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

4:25 pm

Mr. Ian Allen:

I wish to clarify the point raised by Deputy Pringle on the €290 million. That consists of a number of different categories of product. International branded products often invest in the promotion of their products and that is included in the sum of €290 million. When it comes to fresh food produced in this country, such as beef, potato and sprouts at Christmas time, for example, we agree a seasonal price with our supplier who goes back to the primary producer to agree a price and that price is fixed. If we promote thereafter, for example, beef, irrespective of what happens at the farm gate in terms of whether prices go up or down, we will still promote the product and fund the investment. The €290 million consists of both scenarios. Suppliers support investment on the branded side but when it comes to fresh food it is predominantly Musgrave that invests in it. Pricing for fresh food is seasonal or based on fixed six-monthly or yearly prices.

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