EU should be addressing 'complete stranglehold' that the factories have on the livestock industry - ICOS
While welcoming the European Commission’s proposal for a Directive on Unfair Trading Practices (UTPs) in the food supply chain ICOS National Marts said it must must also address meat factories.
The European Commission announced a series of measures on Thursday to protect small European farmers and food producers from what it says are unfair trading practices by larger corporations.
The measures, which still need to be approved by member states and the European Parliament, will outlaw practices such as late payments, last-minute order cancellations and retroactive changes to contracts by the buyer.
Only small and medium-sized producers, which are defined as having fewer than 250 employees or an annual turnover of less than 50 million euros ($62 million), are targeted by the proposal.
Additionally it is limited to companies that have their base in the EU.
ICOS National Marts Chairman, Michael Spellman said his organisation are concerned to ensure that meat factories must come under the scope of this Directive due to their dominant market position and the role that is exercised by a small number of large entities in the overall supply chain.
“The complete stranglehold that the factories have on the livestock industry in Ireland is a gross example of the Unfair Trading Practice which this Directive should be addressing.
"Measures currently being enforced by Irish meat factories in their buying practices are subverting the free trade of cattle in Ireland, controlling prices and stifling competition.