Musgrave Digging A Grave - Farming | farming news | cattle prices | ifa

Musgrave Digging A Grave

Written by Donald Cronin

Monday, 31 March 2008

Farmers from all over Ireland and especially Munster turned up at the head offices of the Musgrave Group in Cork today to protest at the aggressive discounting of prime meat products by SuperValu and Centra. Following three hours of discussions with Musgrave senior management, IFA representatives reported to the farmers on progress made. However the farmer’s frustration and concerns was not allayed and the protest went ahead. Mr. Padraig Walshe, IFA President who addressed the protest said SuperValu and Centra were perceived as strongly Irish and part of the local community and it was galling for farmers to witness prime food being used as a loss leader in the battle for customers between the supermarkets. “Aggressive discounting with two for the price of one when pig farmers cannot cover the cost of production is a clear abuse of retail market power that is forcing producers out of business”. He was speaking in the latest phase of IFA’s continuing campaign for ‘Honesty in Food Pricing’.

Mr Walshe highlighted the fact that “Retailers are engaged in a vicious price war, splashing half price meat offers across the Sunday newspapers in an on-going race to the bottom which is destroying the livelihoods of pig producers and the livestock sector”.

Pig producers are currently losing €25 on every pig sold. “The Musgrave Group has the Irish pig industry in an iron grip and has taken no responsibility for the livelihoods of the 7,500 people employed in the sector. The average Irish pig farmer has now built up losses of €100,000 and producers are facing bankruptcy on an unprecedented scale with accumulated losses of over €42 million.”

The Chairman of the IFA Pigs and Pig meat Committee, Michael Maguire said, “We are telling Musgrave’s that selling our product as a loss leader is driving Irish pig producers out of business”.

“The figures speak for themselves; pig producers receive just 18% of the retail price with retailers and processors pocketing the other 82%. Just over 15 years ago the producer received 35% and this figure has been dropping ever since. This situation has to stop. Only if pig producers receive a fair share of the retail price can consumers be confidant that Quality Assured Irish pig meat will be available going forward”.

“Many SuperValu and Centra stores are located in rural Ireland and must support Irish farm families who have been their loyal customers for many years. Musgrave’s may stock Irish product but if they are willing to sell it for less that it can be produced for, Irish farmers have gained nothing”, concluded Mr Maguire.

[ Back ]