IRELAND-FARMERS UP IN ARMS AGAIN OVER SUPERMARKETS.
Speaking after the announcement that the supermarket chain Tesco had made profits of £3.1 billion the farmers said they were concerned that the supermarket action would drive family farmers out of business and will ultimately lead to a breakdown of the European food supply chain.
Commenting after the announcement by the Tesco Group of £3.1bn stg profits, IFA President Padraig Walshe said the race to the bottom strategy being relentlessly pursued by the supermarket multiples in their grab for ever more profit is driving family farms out of business and will ultimately lead to a breakdown in the European food supply chain.
Irish Farmers’ Association President Padraig Walshe said: "Consumers realise all too well the hands off regulation of the banking sector led to a meltdown of the financial system.
"Failure to bring the supermarkets under control is putting the European model of family farming at risk, with serious long-term implications for our food supply chain and consumers."
Mr Walshe said the giant supermarket chains are out of control in terms of their relentless pursuit of profit through market share and unsustainable downward price pressure.
"This policy is having a devastating impact on the viability of farmers and threatening thousands of Irish jobs in the agri food/processing sector."
Mr Walshe said supermarkets needed to pay farmers and suppliers a fair price for the key staple food items such as meat, milk, bread and vegetables.
"All of these essential food items are being abused by supermarkets as loss leaders in their quest for market share."
Mr Walshe said more and more farmers are being asked to produce at below the cost of production. Despite substantial investment, Irish potato, vegetable and fruit growers are being driven to extinction with consumers left dependent on imports for supplies.
Livestock, dairy and tillage farmers are producing beef, lamb, milk and grain at below the cost of production this year. Consumers are being misled regarding the origin of increasing volumes of pork, bacon and chicken imports on supermarkets shelves.
Padraig Walshe said unless retailer dominance is controlled, European consumers will ultimately pay the price of food scarcity, lower quality and higher prices as farm families are forced out of business.
The IFA President called on the European Commission to take action and regulate the retail multiples in order to rebalance power between retailers and suppliers and protect the food supply chain.
He said supermarkets must be held accountable and made adhere to proper trading standards in their relationship with primary producers. In addition, he said the unacceptable trading behaviour and abuse of power by some retailers must be outlawed.
Mr Walshe said the reality is that the multiples exercise a crushing dominance over both food processors and farmer suppliers.
"Supermarkets are entitled to make a profit but so also are farmers and food suppliers," he said.
The largest multiple in the Irish market, Tesco, controlling 25.7 per cent of market share this week announced group profits of £3.1 billion on a turnover of £59.4 billion.
Mr Walshe pointed out that the Tesco group turnover is more than one-third of Ireland’s Gross Domestic Product.
