Delegates representing Irish growers and their major retail customers in Ireland are being invited to a special conference to discuss the state of the industry and how the problems threatening it can best be tackled.
The initiative has been put forward by a parliamentary committee examining the retail trade, which will make recommendations to government on what legislative measures it feels are necessary. The issues slated for discussion at the conference, which will be held later this year, include prices, margins, contract terms, display and promotion charges, as well as a proposed code of practice and retail ombudsman.
Among those invited are Ireland’s six major multiple retailers: Tesco, Dunnes Stores, Lidl, Aldi, Superquinn and the Musgrave-owned SuperValu chain. Committee chairman Willie Penrose said: “We will publicise the invitations and let the public know which companies have agreed to attend and which have not. Consumers can then draw their own conclusions.”
The committee has already taken testimony from horticulture minister Trevor Sargent, representatives of the Irish Farmers’ Association (IFA) and of Keelings, the fruit and vegetable group, as well as founder members of the now defunct Dublin-Meath Growers' co-operative, DMG. “We are doing other work in the background and following some interesting developments,” said Penrose, an Irish Labour Party deputy.
Penrose fully supports calls for the establishment of a retail ombudsman, and feels the cost of the office should be shared between government and the sector. On a code of practice, he insists it must be put on a statutory basis. “Voluntary codes are the equivalent of writing on toilet paper,” he said. “They are useless and I have no interest in them.”
Round table talks with the retailers had already been suggested by one of those who testified to the committee, the IFA’s John Dockrell, representing field vegetable growers. He said: “We must find some way of opening the book to show that our current position is not due to a single factor but has been caused by the recession, weather conditions, retail price wars and so on.”
He painted a bleak picture of the consequences if concerted action is not taken. “If we lose a number of key players or even small players this year, and the problem escalates to the point that we lose several more players next year, we will not have the critical mass to sustain the supply chain," he said.
“There is no point in engaging in a blame game. We must be positive. If people realise how bad things are on the ground, we will receive support.”
