The Irish Farmers’ Association (IFA) has said that poultry farmers “will not tolerate any reduction in the margin they receive” amid reductions in consumer prices by some retailers.
Both Aldi and Lidl have announced cuts to prices for a range of agri-food products in recent days, sparking concern from farm organisation that this reduction in price will be passed back to farmers through the prices they receive.
Commenting on the cuts, IFA poultry chairperson Nigel Sweetnam said: “Supermarkets are demanding premium product at world commodity prices with little or no regard to producers’ or processors’ costs of production, which are still substantially higher than the last time we were in negotiations.
“We have to be paid properly.
“Any reduction in farmers margins will inevitably lead to farmers going out of business, as has already happened in the vegetable sector,” Sweetnam added.
“It will not be tolerated. We will take whatever steps are required to ensure the survival of family farms that are producing quality, affordable and healthy food in the most sustainable manner,” he said.
The IFA poultry chairperson added: “At a time of increasing costs, it is neither realistic nor acceptable to ask farmers to work for nothing, particularly as poultry farmers have such huge investments in buildings and facilities.”
Lidl has this week confirmed a price drop of up to 35% across 100 items within its everyday range including fresh and frozen foods, cupboard staples, bakery items, and home essentials.
The retailer said that it has already significantly reduced prices of more than 600 products since October 2023.
Also this week, Aldi confirmed a new series of price cuts of up to 23% across a range of products, including Irish beef burgers, free-range chicken fillets, and fat-free Greek yoghurt.
The retailer said that the cost of a typical trolley of its most popular goods has reduced from €121 to €106.
Responding to the price reductions, outgoing IFA president Tim Cullinan said that farmers will be “very sceptical” over the cuts.
This view was echoed by the new president of Irish Creamery Milk Suppliers’ Association (ICMSA), Denis Drennan, who said that the price cuts have offered the newly operational An Rialálaí Agraibhia (Food Regulatory Office) its “first real test”.