Oireachtas Joint and Select Committees

Tuesday, 5 March 2013

Select Committee on Agriculture, Food and the Marine

Retail Sector: Discussion with RGDATA and Retail Ireland

3:50 pm

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail) | Oireachtas source

I was very interested in what Mr. Lynam and Mr. Gleeson had to say. However, I talk to various people involved in the supply chain, particularly those in its weakest link, small processors or producers who, by their very nature, are small and diverse. What they report is very far from the rosy picture painted today. We are often told there are a few dominant players in the market, an issue I was trying to explore during the previous session. Of course, there are many small independent grocers, but most of them deal with big wholesalers.

It is fair to say that between prices and the actual terms and conditions which apply, there is a huge squeeze on suppliers, producers and processors to continually provide more for less. I have been informed about specific examples of behaviour which show an abuse of dominant position by the biggest players in the market here. One of the reasons I referred at our earlier session to the need for transparency with regard to where the money was being made was that we were constantly informed that all of this squeezing was being done by the biggest and most powerful players on an altruistic basis and in the interests of the consumer. As the delegates from the retail trade who were present earlier pointed out, these players are not altruistic. It is clear that they are particularly hard-nosed and out to make as much money as possible for their shareholders.

Are our guests stating the elements of the retail sector in Ireland which work with both primary and secondary producers operate on the basis that the relationships involved are equal? Are they saying none of those in a fairly dominant position has succumbed to the temptation to refuse to buy goods from certain producers, thereby leaving the latter with nowhere to go? Are they stating there has been no abuse of their very dominant position by some of the big processors, in particular? Are they informing the committee that the position is good and that the Minister, Deputy Richard Bruton, does not need to introduce legislation to try to restore a balance among primary producers, small food producers, processors and retailers?

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