Oireachtas Joint and Select Committees

Tuesday, 21 May 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Groceries Sector: Discussion (Resumed) with National Milk Agency

4:35 pm

Mr. John Foster:

I represent on the board the interests of RGDATA, which is the small-retailers organisation. RGDATA made a submission to the joint committee in March. We have spoken about the three main players in retail who have an 80% share of the market. We spoke in an earlier report about the fact that grocery prices are 18% higher in Ireland than in the United Kingdom. Given that they have an 80% share of the market, the three main players must take much of the responsibility for the fact that prices are higher here. I very much accept Mr. Kilcoyne's point that the profits should be revealed. There is no doubt that a great deal of the money is leaving the State.

Next time there is a milk war, the first thing members should do is to walk down the minerals section of any large supermarket and look at the mixer shelves. When the price of milk goes down, they will see the price of tonics and ginger ales increase from perhaps €1.09 to €1.50.

That very same day, whatever is taken off milk and other milk products will be added to another product such as soft drinks. This is a common practice among all stores.

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