A grim warning about the future of the Irish Republic’s horticulture industry, and the 7,500 workers it employs, has been sounded by the country’s minister for food, Trevor Sargent.
In a blunt end-of-year message, he claimed growers’ livelihoods and workers’ jobs were being put at risk by a price battle between supermarkets for a larger share of the Irish retail market. Some Irish vegetables were in danger of disappearing because of what he called “this short-sighted policy”.
The minister, a former Irish Green Party leader, whose North County Dublin constituency is a major contributor to the horticulture sector, said that the cost of producing vegetables in 2008 had increased substantially as a result of higher fuel and fertiliser prices. Despite that, the price war between retailers was forcing growers to accept payments that were below the cost of production.
The ministerial warning comes as the major chains in Ireland - Tesco, Dunnes, Superquinn and the Musgrave-owned SuperValu stores - deploy vegetables as loss leaders in a bid to fight off the challenge of discounters Lidl and Aldi, as well as to counter an exodus of shoppers to Northern Ireland to take advantage of the falling value of sterling against the euro.
Tesco is currently offering Rooster potatoes and Golden Wonders at half price, with similar reductions on swedes, parsnips, broccoli and Brussels sprouts. The other chains have matched these cuts, with Dunnes offering a price comparison with what it was charging consumers for the same produce just a year ago. Its 2007 price for 10kg of Rooster potatoes was €7.99 (£7.74) - now it is €3.49. Similarly, the price of 2kg of carrots and 1kg of parsnips has been cut from €1.99 to €1.29.
This approach, according to Sargent, could lead to the disappearance of some vegetables, as Irish growers may decide it is no longer worthwhile to produce them. He is especially fearful about the survival of the Irish Brussels sprout. “There is a very real danger it will not be with us for very much longer,” he said. “The way things are going, it could be gone next year.”
Just a year ago, Irish growers were being paid €1.25 per kg for pre-packed sprouts, he pointed out. They needed a 25 per cent increase in 2008 to cover the increased cost of inputs, “but the current price being paid to the same growers is now €1.05 for the same kg of pre-packed Brussels sprouts”.
Sargent added: “While the cost of living has increased for everyone, a grower is only receiving 20 per cent more today for sprouts than his father did in 1980. By contrast, a car costs 500 per cent more today than in 1980. The impression being given by retailers is that you can grow good food for nothing.”
The minister appealed to Irish consumers to show loyalty and support to home produce in a bid to preserve jobs and livelihoods. “People may think they will be fine with imports, but they won’t be,” he said. “Imported produce has to travel further and can never compete for freshness with what is grown here at home.”
