Oireachtas Joint and Select Committees
Thursday, 18 April 2013
Joint Oireachtas Committee on Agriculture, Food and the Marine
Groceries Sector: Discussion (Resumed)
9:50 am
Mr. Niall O'Connor:
The position on liquid milk is similar for a significant number of commodities. Aldi engages on a daily and weekly basis with suppliers. We also undertake an annual tender programme for every product in our business. We do not use the programme to find new suppliers or switch supply but to validate the cost of the raw material of a product in the market and ensure we are getting value for money that we can pass on to the consumer. We do not get into discussions on the relationship between our suppliers and producers. What we try to do is ensure that if one of our factories or suppliers indicates to us that a cost increase is required, we will sit down and negotiate, understand the reasons, validate the level of the cost increase and arrive at a mutual agreement in order that ongoing supply is maintained for our customers. This is a fair way to operate. As I stated, we do not get involved in the relationship between the factory and producer.
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