Fears price war will hurt vegetable growers

VEGETABLE growers could be forced out of business, if a price-cutting war erupts between the country’s supermarket chains, the Irish Farmers Association warned yesterday.

Superquinn earlier announced a pricing for vegetables this weekend which includes a bundled offer of four items for one euro from a selection of a cabbage, a turnip, 1kg of carrots or 1kg of onions, and 80% off new season Irish cooking apples.

But the IFA fresh produce co-ordinator PJ Jones said the decision by the retail chain to discount key vegetable lines by between 50% and 75% for two weeks is a “senseless marketing gimmick”. Farmers fear it will lead to large-scale instability and grower losses in the industry.

Mr Jones said once again home-grown fresh produce had been targeted by a retailer as a loss leader in an effort to win market share over its competitors. It was a reckless move by Superquinn to sell vegetables at far below the cost of production.

“The fear among the country’s 200 vegetable producers is that this will kick start a damaging price war, that could drive farmers out of business.

“Growers have invested substantially in recent years to meet ever increasing retail standards.

“However, many are now questioning the sense of staying in an industry where they go from week to week fearing further cuts in their returns and possible bankruptcy.” Mr Jones said fresh produce can easily be targeted by powerful retailers like Superquinn for below-cost selling as it is not covered under the Groceries Order.

“Farmers are price takers and have no choice with fresh produce but to accept lower returns as bank loans and bills still have to be paid.

“Superquinn is only conning consumers with this loss leader against a vulnerable sector. The end result could be to force local Irish growers out of business, while imported vegetables take over on the shelves,” he said.

Superquinn deputy chairman Eamonn Quinn explained, however, that the company expects its customers to have more Irish vegetable produce on their tables than ever.

He said quality fresh food is at the heart of Superquinn’s offer to customers. It had always purchased and promoted Irish produce and will continue to do so.

“We are very proud of our relationships with Irish growers which we openly promote in our shops every day.”

Mr Quinn said this weekend’s offer is all about increasing the volume of produce sold and reminding customers just how good Irish fruit and vegetables are.

“It is something that we are doing from our budgets. Our growers are not funding it and they are very happy with the prices we have agreed with them,” he said.