Mr. Miche?l McDonnell:

I thank the Chairman. I am making this statement on behalf of Mr. Vincent Roddy who had Covid last week. I am taking his place in making this submission on behalf of INHFA on the general scheme of the Bill.

We welcome the opportunity to make this submission on an issue of major importance to farmers and the consumer. Unfortunately, in making this, farmers and the consumer have over time seen their influence diminished in favour of ever-increasing profits for our major supermarkets and the larger multiples. In a society driven by perception rather than facts, consumers have been sold on the myth of a cheap food policy that is also sustainable. This myth ignores the financial and environmental costs of producing food while promoting waste and driving poverty.

At all levels of society, and especially with regard to our workforce, there is legislation in place to ensure workers are not exploited and are guaranteed a minimum level of pay through a minimum wage. Unfortunately, this principle does not seem to apply to our farmers and food producers. While someone stacking shelves in a supermarket is guaranteed a minimum payment, the same supermarket will wilfully exploit farmers, safe in the knowledge that there is no legislation in place to prevent this. As a consequence of this, we have seen an exodus from agriculture and potential young farmers not committing to an industry that cannot deliver any level of certainty. For those who remain in the industry the ever-increasing demands placed on farmers are clearly a factor in farm accidents and fatalities on farms.

All of this is a damming indictment of legislation, both in Ireland and across Europe. Our hope is that the committee members and other legislators care enough to address this and maybe this process can be a critical first step.

I turn to outline what needs to happen. The following are proposals the INHFA maintains can make a positive impact if applied. Outlined in the Bill are proposals to establish an office for fairness and transparency in the agrifood supply chain. This we fully support and maintain that as part of its remit it will be tasked with the role of establishing the ongoing cost of food products. It should consider all input costs for farmers and other primary producers, including fixed costs and insurance. It should allow for a fair profit margin for food producers. Once we have an ongoing price index for the cost of producing all foods we will be in a much stronger position to identify and prevent below-cost selling. This new office should also have the power to prevent supermarkets from using any food product as a loss leader. We need to reassess conformity with regard to certain food products. An example includes the size and shape of certain vegetables, the colour of eggs, and so on. By applying stipulations around conformity, farmers are losing out on products they have produced but are unable to sell. This costs money and also contributes to food waste, which is a huge issue. We are aware that food production uses significant resources such as land, water, energy and fertiliser. Food waste, which equates to approximately 1 million tonnes of food annually in Ireland, is also a waste of these natural and valuable resources.

In recognising that since 2016 supermarkets are banned from demanding payment from suppliers for promotions and shelf space we need to ensure adequate resources for the Competition and Consumer Protection Commission, CCPC, to ensure the laws around this are being enforced. Giving the new office for fairness and transparency in the agrifood chain control over this is another option that should be considered. We also need a national and European awareness campaign explaining the important role of food production and the need to respect and acknowledge food producers' basic right to a fair price that reflects their costs and their work. Any such campaign should include our schools and all education centres. It should also focus on food waste, the quality of our food products, and why some foods such as organics cost more. Will this still be the case in the next CAP when we are going to increase organics by three times, from 2% up to 7%, or are we going to have a realistic market for this produce? That is another huge issue we are going to see. It is vital that we have farmers' representation on this committee so we can get a real voice for the issues debated. After all, it is farmers' income that is at stake.

The establishment of the new office to regulate and control fairness in the food chain is a positive step. It will need to be adequately resourced and have enough power through legislation to act.

Politically, as the price of food increases, this office may become an easy target for the multiples in their determination to maintain the status quo. We feel that this should not happen. We have outlined clear proposals that if implemented can ensure the shoddy practices driven by the multiples and larger supermarkets are brought to an end. In addition, our proposals, through the awareness campaign, can enhance the role and perception of farmers and other food producers who perform the most basic but essential role for all of society.