Farm Ireland
Independent.ie

Saturday 29 April 2017

Farmers slam Supervalu's ‘FREE’ food giveaway as 'unethical'

IFA beef farmers protest outside a supermarket over prices
IFA beef farmers protest outside a supermarket over prices
SuperValu store in South Dublin
Ciaran Moran

Ciaran Moran

Farmers have accused SuperValu of acting unethically by offering customers free potatoes and carrots when they buy beef, which they say is also promoted at a discounted price.

According to the President of the Irish Farmers Association, Joe Healy it is a further example of why there is a need political intervention at EU and national level to have proper regulation in terms of farmers getting a fair share of the consumer price.

"In this case, there isn’t even a consumer price to get a share of. It demonstrates the need for a clear ban on below-cost selling of food”.

“This sort of stunt is a race to the bottom. Farmers have little or no market power and they will ultimately bear the brunt of this type of unethical price promotion. Farmers and consumers would expect Supervalu to show a higher standard of corporate responsibility in line with their ‘community retailer’ ethos”.

Joe Healy said: “Farmers cannot produce for free. For example, the cost of production for carrots is 55c/kg. Retailers cannot pretend that promotions do not have a serious impact on the sales for other competing fresh products such as broccoli and cauliflower, the highly perishable nature of which means they cannot be held over until the promotion finishes.

"This distorts the market for everyone, regardless of whether your product is on promotion or not”.

The IFA President said he would be seeking an urgent meeting with Supervalu to warn about the grave consequences for Irish growers if retailers embark on a strategy of encouraging footfall by promoting quality food for free.

Joe Healy yesterday chaired a workshop in Brussels for the European Farmers Organisation (COPA) on the recently published Agri Markets Taskforce report, which deals with initiatives to ensure that farmers get a fairer share of the consumer price for their products. 

He said, “It’s hard to believe that as we are making significant progress at European level on restoring a fair margin for farmers, we have the largest Irish retailer behaving like this. Producers of fresh produce are rightly furious that their work and investment counts for nothing in the eyes of Supervalu.”

In a statement, SuperValu said the current promotional offer, designed as part of our ongoing effort to encourage consumers to cook with Irish produce, has been planned and agreed in consultation with our suppliers.

It said the entire cost of this promotion is funded by SuperValu.

"As the number one supporter of the Irish agri-food industry, SuperValu sources from over 2,200 Irish suppliers – more than any other grocery retailer in the Irish market – equating to an annual economic contribution of €2.19 billion. We are committed to working with our suppliers to build long-term, sustainable partnerships," it said.

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