Oireachtas Joint and Select Committees

Tuesday, 21 May 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Groceries Sector: Discussion (Resumed) with Fresh Milk Producers

3:15 pm

Mr. Donal Kelleher:

The discounting of milk is a disease. Somebody decides to have a special offer and sells milk at €1.29 or whatever to get footfall. The problem is that if such an offer lasts for one week, other retailers wonder if they should follow. They may decide to do so two weeks later, and tell processors the wholesale price is not sustainable because they have to follow the downward trend. The next thing that happens is that the whole market collapses. We are then hauled in to be told the prices we have agreed will have to be reviewed because the market has moved from X to Y and there is a problem. Ultimately, we end up paying the price and if we say anything about it we are again hauled over the coals.