Sinn Féin Deputy Louise O’Reilly has asked that the Minister for Enterprise, Trade and Employment, Simon Coveney put pressure on the retail forum and supermarkets regarding “profiteering”.
This shadows recent analysis from the Competition and Consumer Protection Commission (CCPC) of the Irish grocery retail sector, which outlined that profits reported for supermarkets were low in comparison to profits for some producers.
According to the data, Aldi reported a pre-tax profit margin of 2% in 2021. Musgrave, the owner of SuperValu, reported a pre-tax profit margin of 2.4% for the same period.
Producer Unliver reported a pre-tax profit margin of 16.3%, and Kerry Group a margin of 11.9% in 2021.
The deputy said she knew the report had no evidence of “profiteering”, but that “it has to be coming from somewhere”.
“The profits are not translating to the price at the till. We are in the middle of a cost-of-living crisis and people are being squeezed.
“Small businesses and growers in my constituency in north Co. Dublin will tell you that their margins are cut to the absolute bone,” Deputy O’Reilly said.
Retail forum
Minister Coveney said the government is “concerned” about the costs of groceries and the impact this is having on consumers.
He said that he and his colleague Minister Neal Richmond have been actively engaging with retailers and the CCPC to seek better outcomes for consumers.
According to the minister, at last week’s retail forum, grocery retailers assured Minister Richmond that they would continue to pass the impact of any reductions in input costs on product prices to their customers.
A further update from the sector will be sought from retailers and the CCPC will keep the sector under review.
“Fairness and transparency in the food sector are essential, as is ensuring that consumers have access to sufficient and accurate information before making a purchase,” Minister Coveney said.
Minister for Agriculture, Food and the Marine, Charlie McConalogue is working to establish the new agri-food regulator under the Agricultural and Food Supply Chain Bill 2022.
It will provide a price and market analysis and reporting function, along with a regulatory enforcement function concerning the enforcement of prohibited unfair trading practices.
Deputy O’Reilly stated: “I respect the role of the agrifood regulator and Department of Agriculture, Food and the Marine, but there is a role for the minister’s department here as well.”