In response to protests at two of its premises – spurred on by a cut-price chicken promotion – Lidl has said that its poultry producers still receive their contracted price for the product, despite the discount.
A 24-hour Irish Farmers’ Association (IFA) poultry protest is taking place at two Lidl stores today (Tuesday, January 25), in Cavan town and Monaghan town.
In a statement, the German supermarket told Agriland:
“Like all retailers, Lidl operates weekly promotional specials under our Super Savers range. Lidl bears the costs of all promotional items and the supplier receives the contracted price.
A spokesperson added that this is a temporary price drop and that further pricing decisions could not be discussed for commercial reasons.
However, Lidl’s decision to sell large chickens in their discount range has been described by the IFA as “kamikaze behaviour” and “grossly irresponsible” at a time when farmers are struggling. Farmers are seeking a 15c increase on a chicken and a 2c increase on eggs.
IFA Poultry Committee chair, Andy Boylan, said selling a 1.9kg chicken for €3.49 has the “potential to lead to a price war that producers will, ultimately, pay for”.
“Some retailers have recognised the very severe income difficulties at the moment and they have increased the price of chicken on the shelf,” he said.
“Lidl has pulled the price, which shows the complete disregard they have for producers.”
When asked if Lidl will engage with the IFA on this matter, a spokesperson said Lidl’s buying team engage extensively with the IFA on a number of different topics throughout the year and it is expected that this will be no different.
Boylan said the government’s inaction on retail legislation has created this situation.
“This race to the bottom will have significant consequences for producers. Unless we have robust regulation of retailers, we will see more and more farmers going to the wall.”
The cost of gas, energy, labour and animal feed have all seen inflation not witnessed by the sector in half a generation, while Irish inflation shot to a 14-year high in October, which has had a damaging effect on the sector, he added.