. 

"While the announcement that the minimum wage will increase in Budget 2024 is welcome for society, it will have an enormous financial impact on horticulture producers where up to 50% of variable costs are attributed to staffing," according to Mr Cullinan. 

"While there are always staff supply issues at harvest time, given the seasonal nature of the industry, the problem is now much more widespread throughout the year. 

"If sufficient staffing requirements cannot be maintained at all times, it will lead to food waste at a production level."

He described Ireland as being an "outlier" in Europe because it has no system for granting seasonal employment permits for foreign workers in sectors such as fruit picking.

"A bespoke seasonal work permit scheme for foreign workers must be a priority for the sector, in conjunction with a continuous supply of permits from the general employment scheme," he said.