Dáil Éireann Debate, Wednesday - 31 March 2021
1293. Deputy Holly Cairns asked the Minister for Agriculture, Food and the Marine his views on legislation that would require buyers of agri-food produce to incorporate costs of production in price negotiations with farmers and producers; and if he will make a statement on the matter. [17491/21]
View answerThe Programme for Government includes a commitment to “Ensure fairness, equity and transparency in the food chain by establishing a new authority to enforce the Unfair Trading Practices Directive.
It is envisaged that this authority will have a specific role in analysing and reporting on price and market data in Ireland and this will be an important step forward in transparency. It is important to be aware however, that this office will have no role in the determination of commodity prices at any stage of the chain.
My Department is taking a two step approach to the establishment of the National Authority. Firstly, a statutory instrument will be drafted to transpose the UTP Directive by the deadline of 1st May 2021. This will provide for an Enforcement Authority which will have the powers as currently provided for in the Directive. The legislative and operational requirements for establishing a new Office of a Food Ombudsman or equivalent that might provide for functions other than those provided for in the UTP Directive are being examined. Primary legislation will be required both to establish this new authority, and to provide for any further powers which may be given to that office. It is intended that there will shortly be a national consultation process on the possible functions of the NFO.
As for legislation in relation to price determination, the price paid for goods is a matter between buyers and sellers and a function of supply and demand. In the context of food production, the costs of production differ substantially between individual producers. Similarly, the cost of processing, marketing and transport, the market price obtained for processed food, and the margin considered necessary to keep the business going, are all factors taken into account in the context of price determination. These are matters for commercial operators to determine.
It would, of course, be extraordinarily short sighted for processors not to take account of the viability of their suppliers in determining pricing policy, but price cannot be determined by the State.
It is, however, possible to strengthen the position of sellers in the market place by supporting collective action through producer organisations, by improving transparency and by prohibiting unfair trading practices and my Department is taking action in all of these areas.
