The Irish Cattle and Sheep Farmers’ Association (ICSA) has hit out at supermarket chain, Aldi for claiming that its latest round of meat price cuts will not impact on the prices paid to any of its suppliers.
ICSA Beef chair John Cleary said: “This is a ludicrous claim. Aldi’s assertion that their price cuts will not affect their suppliers is simply unacceptable and out of touch with the reality faced by Irish farmers.
“It is our assertion that cutting the prices of Irish beef and lamb directly undermines the efforts and livelihoods of Irish cattle and sheep farmers,” he said.
Cleary made the comments following Aldi’s announcement this week that it would be reducing prices on a range of products, including Irish beef and lamb.
The ICSA chair continued: “Our beef and lamb producers are producing top-quality food to extremely exacting standards and they are doing so under serious financial pressures.
“In most instances farmers are struggling just to meet the bare minimum costs of production.
“It is incredulous to suggest that slashing prices on products that are already undervalued would not have a detrimental impact on suppliers,” he said.
Meat price decreases elsewhere
The ICSA has claimed that Aldi’s actions will “almost certainly” provoke a round of price cutting by other retailers on key farm products and this “will all feed back into downward pressure” on prices paid to producers.
Cleary continued: “Quite simply, at time when production costs have skyrocketed, this move by Aldi only serves to diminish the value of these products further by perpetuating unrealistic expectations regarding how low prices can plummet.
“There can be no doubt that the downward pressure on these prices will inevitably trickle down the food chain and will ultimately burden beef and lamb farmers who have always had the least bargaining power.”
Cleary said it is unacceptable that while retailers benefit from reduced prices, farmers are left to bear the brunt of these cuts.
“The reality is that these price cuts directly impact the bottom line of our farmers, making it increasingly difficult for them to sustain their livelihoods and maintain the high standards of quality and welfare that consumers expect,” he stressed.
“Instead of contributing to a race to the bottom that ultimately harms everyone involved, including farmers to consumers, we in ICSA would urge Aldi to reconsider its pricing strategy and acknowledge the true value of Irish beef and lamb as a matter of urgency.”