The balance of negotiating power in the food chain has been “fundamentally changed” from producers to the large supermarkets leading to a declining share of retail prices in the agri-food sector the Minister for Agriculture Brendan Smith said today.
Speaking at an international agriculture producers conference in Dublin today Mr Smith said that the responsibilities of large supermarket chains operating in Ireland “do not and cannot be allowed to stop” at consumers and their shareholders but they must also extend to producers, processors and suppliers.
He said: "While acknowledging that retailers must strike a balance between value for consumers and a fair return to suppliers and producers, this cannot be done at the expense of a viable agri-food sector, such as we are fortunate enough to have in this country."
Mr Smith said that the continued development of the Irish agri-food sector depended on the support and market access provided by large multiples operating in the Irish market.
He said he "awaited with interest” EU Agriculture Commissioner, Marianne Fischer Boel’s reviews of anti-competitive practices and of the retail sector to be published later this year.
The Minister also told the conference he is working in tandem with the Tánaiste, Mary Coughlan, on a code of practice to achieve a balance in the relationship within the retail trade.