Irish growers have told the Minister of State, Pippa Hackett, that “retailers’ primary focus is about securing the lowest price” from them.
Minister Hackett heard from members of the Horticulture Industry Forum that retailers just want the lowest prices and do not give “due consideration of the environmental benefits of buying locally grown produce”.
The forum, which is an umbrella organisation for fresh produce growers, also highlighted directly to the minister how fragile the supply chain currently is in Ireland.
It has previously warned that around five multiple groups control more than 90% of the retail market and “there is a high level of price competition between these groups”.
The forum has also said that fresh produce growers are “in a weak position to bargain for a fair price” as many are competing with each other and often only have the capacity to supply one of the supermarket chains.
Growers
Minister Hackett, who has special responsibility for land use and biodiversity, said that she was “particularly concerned” to hear about the current position that growers are dealing with in relation to retailers.
She added:
“There is a real need to engage with the retailers on their long-term intention to support local horticulture producers through sustainable pricing to ensure the viability and growth of the sector.”
The minister disclosed that together with Peter Donnellan, of Wexford Fruit Producers – who is the new chair of the forum – she plans to seek meetings with all major retailers to discuss the issues facing growers in Ireland at this time.
She also said a new draft National Strategy for Horticulture is currently open for public consultation and has encouraged all growers to contribute to this consultation.
According to a report compiled for the Department of Agriculture, Food and the Marine (DAFM) the horticulture sector is the fourth largest sector within agriculture and in 2020 had a farm gate value of €467 million.
However figures suggest there has been an exodus of growers from the sector because of a number of key issues including input costs and the price that retailers are willing to pay to local growers for their produce.
But Minister Hackett has insisted there is now an “opportunity” for growers to help shape the future of their sector.
“We will all need to work together to meet our collective vision of growing a more profitable value-added sector driven by sustainability and innovation,” she said.