Big multiples to hold sway in new laws

PRIMARY food producers will still remain vulnerable to the whims of the supermarket multiples even in the wake of the proposed new retail legislation, a Galway farm leader claimed this week.

Co. Galway IFA Chairman, Pat Murphy, said that the two basic planks of the new legislation sought by the IFA and primary producers had been omitted from Richard Bruton’s proposals.

“We wanted a ban on below cost selling, and the appointment of an ombudsman essentially to regulate this whole area, but it seems that we’ve got neither in the proposed legislation,” said Pat Murphy.

He said that what happened last Christmas with a supermarket chain practically giving away fruit and vegetables for nothing could quite easily be tried on again with beef, lamb or dairy produce.

“The argument might be put forward by the supermarkets that they take the hit for this below cost selling but at the end of the day the primary producer will be pressurised to take a cut too.

“The problem with all of this is that if the primary producer is squeezed out of the market place – and often these are local farmers – then our food will end up being imported. This is not the way to go either for the producer or the consumer,” said Pat Murphy.

Earlier this year, IFA President Eddie Downey, said that tthe Government’s draft Competition and Consumer Protection Bill would do absolutely nothing to protect vulnerable farmers and suppliers.

He warned that it had to be strengthened significantly to stamp out abuses by retailers and to give greater bargaining power to primary producers and small suppliers.

“The proposed Bill fails to square up to the power of the retailers. Unless the Government moves to substantially strengthen the Bill, it will represent a waste of time and IFA will have no option but to withdraw our support for the legislation”

“The draft legislation as it stands will not stop the outrageous 5c/kg below cost selling that seriously destabilised the Irish vegetable sector last Christmas. Neither is there provision for an independent Ombudsman to investigate complaints and oversee the behaviour of retailers as regards the grocery trade”.

“Enterprise Minister Richard Bruton’s Bill falls far short of what is required to rebalance power in the food supply chain and to stop unfair trading practices by the large retail multiples. The Minister must stop paying lip service to the real concerns of suppliers.”

For more, read this week’s Connacht Tribune.