Any reduction in farmer margins 'will not be tolerated' as retail price war 'intensifies'
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Poultry farmers "will not tolerate cuts" to their margins as the retail price war "intensifies".
Irish Farmers' Association poultry chairman Nigel Sweetnam has said that supermarkets are "demanding premium product at world commodity prices", but with "little or no regard to producers’ or processors’ costs of production".
These costs are "still substantially higher than the last time we were in negotiations", with the supermarkets around prices, according to Mr Sweetnam.
"We have to be paid properly," he said.
Any reduction in farmers' margins will "inevitably lead to farmers going out of business, as has already happened in the vegetable selector", the IFA poultry chairman warned.
"It will not be tolerated. We will take whatever steps are required to ensure the survival of family farms that are producing quality, affordable, and healthy food in the most sustainable manner," he continued.
"At a time of increasing costs, it is neither realistic nor acceptable to ask farmers to work for nothing, particularly as poultry farmers have such huge investments in buildings and facilities."
This comes as both Lidl and Aldi confirmed price cuts to several of their products this week.
Colin Breslin, managing director of buying and services for Aldi Ireland, said that this latest round of price cuts "will have no impact whatsoever on the costs paid to our suppliers".
"At Aldi, we have a very long and proud history of supporting Irish producers," Mr Breslin commented.
"We’re committed to offering unbeatable value to our customers and maintaining a strong discount versus the full-price supermarkets."
Lidl Ireland's chief commercial officer Kevin Haverty said that "offering the best prices on the market is daily business for Lidl".
"Whilst grocery price inflation continues to slow, we are acutely aware that the cost-of-living crisis continues to pose significant challenges for our customers and our suppliers and we’re working harder than ever to continue delivering our quality products at market-leading prices," Mr Haverty said.
"Lidl Ireland benefits from a growing network of more than 400 Irish suppliers whom we work closely with to ensure we are striking a balance of paying a fair price for top quality products that help us deliver best value for our consumers."
