Joan Burton (Dublin West, Labour)
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Question 66: To ask the Minister for Agriculture, Fisheries and Food the proposals he has put forward with regard to improving transparency and costs in the food chain to ensure a fair return to suppliers and producers; and if he will make a statement on the matter. [26047/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The issue of retail margins on food products and prices paid to producers have become a focal point of public debate in recent times, and this has been reflected in numerous fora both at home and abroad. I had an opportunity to discuss this recently with my EU counterparts at the EU Council of Ministers meeting at the end of May and it is obvious that this is not just an Irish issue but an EU and indeed international issue. Underlying the debate is the increasing concentration of retail power in the hands of large supermarket chains. This international phenomenon has fundamentally changed the balance of market negotiating power within the food chain. It is recognised by all that retailers must strike a reasonable balance between giving competitive prices to consumers and providing a fair return to suppliers and producers, this should not be done at the expense of either of the parties.

Arising out of the aforementioned recent discussions at EU level, Commissioner Fischer Boel had indicated that the Commission will undertake a review of competitive practices in the food supply chain, with a particular focus on the dairy and pigmeat sectors. They are also undertaking a wider review of the retail sector, and both reports will be completed by the end of the year.