Oireachtas Joint and Select Committees

Tuesday, 26 March 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Groceries Sector: Discussion with Musgrave Group and Tesco

3:15 pm

Photo of Pat O'NeillPat O'Neill (Fine Gael) | Oireachtas source

I welcome Ms Clancy and thank her for her presentation. I compliment the Musgrave Group on its support of Irish food and, in particular, Irish meat. The company's own brand milk is 100% Irish as well and that is welcome in the context of the support of Irish suppliers. It is important that this continues because the group has 700 stories under its different brands. While SuperValu and Superquinn are regarded as large chains, Centra shops are important in rural Ireland.

When the shop and post office close in any village in rural Ireland suddenly there is a void and the village does not appear to be a village centre any more. I compliment the witnesses on keeping the Centra brand in operation and supporting local shopkeepers. Musgrave has developed its own brand and in the past three years has delivered €290 million in price reductions, yet Ireland's food costs are 17% to 18% higher than the EU average. Do the savings of €290 million mean that the primary supplier is squeezed on price, especially in the fruit and vegetable area, given that in recent years there has been no increase and supermarkets are using fresh products and prime Irish beef and prime Irish lamb as market leaders and loss leaders to attract people into their stores? What percentage of sales are own-brand products since the development of the brand? I compliment the company on its support for Irish products and Irish communities in respect of sponsorship of the Tidy Towns and of the hurling championship when, most years, it gives Kilkenny men the McCarthy Cup. Is the saving of €290 million at the cost of the primary producer?

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