Legislation going through the Dáil to establish a new Agri Food Regulator will “protect” farmers in their business dealings along the agri-food supply chain, according to the Minister for Agriculture, Food and the Marine, Charlie McConalogue.
The Agricultural and Food Supply Chain Bill 2022 came before the Committee on Agriculture, Food and the Marine again yesterday evening (Wednesday, February 8) for debate on amendments put forward by the committee.
The minister told the committee that farmers, growers, fishers and food producers need to have assurance that they are protected in their business dealings along the agri food supply chain against unfair practices by buyers of their products.
“This bill means that such protection will be provided to them by an independent regulator, who will enforce the law on unfair trading practices and will have the necessary powers of inspections, investigations and prosecutions to do so,” Minister McConalogue added.
“Strengthening the position of primary producers can also be achieved through other means provided for in this bill.”
The Agricultural and Food Supply Chain Bill 2022 also confers the power to make regulations about unfair trading practices in the agricultural and food supply sector.
According to Minister McConalogue the bill will empower the new regulator to provide more information on price and market issues in the supply chain to “support farmers and other suppliers in their decision making”.
“Having timely and easy access to information about market developments helps food producers to compete effectively in global markets,” he added.
The minister said many of the recommendations put forward by the Committee on Agriculture, Food and the Marine have been taken into account in the new bill.
However, he informed committee members yesterday evening that he believes two of their recommendations “were not appropriate as presented”.
Agri Food Regulator
One of the committee’s recommendations was to extend the scope of the bill to include business to consumer relationships and that the Competition and Consumer Protection Commission (CCPC) responsibilities relating to the sale of foodstuffs should be transferred to the regulator.
Minister McConalogue rejected this and said there was “already a well-established legislative framework and services provided for business to consumer protection”.
He also rejected a recommendation from the committee that the regulator should have full enforcement powers “including confiscation of any evidence, in a case where it believes
or suspects a processor or processors are collaborating in price”.
“I do not believe that it would be appropriate to transfer competition-related powers from the CCPC to the regulator; or that the regulator should deal with competition matters in parallel to the CCPC,” Minister McConalogue added.
He also highlighted in relation to concerns raised by the committee about selling below the cost of production that the new regulator will have the power to “conduct or commission a study or analysis of any matter relating to the agricultural and food supply chain”.
Separately, the Irish Farmers’ Association (IFA) has urged the minister to ensure that the regulator must be given “real powers to intervene in the food chain”.
IFA president Tim Cullinan said the organisation’s position is that while the office has been given the title of regulator it does not appear to have the necessary powers to “effect real change”.
“Enforcement of the Unfair Trading Practices Directive and reporting on market data will help bring transparency to what is a broken system.
“But without a food regulator who has the power to ensure a fair price, farmers remain to be convinced how they will benefit from the long-promised Office of Fairness and Transparency and Food Regulator,” Cullinan said.