Pressure on Bruton to deliver Grocery Code of Practice
At a time when reports of increasing levels of 'hello money' are coming to light, the IFA says the government must make good on its promises for a Statutory Code of Conduct.
Print25 March 2013
The Irish Farmers Association (IFA) has criticised 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.
IFA president John Bryan said a code has been promised to IFA on many occasions in the past. In fact the legislation has been A listed for Government approval since last Autumn.
Bryan said 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’.
ShelfLife also reported on a practice known as "Project COIN" in its latest print edition. "It stands for "commercial income" and has quickly become a serious management agenda item as [one] giant company looks for bottom-line improving payments from the supply chain in the run up to its year end," said ShelfLife publisher John McDonald.
The Irish Times carried an article last week stating that suppliers were being asked for large sums of ‘hello money’ in certain cases. Two food companies said they had been threatened with having their products delisted from one chain if they didn’t pay supports of more than €500,000, while a dairy supplier paid a seven-figure sum to fund a promotion and price discount drive.
Another supplier reportedly said retailers often refused to pay outstanding payments at the end of each year and in some cases he had written off payments amounting to €300,000.
According to Bryan: "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."
"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," added Bryan.
Related Articles
Rudimental to headline Rockshore Après Sea →
Glanbia’s performance ‘in line with expectations’ in first quarter →
Visitors meet Dunnes Stores celebrity brand partners at Ideal Homes Show →
Fans 0
Followers