Growers Carrying the Cost of Cheaper Vegetables
Reacting to the Kantar Worldpanel report this week on price deflation in the grocery sector, Matt Foley Chairman of the IFA Vegetable Committee said that while the retail price of vegetables to consumers is lower than this time last year, it is the growers who are carrying the cost of this.
“In most cases, returns to growers are now at or below the cost of production, leaving no margin for reinvestment, weather issues or variable yields. Supermarkets are very quick to wave the Irish flag and use individual growers for promotion, but it belies the actual real situation” said the IFA Chairman.
“If the major retail multiples in this country are serious about having a sustainable fresh produce sector and ensuring a reliable supply of safe, home-grown food, retailers must show greater responsibility and leadership for their actions.”
“The sector is in on-going decline and without a change in attitude by retailers towards the primary producer, consumers will no doubt pay more in the long-term for imported produce” said Mr. Foley.