Thomas Lyons 
Fresh produce growers in Ireland have expressed their concerns to Minister of State Pippa Hackett about the pressure they face from retailers to offer the lowest prices. Members of the Horticulture Industry Forum, an umbrella organisation for fresh produce growers, told the minister that retailers are not taking into account the environmental benefits of locally grown produce. They also highlighted the fragility of the supply chain in Ireland and the fact that around five multiple groups control more than 90% of the retail market. The forum warned that fresh produce growers are in a weak position to bargain for a fair price, as many are competing with each other and often only have the capacity to supply one of the supermarket chains.
Minister Hackett, who is responsible for land use and biodiversity, expressed her concern over the current position that growers are dealing with in relation to retailers. She said that there is a real need to engage with retailers on their long-term intentions to support local horticulture producers through sustainable pricing to ensure the viability and growth of the sector. The minister plans to seek meetings with all major retailers, together with Peter Donnellan, the new chair of the forum, to discuss the issues facing growers in Ireland. She also encouraged all growers to contribute to the consultation on the new draft National Strategy for Horticulture, which is currently open for public consultation.
According to a report compiled for the Department of Agriculture, Food and the Marine (DAFM), the horticulture sector is the fourth largest sector within agriculture and had a farm gate value of €467 million in 2020. However, figures suggest that there has been an exodus of growers from the sector due to a number of key issues, including input costs and the price that retailers are willing to pay local growers for their produce. Minister Hackett has insisted that there is now an opportunity for growers to help shape the future of their sector and work together to grow a more profitable value-added sector driven by sustainability and innovation.
The concerns raised by Irish growers are not unique to Ireland. In many countries, small-scale growers struggle to compete with large retailers that have significant bargaining power. Retailers are often driven by the need to offer the lowest prices to their customers, which can put pressure on growers to reduce their prices. However, the environmental benefits of buying locally grown produce are increasingly being recognised, and retailers are starting to take this into account when making their purchasing decisions. Sustainable pricing that takes into account the true cost of production, including the environmental benefits of locally grown produce, could help to support small-scale growers and ensure the long-term viability of the horticulture sector.
In conclusion, the concerns raised by Irish growers about the pressure they face from retailers to offer the lowest prices highlight the need for a more sustainable approach to pricing that takes into account the environmental benefits of locally grown produce. Minister Hackett’s plans to seek meetings with major retailers to discuss the issues facing growers in Ireland are a positive step towards finding a solution to this problem. The draft National Strategy for Horticulture, which is currently open for public consultation, also provides an opportunity for growers to have their say on the future of their sector. By working together, growers and retailers can create a more profitable value-added sector driven by sustainability and innovation.
