Multiples Demand For 40% Price Cuts May Put Organic Producers Out Of Business

The Irish Organic Farmers & Growers Association (IOFGA) reports that the multiples are now seeking price reductions of up to 40% from their organic suppliers. If this is enforced by the market power of the multiples, many small organic suppliers will get into financial difficulty. No organic producer is making a margin of anything like 40% and the option they face is to supply at a loss or stop dealing with the multiples completely. In some cases the multiples represent a major share of their total sales. An example of this is JJ and Dan Ahern who are the largest producers of organic poultry in the Republic of Ireland. They have been informed by the processor of their poultry who supplies the multiples that the multiples are now demanding a 40% price reduction. They are threatening to delist them and import organic chicken if this reduction is not given. The over concentration within the Irish retail sector which has been allowed to develop means that there is a real possibility that a large number of Irish owned small food businesses will be forced to close down or let go staff.

JJ Ahern commented, ‘This will be the death knell of Irish organic poultry in supermarkets.’

Kate Carmody Chairperson of IOA stated ‘The time has come for all of us as Irish people to consider whether we want to support our neighbours in producing quality organic food in this country. If we want a vibrant local economy we must support it by our purchasing decisions. Most of us can afford to do this if we choose, even in the recession. Buying seasonal, local, organic food is quite simply better for us, our environment and our economy. When we shop, we can all make a small but significant difference to pulling the country out of its current difficulty and supporting our friends and neighbours in retaining their jobs. The choice is ours. We are urging our members and communities across the country to support the local farmers and food producers in their areas by buying local, buying Irish, buying seasonal and buying organic. If this type of food is not available in your local supermarket let the manager know that you want these products to be available and source them elsewhere. Now more than ever, we also need to support local farmers markets, box schemes, local bakeries and local artisan food producers to ensure the big retailers don’t totally dominate the market. With many aspects of the economy in decline, the development of a strong local food economy is one of the areas that offers real prospects for the development of a healthy, sustainable and resilient economy in the future. Every time we shop we can help make this happen ’

Note to editors

The Irish Organic Association (IOFGA) is the largest organic certification organisation in Ireland representing approx 1,000 farmers, growers and processors. It is responsible for certifying the organic provenance of its members produce and the IOA symbol indicates that a product has met the highest standard or organic integrity. IOA also works to inform the public about the benefits or organic food and to support the development of organic food production in Ireland. Further information on IOA is available on www.iofga.org. IOA publishes six times a year its popular magazine Organic Matters. Articles from back issues of the magazine may be found at www.irishorganic.ie

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For further information contact:

JJ Ahern 086 828 5605

Kate Carmody tel 086 8239582

Issued by John O’Neill Tel 087 612 5989 or john.oneill@iofga.org
Urlabhraí le gaeilge ar fáil – 087 612 5989