Irish farmer leader attacks ‘unscrupulous’ markets

Leading supermarkets have been accused of being “predatory” and “unscrupulous” in their dealings with farmers, using their strength to drive down prices while maintaining profits.

Addressing the Irish Farmers’ Association annual meeting in Dublin, IFA president Padraig Walshe told delegates that he was launching a “campaign for honesty” in food pricing.

Loss leader

“We will target supermarkets’ use of food as a loss leader and expose the exploitation of producers when they are bullied into special offers at below the cost of production,” he said.

“This unscrupulous, predatory pricing by supermarkets is most extreme in fresh produce and threatens to wipe out our remaining Irish potato, vegetable and fruit growers.”

Mr Walshe said the threat to farmers from supermarkets was on the same scale as climate change and the World Trade Organisation talks.

2 for the price of 1

He pointed out that Dunnes Stores was offering a twin-pack of Denny Ham at €4.40 with no trace of the Origin Ireland logo. “Every producer knows you can’t feed two pigs for the price of one.”

Tesco was selling 10kg of Irish potatoes for €4.99, saving the customer €3.50. “You know who will pick up the cost of this give-away.”

And SuperValu had Irish beef discounted by 33%, while winter finishers were unable to cover their costs.

Marketplace

“Ten kilos of potatoes at half price or two heads of broccoli for the price of one must be outlawed,” said Mr Walsh.

“I am saying to supermarkets that, whatever a farmer produces, there is a basic unit cost that must be recovered from the marketplace.

“The weakness of producers and co-ops is epitomised by their fear of being de-listed should they have the temerity to seek a price increase.”