Supermarkets deny IFA price claim

The group representing major supermarkets has condemned the Irish Farmers Association (IFA) for claiming that some of its members…

The group representing major supermarkets has condemned the Irish Farmers Association (IFA) for claiming that some of its members are engaged in preadatory pricing.

Retail Ireland, which is affiliated to Ibec, said supermarkets need not apologise for aggressive competition in the sector and accused the IFA ignoring consumers.

There is something seriously wrong in the food chain when on the one hand pig producers are losing €25 on every pig they sell and are being told they can't get a price increase, and at the same time supermarkets are selling pork at half price
IFA president Padraig Walshe

Earlier, IFA president Padraig Walshe said farmers' livelihoods were being threatened by bullying from major supermarkets who were using Irish meat, vegetables and fruit as loss leaders to attract customers.

He said Aldi, Superquinn, Tesco and Supervalu were maintaining their margins on the loss leaders and making farmers foot the cost by paying lower wholesale prices.

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"There is something seriously wrong in the food chain when on the one hand pig producers are losing €25 on every pig they sell and are being told they can't get a price increase, and at the same time supermarkets are selling pork at half price. The same goes for beef and lamb," Mr Walshe said.

"Unscrupulous predatory pricing by supermarkets is most extreme in fresh produce, where the growers' bargaining power is weakest, and threatens to wipe out our remaining Irish potato, vegetable and fruit growers," he added.

Torlach Denihan, director of Retail Ireland said if the IFA had evidence to support their claim it should be reported to Competition Authority.

"The IFA ignores the consumer, but the retail sector cannot as it depends on the consumer for its very existence.

"The sector is proud of its efforts to secure value for its customers, notwithstanding the IFA perspective that this is something to be ashamed of," Mr Denihan said.