IFA president Tim Cullinan has met with retailers in the last week to highlight the severe loss-making situation that is facing many farmers as a result of escalating costs.

“Poultry and pig farmers, along with many horticulture growers, are at crisis point. Without an immediate increase in returns, these sectors cannot continue without casualties,” he said.

The IFA has outlined to retail management that using food in cut-price promotions, especially from sectors that are facing huge financial strain, is very damaging and undermines the value of farmers’ produce.

Tesco, SuperValu, Centra and Lidl management have met and listened to IFA concerns surrounding farmers’ production costs and viability and have committed to direct engagement with their suppliers of Irish chicken, eggs, pork and bacon, as well as the fruit and vegetable growers that they deal with.

Important players

“These important players in the retail sector have a vital role. They must now prove to farmers that they have not only listened, but that they will follow through on these engagements with suppliers and ensure that farmers’ costs are covered and they can afford to stay in business,” Cullinan said.

IFA will work with any retailer to find solutions, saying that negotiations across the table are always the best way to achieve this. Cullinan also noted that some retailers had not been as open to negotiations with the IFA, adding that they must not be found wanting when it comes to recognising the pressure that farmers are under.

IFA condemns Government inaction

Both IFA poultry chair Nigel Sweetnam and IFA pigs chair Roy Gallie have condemned what they say is the Government’s inaction on retail legislation, saying that every link in the food chain deserves to have its cost recognised, as well as an ability to recoup these costs.

The retail grocery market in Ireland is dominated by five major retailers, controlling 90% of the market, and the IFA has warned there will be more and more farmers going to the wall unless there is robust regulation of the retailers.