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

3:45 pm

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael) | Oireachtas source

I thank the representatives for appearing before the joint committee for what is an important dialogue and debate. As most of my questions have been asked I will not go over old ground. In her presentation, Ms Clancy said that any code to be introduced should protect both supplier and retailer in a fair and balanced manner. Does she believe the relationship at present is fair and balanced? The Musgrave Group is slightly different. It has a different model and has various arms and perhaps many people in the middle. Does that lead to a point where the group has a greater margin expectation because of having more people in the middle who have to get a cut? Much has been said about competition in the grocery sector. I know the witnesses will touch on that area in reply to questions from my colleagues.

The IFA farm income review in 2012 showed an increase in product price but that increase was outstripped by an increase in input costs. I accept Ms Clancy's point that the group buys beef directly from Kepak and does not deal with the producer. In some instances the group deals directly with the producer initially. Does it have cognisance of the input costs on the producer and a bottom line in that regard?

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