The cabinet has approved a bill to establish a new agri-food authority to be known as the Office for Fairness and Transparency in the Agri-Food Supply Chain.

The new independent statutory authority will be established through the agricultural and food supply chain bill 2022.

Minister for Agriculture Charlie McConalogue announced cabinet’s approval of the bill on Tuesday.

The objective of the new office will be to promote the principles of fairness and transparency in the agricultural and food supply chain, according to the Minister.

Market analysis

The proposed office will perform price and market analysis on all sectors of the agri-food supply chain through publicly available data.

It will then produce various reports following this analysis and these will be made available to stakeholders and the wider public.

Office for Fairness and Transparency in the Agri-Food Supply Chain will have a role in business to business relationships. / Ramona Farrelly

The new office will become the State’s designated authority for enforcing the rules on unfair trading practices in business-to-business relationships in the agricultural and food supply chain.

Business-to-consumer relationships

The agricultural and food supply chain bill 2022 does not deal with business-to-consumer relationships. Instead, it deals with business-to-business relationships.

This means it will deal with the relationships between farm businesses and processors and processors and retailers, but not the relationships between retailers and their customers.

The bill provides for the Minister to introduce charges for complaints and a levy on industry.

The Office for Fairness and Transparency in the Agri-Food Supply Chain will be led by a board and will have a chief executive officer.

Independent voice

Following the approval by his cabinet colleagues, Minister for Agriculture Charlie McConalogue said: “Events of recent weeks reminded us all of the fragility of the agri-food supply chain and it is now more important than ever to ensure that there is an independent voice to promote, and indeed enforce, the principles of fairness and transparency in that chain.”

He said the office, which has been long called for by farmers, “will engage with retailers, processors, wholesalers, farmers, fishers and others on matters affecting fairness and transparency”.

“The new office will be an advocate for farmers and fishers and other small food businesses to help them improve their position,” he said.

The Minister described Tuesday’s development as “an important step in fulfilling the programme for government commitment to bring greater fairness, equity and transparency” to the agri sector.

Power to investigate

Elsewhere, Sinn Féin said the new office must have full power to investigate and penalise processors and retailers that seek to exploit farmers and consumers.

The party’s agriculture spokesperson Matt Carthy TD said farmers will be apprehensive that the authority may be a “continuation of a minimalistic approach that fails to adequately regulate imbalances in the food supply chain”.

He called on the Minister to publish the full powers and resources that will be available to the authority’s office.

Constantly shifted

The Sinn Féin TD criticised the approach by Minister McConalogue and said the timeline for the establishment of a food ombudsman has constantly shifted since he took office.

“That long-standing commitment to establish a food ombudsman was against a demand by farmers for a meat regulator,” he said.

Carthy called on the Minister to explain the difference between the proposed Office for Fairness and Transparency in the Agri-Food Supply Chain and a regulator.

Solves nothing

He said: “The fact that the unfair trading practices section established within the Department of Agriculture last year has yet to conduct a single investigation shows that the setting up of an authority in itself solves nothing.

“What is required, and what Sinn Féin will be demanding, is a regulator with real teeth to investigate the cartel-like behaviour and the exploitation of farmers and consumers by processors and retailers and to impose severe penalties when required."

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