Oireachtas Joint and Select Committees

Tuesday, 21 April 2015

Joint Oireachtas Committee on Agriculture, Food and the Marine

Horticulture Sector: Irish Farmers Association

2:00 pm

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

I thank the witnesses for coming here today, for their very detailed presentations and for the forthright manner in which it was presented. While bravery may be too strong a word, I acknowledge that it takes some guts when the topic under discussion involves them being critical of the hand that feeds them. The witnesses are here today representing producers throughout the country rather than to talk about specific cases. I have no doubt that the challenges described by them today are being faced by everyone in the industry. I will not repeat the sentiments of those who spoke before me, but they have outlined the position of this committee on this. We are very much at one on this issue.

The witnesses spoke about the challenges that promotions bring and the price volatility that is decimating the industry. I ask them to outline the regularity of such promotions. How often are they happening? Is it once a year or a couple of times a year that one could expect to get a call at short notice? Is there any discussion or leeway on it or are farmers simply told by the supermarkets to supply the product or it will be sourced elsewhere? In that context, what type of contracts do farmers have? Obviously, promotions are over and above the contracts. What form of contract could a producer in the fruit and vegetable sector expect to have? What is the typical duration and what certainties are built into it? Are we seeing a general straying away from contracts or is it that the contracts themselves are not sufficiently robust to give producers the certainty they need to plan into the future and operate normally in the expectation of making an income that would cover the cost of production?

Mr. Foley said that there are issues with regard to the roll-out of producer organisations and I ask him to outline them to us. How does he see them working and what needs to be done to make them work? I completely agree with the points he made about the role of the Competition and Consumer Protection Commission in the future and the importance of the new grocery regulations. These are absolutely key and we will use our influence here to try to ensure they are as robust as possible.

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