Getting the office of the new agri-food regulator (An Rialálaí Agraibhia) fully up and running cannot come quickly enough for Irish farmers.
Within such a context, it is to be hoped that the retailers could not bring down the price of food items in the supermarkets, without first justifying their decision.
The recent move by some retailers to drop the price of liquid milk in their outlets is another example of the multiples’ cavalier attitude when it comes to their relationship with Irish farmers and processers.
Food regulator
Repeated calls have been made over many years for greater transparency to be brought to bear with the farming and food sectors.
But, thus far, it is farmers who seem to be the only group within this chain making such a commitment.
The reality is that the true cost of producing milk on farm can be discerned, with little or no effort, on a real-time basis.
Meanwhile, the polar opposite principle holds when it comes to discerning the cost incurred by food retailers.
Farmers must be assured of a fair price for the food they produce: It’s up to the new food regulator to ensure that such is the case.
Transparency goes to the very heart of Irish agriculture. And it’s a principle set to gain even further momentum during the period ahead.
Take farming’s response to the challenge of climate change. The coming years will see agriculture having to prove categorically that greenhouse gas (GHG) emission levels within the sector are coming down.
This means more scrutiny, more data recording, plus more time and effort required on the part of farmers to come forward with the figures that confirm the climate change compliance of their businesses.
It is only fair that, in return, primary producers should be paid a fair price for the high-quality beef, milk, lamb, pork and grain that they produce on a daily basis.
Farmers
Society, across the board, has recognised the need for workers to receive a minimum wage; currently, the national rate stands at €11.30/hour.
For their part, farmers are in the business of producing food, a vital necessity for everyone on this planet.
Given the significance of this reality, I think it is only fair that those involved in food production should be guaranteed farmgate returns that reflect the investment and time required to make all of this happen in the first place.
As a consequence, retailers should not be allowed to drop food prices on an ad hoc basis, without at least formally explaining the rationale for these decisions.
The role of a food regulator in this context is more than obvious.
Legislation
The Agricultural and Food Supply Chain Bill 2022 which provides for the designation of specific functions to new regulator has now completed all stages through both houses of the Oireachtas.
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 bill will have to be signed by President Michael D. Higgins before it comes into law.