Farming group accuses supermarkets of making excessive profits on lamb

Ireland's largest supermarket groups have been accused of making large profits on lamb at the expense of both producers and consumers…

Ireland's largest supermarket groups have been accused of making large profits on lamb at the expense of both producers and consumers.

The IFA made the allegation yesterday after its own retail lamb survey found that customers were being charged up to £90 per lamb by the supermarkets, while farmers were only receiving between £36 to £38 per animal.

"The people in between are making large profits on the back of both producers and consumers," the IFA National Sheep Committee chairman, Mr Frank Corcoran, said. "The factories claim margins in their business are at a minimum." Mr Corcoran said he believed this profit was excessive, and called on the supermarkets to return a fairer share of this to producers. "Producer prices are down almost 25 per cent on last year," he said.

A cut in supermarket margins could also allow for a reduced consumer price, which would boost lamb sales, he added.

READ MORE

The IFA checked lamb prices at Dublin outlets of Dunnes Stores, Tesco, Superquinn and Supervalu. Prices for seven cuts of lamb were surveyed on Tuesday of this week. Dunnes Stores was cheapest in four categories and Tesco was the most expensive for two cuts and cheapest in one category. Supervalu was lowest in three and highest in two. Superquinn was highest in one and lowest in one.

As a result of the survey, Mr Corcoran urged the supermarket groups to review their meat pricing policies.

A Tesco spokeswoman said the price difference between what farmers were paid for their animals and what customers were charged for meat was explained by the fact that the supermarket group only sold the prime parts of the animal. Spokesmen for Dunnes Stores, Supervalu and Superquinn could not be contacted last night.