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

Mr. Eddie Doyle:

Potato growers would have some problems that are similar to those outlined, but a lot of potatoes are not traded directly to supermarkets but through facilitators. We have had our own specific problems in this regard. Some of the facilitators have arrangements with growers.

They might have a corps of growers but outside that corps they buy mostly on the open market, or free buy.

Producers have been treated very badly. We have had huge crops because of the good weather for the past few years. Growing conditions across Europe have been very favourable leaving us with crops bigger than anyone would have expected. High prices in 2012 because of the atrocious weather in that season encouraged some growers to come back into the industry. We have had a few people growing over and above what they should grow. It has led to very poor market conditions. We are struggling to get through this year. Potato growers are resilient and the good people who have been in the business for years will come through.

Deputy Barry said we should not be taking land and planting our crops at such high prices. It is a valid point. We in the IFA try to make that point to growers and for the most part they are very responsive. We are getting to grips with the potato problem. We have a promotion which will go ahead in September and will be very beneficial to the industry. It will help improve sales, which have been affected by pasta, rice and so on. Every other carbohydrate on the market is promoted as better than the potato, which sadly it is not. Our promotion aims to change that and bring the potato back to its former importance in the household. We work hard on this. An Bord Bia and the merchants are involved too. The IFA is pushing it and the Department of Agriculture, Food and the Marine is very helpful.

One speaker mentioned labelling but unless we have the legislation behind labelling we will not get anywhere. We can label but it might only be down to a little stamp on the corner of the carton before one recognises where the product comes from but the consumer does not have time for that. We need labelling.

The own brand selling is doing equal harm to our industries in agriculture. Lidl, Tesco and Dunnes Stores do not produce milk. Legislators could take this on very easily. The name of the producer of that item should be given equal space on the carton or package. Let Tesco, Lidl or Aldi put their names on it but we have to get equal space. That must be taken into account.

This issue would be easier to address than below cost selling although it is urgent to address that. The incessant and relentless pressure of promotions has driven us into the ground. Someone asked how many are left in the industry. I would not be able to give numbers on the spot but there are only five or six left in each category of vegetable. We can put the growers for each code in the country in a car and take them to a meeting. That is how I see it. It is why the supermarkets readily support us but their way of supporting us is to get quotes from our competitors and force the cheapest quote on us, regardless of whether we put it in or not. They are not doing anything illegal but a tender is not a tender when they force a grower down to the cheapest price. The dunce is running the class in many events in the vegetable industry because the supermarkets have forced us into an unsustainable position. We are at the last gasp coming in here to speak to the committee.