Farm Ireland

Friday 23 February 2018

FDII urges retailer action

Darragh McCullough

Darragh McCullough

The Food and Drink Industry of Ireland (FDII) has called for urgent action to curb the abuse of suppliers by big retailers.

Despite Government promises of new legislation to address rising retailer power as far back as 2011, the Department of Jobs and Enterprise now claims that it will publish proposals in September.

The FDII said that unfair commercial practices such as delisting threats and excessive transfer of risk, where marketing promotions are paid for exclusively by suppliers, were common issues faced by food suppliers here.

FDII director, Paul Kelly, believes that a new statutory code of practice for the grocery sector similar to what is being developed in Britain is required.

"We don't need new competition rules or heavy compliance costs that end up being passed down the line to the consumer. Instead we need a name and shame scenario," he said.

Mr Kelly also hit out at the Competition Authority, who he claimed was out of line with similar bodies across Europe who were finding that competition rules are not appropriate to curb retailer practices.

He added that both farmers and processors were suffering at the hands of the retailers.

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Irish Independent