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Agrifood Sector

Dáil Éireann Debate, Tuesday - 24 June 2014

Tuesday, 24 June 2014

Questions (404)

Brendan Griffin

Question:

404. Deputy Brendan Griffin asked the Minister for Agriculture, Food and the Marine his views on below-cost selling of agricultural produce; the way producers could be protected from this; and if he will make a statement on the matter. [26596/14]

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Written answers

Fairness in commercial dealings is a key ingredient of a sustainable and well functioning food supply chain. I do not have a role in setting prices or the details of commercial arrangements in the food supply chain but I am concerned about fairness and sustainability.

The Consumer Protection and Competition Bill published by my colleague Minister Bruton provides for statutory regulation of certain practices in the grocery sector in the form of regulations with associated sanctions and new investigation and enforcement powers. The regulations will prohibit many unfair practices including the compelling of payments for the allocation and retention of shelf space and compelling a supplier to obtain any goods or services from particular third parties.

Sustainable food production requires access to a wide range of markets, competitiveness, adding value and innovation. The resources of my Department and its agencies are deployed to support and develop quality production systems, deep market insight, understanding of buyer and consumer needs and facilitating varied routes to market. I support initiatives which partner retailers, food producers and agencies in improving routes to market. In the beef sector I have recently hosted two round table meetings to facilitate improved communications between processors, farmers and other stakeholders and in the interests of a more balanced food supply chain I am examining possible legislation to support the development of producer groups in the beef and dairy sectors, to allow for collective action in order to give farmers scale and market presence, and potentially as a vehicle for facilitating technology adoption and the development of quality or other standards.

I believe that operators along the supply chain must acknowledge their interdependence and work together to develop a supply chain model which sustains agricultural production at a time when global demand for food is increasing and Ireland is positioned to grow the value and volume of agrifood products and exports.

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