Beef sector sustainability
Deputy Stanley highlighted supermarket profit margins and dominance in the beef market, arguing that farmers were not getting a fair return. The Tánaiste said the sector needed change through the beef forum or task force and that many of the issues would have to be addressed collectively and at EU level.
The programme for Government contains a commitment to bring about sustainability in the beef sector. According to leaked documents from the supermarket industry, which contain startling information, supermarket chains are taking up to half of the retail price in profit. They have average profit margins of between 20% and 45% on fresh meat and fresh beef, of between 30% and 33% on round roast beef and of 34% on a leg of lamb. Three supermarket chains are in a dominant position because they control 75% of the market. We have spoken previously about processors. The Tánaiste will know from his former role as Minister for Agriculture, Food and the Marine that one big player, in particular, is dominating the processing end of things. The three leading supermarket chains that control 75% of the market are making profits. Meanwhile, the farmer who has the animal for two or three years makes a loss of up to 60 cent per kilogram. The supermarkets are making up to 50% profit. This is a ludicrous situation. I put it to the Tánaiste that we need legislation on price transparency. I would be happy if the Government and other Opposition parties would support the Bill I have tabled in this regard. It would bring the supermarkets into the price transparency loop. The retailers need to be brought into the beef task force immediately. There needs to be transparency about the prices and the margins they are getting for their produce.
Comment on this
We both know that the beef sector needs to change. That must be brought about through the beef forum or the beef task force. It would be very helpful if all players were involved in contributing to the beef task force as a way of ensuring this country's beef sector has a sustainable future. Dealing with retailers is not as straightforward as the Deputy might suggest. Retailers purchase for multiple markets and not just for the Irish market. Some 90% of Irish beef has to find a consumer and a buyer outside of Ireland. Many of these things need to be done at EU level, or else at a level that is agreed between retailers, producers and processors. It is a complex discussion. Given the scale of the beef sector in Ireland, we need all players to contribute constructively to a beef forum that is looking to restructure this industry in a way that will allow primary producers of beef to gain a fair margin for the work they do.