A number of supermarket chains accused by the Irish Farmers' Association (IFA) of predatory pricing and selling food as a loss leader, have together rejected the allegations as groundless.
The farming organisation yesterday placed advertisements in the national media naming Tesco, Superquinn, Aldi and SuperValu as companies involved in the practice. It launched what it called a "Campaign for Honesty in Food Pricing" and said "while supermarkets keep their margins, discounts come straight out of the farmers' pocket".
However, Torlach Denihan, director of Retail Ireland representing Tesco and Superquinn, described the allegations as groundless and issued a challenge to the IFA which he said ignored the consumer. "If the IFA have any evidence of predatory pricing they should bring it to the Competition Authority immediately," he said. "The IFA ignores the consumer, but the retail sector cannot as it depends on the consumer for its very existence," he said.
"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," he said.
A statement from Aldi Stores (Ireland) also rejected the claim it was exploiting farmers in its current special promotions on meat, fruit and vegetables and said the company, not farmers bore the cost of these promotions.
"These promotions are providing great value on fresh food to Irish customers, and Aldi is paying normal prices to its suppliers, including Irish farmers and processors with whom it has long established relationships, for this produce," it said.
"The cost of the promotion is not being borne by farmers or growers. Claims to the contrary are absolutely misleading and are contrary to the interests of consumers and to competition in the Irish retail market," it went on.
It outlined its current promotions of fruit, vegetables and meat saying all its Nature's Isle fresh beef, pork and chicken was sourced entirely in Ireland and said the customer reaction to the promotion had been extremely positive.
A statement from Musgrave on behalf of the SuperValu and Centra groups said 75 per cent of its entire range was either produced or manufactured in Ireland, representing a commitment to Irish suppliers of more than €2.3 billion. "Given this investment and our focus on providing top quality Irish produce to consumers we have a vested interest in ensuring the sustainability of the Irish agricultural sector and are committed to ensuring that Irish farmers get a fair price for their produce," it said.