IFA Retail Project Team Losing Confidence in Minister Bruton Code of Practice

Recently speaking after a meeting of IFA's Retail Project Team, IFA President John Bryan said there was strong criticism of the Government for its inaction on the 'Consumer and Competition Bill', which is to include a Statutory Code of Practice for the Grocery Goods Sector. The IFA Project Team said it was losing confidence in Minister for Jobs, Enterprise and Innovation Richard Bruton's commitment to deliver this Bill, which has been promised to IFA on many occasions in the past. The legislation has been A listed for Government approval since last Autumn.

John Bryan said that both Government Parties had made a big play of this issue in the run up to the General Election over two years ago. The Programme for Government also has a commitment to 'enact the Fair Trade Act, which will ban a number of unfair trading practices in the retail sector such as 'hello money' which suppliers have to pay to secure a place for their goods on supermarket shelves'.

"The inability of the Government to address the serious inequities in the food supply chain is putting primary producers under severe income pressure and some processors are in danger of being forced out of business. Demands by retailers for large sums of money from suppliers are adding to this pressure, and is totally unacceptable."

John Bryan said, "IFA Chairmen from every sector, including dairy, horticulture, vegetables and all meats, highlighted the persistent upward trend in production costs. Coupled with the difficult weather conditions, this is leaving producers in many cases in a loss-making situation. This is unsustainable and the retail multiples must reflect this reality by returning higher prices back down the chain".

On the increasing dominance of own brands, the IFA Chairmen were unanimous in their view that there is a need for legislation at national and EU level to ensure a fair balance is maintained between own-brand, and branded, products. "It is clear that the pricing policy of own-brand versus brand is having a serious impact in the ability of the food supply chain to allow producers invest and sustain their viability."

Source: IFA - IFA Retail Project Team Losing Confidence in Minister Brut on Code of Practice

• < Prev
• Next >