FDII: Urgent need for fair trade legislation in grocery sector

IFA president John Bryan wants the government to tackle inequality in the food chain.

Food and Drinks Industry Ireland has called for the government to ensure fairer trade between grocery suppliers and retailers, as have various farmers' groups

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Food and Drink Industry Ireland (FDII) has called on the government to introduce fair trade legislation in the Irish grocery sector in line with the commitment in the Programme for Government. Paul Kelly, FDII director, stressed the importance of this issue, following the publication by the UK government of a bill to introduce a grocery code adjudicator there.

He said: “Irish food exporters to the UK will now be protected by fair trade legislation in the grocery sector and an ombudsman to oversee it. However those same companies remain unprotected from unfair commercial practices in the domestic market and face the full force of retail buying power. These practices include a failure to respect contractual terms, de-listing threats to obtain unjustified advantages and unilateral off-invoice deductions without sound business reasons.”

The introduction of a voluntary code of conduct for the grocery sector in Ireland has still not come into effect despite promises made by the government.

Irish suppliers and farmers often complain about feeling threatened by the buying power of the multiples and have called on the government to introduce an ombudsman and a code of practice over the past number of years but it is still being considered.

“Any law that protects retailers and criminalises farmers is wrong. Our competition law is flawed and the law must be changed,” Bryan said.

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