The Irish Competition Authority may be asked to investigate whether the monopoly power exercised by multiples is forcing vegetable growers out of business.
Members of the government party, Fianna Fail, have asked for a meeting with Department of Agriculture minister Brendan Smyth to press for such an investigation and are hopeful he will order one. They say he is “very concerned about the present situation”, in which growers are being forced to quit the industry because of the inadequate prices being paid, at a time when production costs are spiralling.
“We feel that the multiples are abusing their monopoly powers to dictate prices and manipulate supply contracts,” said councillor Michael Kennedy, who will be among those meeting the minister. “Some growers haven’t had a price increase for years, despite the fact that inflation is now over five per cent and the supermarkets are warning the cost of groceries must go up.”
Kennedy is a parliamentary candidate in north Dublin, the centre of the horticulture sector and of the current crisis, and is tipped to win a seat in the general election, due in May. “Growers’ livelihoods are literally at the mercy of the multiples,” he claimed. “Despite having entered into supply contracts, they can cancel entire orders at any time, depending on customer demand.
“Alternatively, they can tell growers ‘We’re having a special offer this week on cabbage, broccoli or whatever, so we want a 20 per cent price cut.’ If the growers don’t accept that, they face having their vegetables left in the ground. In my book, that’s an abuse of power and we want it investigated by the Competition Authority.”
Kennedy insists that protecting the sector must be a government priority, and not just for the hundreds of jobs it provides. “If we lose the industry, Irish produce will be replaced by imports of lesser quality from abroad, which will be bad news both for the consumer and for the economy.”
Meanwhile, one of the north Dublin casualties, Declan Kerrigan, whose family have been in horticulture for four generations, is preparing to leave the industry after 25 years. “We’ve been working 80-hour weeks, but it’s no longer enough to earn a profit,” he said. “My costs are going up all the time, but I haven’t had a price increase since 2002. I can’t make any money, so I’ve decided to walk away before I end up bankrupt, which is what will happen if I try to keep going.”
From a 70-acre farm in Rush, he has been supplying cabbages and leeks to customers all over the Irish Republic. Now he plans to take a job as a farm manager - a difficult move, as he has never before worked for anyone but himself. But even as he prepares to leave, he refuses to name those he blames for forcing him out, in case they react to the criticisms. “I have €100,000 worth of cabbages in the fields and I can’t risk them being left to rot on me,” he explained.
