Hello money and pay to play charges are among a raft of unfair conditions imposed by retailers on Irish farmers, the IFA has told the European Commission.
Responding to the European Commission’s public consultation on how to make the EU food supply chain fairer, the farm organisation listed a series of unfair trading practices (UTPs) at play every day in Ireland.
They include:
Late payments to suppliers.Below-cost selling, discounting of products and loss leaders.Hello money and pay to play money.Payments for wastage and shrinkage.Payments for marketing costs.Payments for shelf-space.Unsustainable tendering by retailers.Price takers
In its submission to the European Commission, the IFA described an imbalance of power between retailers as price setters at the top of the chain and primary producers as price takers at the bottom of the chain.
This, the IFA said, has resulted in a situation where farmers are sometimes compelled to accept unreasonable conditions and prices that do not cover their costs or provide an economic return.
“Retailers use the practice of aggressive discounting of food to encourage footfall into their stores, which is unsustainable,” the IFA said.
“The practice of tendering carried out by retailers is both unfair and unsustainable.”
Legislation and enforcement
It called for an EU-wide legislative approach, including proper enforcement mechanisms, to curb unfair trading practices.
“The voluntary Supply Chain Initiative (SCI) is not working for primary producers.
“If this continues unchecked, retail power and big business will destroy the European family farm structure and undermine food security for the EU’s 500 million consumers.”
It wants enforcement to be overseen by an independent regulator in each member state, similar to the UK model of an independent retail ombudsman.
Price transparency
It also called for prices paid for food products within the supply chain to be published.
The price received by farmers is published, while the consumer prices are clear on shops shelves.
However ,there is a lack of reliable information on the prices that are paid in between.
“The lack of a wholesale price reporting system for food produce is undermining the competitive functioning of the food supply chain,” according to the IFA.
Read more
Consultation on unfair trading closing
UTP legislation key to protect farmers – and Hogan’s legacy
France to base food prices on farmers’ production costs
Hello money and pay to play charges are among a raft of unfair conditions imposed by retailers on Irish farmers, the IFA has told the European Commission.
Responding to the European Commission’s public consultation on how to make the EU food supply chain fairer, the farm organisation listed a series of unfair trading practices (UTPs) at play every day in Ireland.
They include:
Late payments to suppliers.Below-cost selling, discounting of products and loss leaders.Hello money and pay to play money.Payments for wastage and shrinkage.Payments for marketing costs.Payments for shelf-space.Unsustainable tendering by retailers.Price takers
In its submission to the European Commission, the IFA described an imbalance of power between retailers as price setters at the top of the chain and primary producers as price takers at the bottom of the chain.
This, the IFA said, has resulted in a situation where farmers are sometimes compelled to accept unreasonable conditions and prices that do not cover their costs or provide an economic return.
“Retailers use the practice of aggressive discounting of food to encourage footfall into their stores, which is unsustainable,” the IFA said.
“The practice of tendering carried out by retailers is both unfair and unsustainable.”
Legislation and enforcement
It called for an EU-wide legislative approach, including proper enforcement mechanisms, to curb unfair trading practices.
“The voluntary Supply Chain Initiative (SCI) is not working for primary producers.
“If this continues unchecked, retail power and big business will destroy the European family farm structure and undermine food security for the EU’s 500 million consumers.”
It wants enforcement to be overseen by an independent regulator in each member state, similar to the UK model of an independent retail ombudsman.
Price transparency
It also called for prices paid for food products within the supply chain to be published.
The price received by farmers is published, while the consumer prices are clear on shops shelves.
However ,there is a lack of reliable information on the prices that are paid in between.
“The lack of a wholesale price reporting system for food produce is undermining the competitive functioning of the food supply chain,” according to the IFA.
Read more
Consultation on unfair trading closing
UTP legislation key to protect farmers – and Hogan’s legacy
France to base food prices on farmers’ production costs
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