Supermarkets ‘named and shamed’ for predatory pricing

Irish farmers have stepped up their attack on supermarkets, placing newspaper ads naming and shaming those retailers involved in “aggressive discounting”.

On Friday (8 February) ads were taken out in The Independent and The Examiner criticising Dunnes Stores in particular.

“The central message in our campaign is: ‘Farmers can’t produce two for the price of one’,” said Irish Farmers Association president Padraig Walshe.

“The kind of food discounting we have highlighted is putting the livelihoods of thousands of Irish farmers at risk – particularly pigmeat, beef and lamb producers, and potato and vegetable growers.

Mr Walsh claimed that all of Ireland’s remaining 450 pig producers were losing money, ranging from €25 to €30 per pig. At the same time supermarkets were discounting Irish pork by up to 50%.

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The farmer’s share of the retail price of beef and lamb had also been cut, from 40% to 30% over the past decade.

“Farm product prices are up by only 14% since 1990, while supermarket food prices are up by a staggering 42%,” he added.

But supermarket representatives have struck back, rejecting the IFA’s claims as “groundless”.

“If the IFA have any evidence of predatory pricing they should bring it to the Competition Authority immediately,” said Torlach Denihan, director of Retail Ireland.

“Retailers compete aggressively to bring best value to the Irish consumer and make no apology for this. The sector is proud of its efforts to secure value for its customers, notwithstanding the IFA perspective that this is something to be ashamed of.”

Meanwhile, the Ulster Farmers Union has condemned this week’s move by Tesco to sell whole chickens at £1.99 a bird.

“Welfare friendly, quality assured poultry simply cannot be produced in the UK for £2.00,” said UFU president Kenneth Sharkey. “It may be good news for consumers in the short run, but ultimately this type of activity drives local producers out of business.

“The only way to put poultry on the table at £1.99 is to rely on cheap, low quality imports and it is very disappointing to see Tesco take the industry in that direction”.