A new bill will help strengthen the position of “farmers, fishers and suppliers in the agri-food supply chain” against larger buyers with greater bargaining power,” the Minister for Agriculture, Food and the Marine has told the Seanad.
Minister McConalogue said the Agricultural and Food Supply Chain Bill 2022 provides for the designation of specific functions to an Rialálaí Agraibhia (Agri-Food Regulator).
The minister told the Seanad: “Research shows that a lack of market transparency and inequalities in bargaining power lead to market distortions with potentially negative effects on the competitiveness of the food supply chain as a whole.
“Reporting on the market by the regulator for agricultural and food products can provide farmers with important information to allow them to improve decision-making. The more transparency we can bring to this area, the more we can ensure primary producers and farmers get a fair deal.”
However Senator Victor Boyhan also questioned the minister on whether the bill will prohibit “agricultural or food products” being sold by retailers for “less than the cost of production” – an issue that has been repeatedly raised by farm organisations throughout the passage of this bill.
Minister McConalogue told the Seanad that the bill “provides mechanisms for the regulator to examine and make recommendations on any aspect of the agrifood supply chain”.
He said previously the groceries order prevented below-cost selling but claimed that the “ultimate impact is that it leads to increased administration, red tape and more costs for the consumer”.
According to Minister McConalogue the rationale for setting up the Agri-Food Regulator office is to “ensure transparency” to benefit primary producers.
The agri-food regulator will have powers to impose fines of up to €10 million on buyers, including retailers, food producers and processors, “who engage in unfair trading practices with farmers and other suppliers”.
The office will also have the powers to investigate breaches such as late payments to suppliers, misuse of trade secrets, commercial retaliation and contract changes.
But one other key issue raised by Senator Boyhan during the Seanad debate was around the possibility of fees in relation to any complaint process.
Senator Boyhan warned that “incurring fees could deter those with legitimate complaints from coming forward” and undermine public trust in the new office.
Minister McConalogue said he does “not think there will be a fee in the foreseeable future”.
“I do not plan for there to be a fee, and I think it should be left without one.
“However, if abuse were to happen in the future, I would envisage a fee of between €10 and €30, or something like that, simply to stop people frivolously abusing the system,” he added.
The bill has now completed all stages through both houses of the Oireachtas.