Dan Boyle (Cork South Central, Green Party)
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Question 8: To ask the Minister for Agriculture and Food if her attention has been drawn to the fact that in 1997 an agreement was reached between farmers, large retailers and her Department which would require that farmers received 48.3% of the final retail price as a minimum to ensure viability for farm families; if her attention has further been drawn to the fact that the percentage of retail price going to farmers is as low as 35%, even though the retail price has increased in some cases; and if she will take steps to curtail the number of special offers which shops use to force the price which growers receive down further. [1936/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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My Department was not involved in the setting up or the implementation of any agreement between large retailers and farmers to provide a minimum percentage of the retail price to the growers.

The prices received by producers and obtained in retail establishments are determined by the marketplace. The level of supply of a certain product, competition within a sector at both producer and processing level and consumer demand influence the final price received by the producer.

Similarly, the price paid by the consumer is dependent on a range of influences. The location of retailers, transport costs, the degree of processing and refinement of the product and other factors all have an impact upon the final pricing of foodstuffs.

It is also important to note that there is a range of market support regimes in place as well as a system that provides substantial direct income supports to farmers. The recent reform of the CAP and the introduction of full decoupling in certain sectors will allow farmers to concentrate their efforts on producing for the market and increasing their focus on competitiveness, quality and the type of product which delivers the best returns to producers.

The use by retailers, large and small, of special offers is a commercial matter within their own responsibility, provided there is full compliance with existing legislation such as the Competition Act and the Groceries Order.