McGuinness seeks European action on supermarket buying practices

By Ray Ryan

Saturday, November 21, 2009

THE European Commission has been urged to tackle the problem of those who rely on the major supermarkets to sell their produce, but who have no power to influence the price or conditions of trade.

Ireland East MEP Máiréad McGuinness said farmers are particularly vulnerable. They are price -takers not price-setters and very often have no choice but to sell at a loss and then wait for long periods of time to be paid for their produce.

She said the pressure on producers in the fresh produce sector is especially severe. They are desperate for some level of political intervention on this issue.

"Their backs are literally to the wall and they are powerless to protect themselves. Given that this is a pan-European problem, it will require solutions to come at EU level," she said.

Ms McGuinness said the European Commission will present a paper next year on the market monitoring of the retail sector which will analyse buying practices of supermarkets.

"I will be demanding that the Commission looks at the implications not only for consumers but for all actors along the supply chain.

"Getting a clear view of the real world of producer /supermarket relationships is very difficult as producers are fearful of speaking out," she said.

"There is a sense in which many producers are pushed into being whistle-blowers, knowing that by speaking out they risk being dropped as suppliers but they are also aware that maintaining the status quo is not an option.

"We need more ethics and standards in the business relationships and it is up to the European Parliament to give the lead in this area. If we allow the situation to continue, it will in the long run be damaging to the interests of consumers."

This appeared in the printed version of the Irish Examiner Saturday, November 21, 2009