Meetings are ongoing between the horticulture sector and supermarkets to facilitate a framework that will be used to draft supply contracts with fruit and vegetable growers. The establishment of a written charter was identified as a key action in the national horticulture strategy, which aims to increase the farmgate value of the horticulture sector by 30% by 2027.
Meetings are ongoing between the horticulture sector and supermarkets to facilitate a framework that will be used to draft supply contracts with fruit and vegetable growers.
The establishment of a written charter was identified as a key action in the national horticulture strategy, which aims to increase the farmgate value of the horticulture sector by 30% by 2027.
The IFA’s horticulture executive Niamh Brennan stated that a charter is “definitely necessary” for Irish growers as the retail landscape here is dominated by only five supermarkets, around half the number that would be seen in comparable EU member states.
“The aim of the charter is to ensure there is greater engagement and better communication between retailers and growers to ensure there is domestic Irish produce available on shelves 12 months of the year,” she said.
Brennan stated that unfair trading practices legislation has limitations and that there is need for a charter that goes “beyond the scope” of what is currently covered by these rules.
Supply contracts
A focus of the charter negotiations will be the facilitation of multi-year supply contracts, while also allowing prices be index-linked to cost, so margins are not wiped out should input costs rise, to allow growers better plan for the future.
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