Follow French move on retail loss leaders: ICMSA

THE Irish Government and European Commission must follow French moves to limit supermarkets from selling food at a loss.

A proposal going before the French Parliament should require food and consumer goods to be priced in supermarkets at least 10pc over the prices paid to suppliers.

The ICMSA’s president Pat McCormack said the proposals should be examined in detail as they would benefit the Irish farming sector.

“Slowly but surely we’re seeing a realisation that we can’t go on just allowing transnational retail corporations that have turnovers equal to the budgets of some smaller states decide our food policy,” he said.

Mr McCormack said the French proposal may not be perfect but it signals that they want to secure the future livelihoods of their farmers.

“The reality is this can only work at EU level and that means that Commissioner Hogan steps up and legislates,” he said.

“They can’t go on selling superb quality food at artificially low prices or using it as a ‘loss-leader’ and wiping out the margins.”

European Agriculture Commissioner Phil Hogan has already highlighted that a “clear imbalance of power” exists between producers and retailers, as supermarkets now have a disproportionate leverage.

He said a properly functioning food supply chain was key and policy measures were being considered at EU level.

The bill aimed at limiting ‘loss leaders’ goes before the French parliament in May, however, consumer groups are complaining it would mean higher prices for consumers.