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Farmers criticise supermarkets' potato margins

Supermarkets - Growers only get 20% of price, says IFA
Supermarkets - Growers only get 20% of price, says IFA

The Irish Farmers' Association has again criticised the leading supermarkets over food prices - this time over the cost of potatoes - accusing large stores of paying farmers only 20% of the retail price.

However supermarkets say farmers should not ignore the costs of running large stores.

For the past few weeks the IFA has carried out a campaign against supermarkets accusing them using food as a loss leader, selling below the cost of production, and putting the livelihood of farmers at risk.

The morning the IFA said potato growers are being squeezed by supermarkets with farmers getting as little as 20% of what the consumer pays.

Near some stores today, growers have been selling potatoes at the price they receive from the big supermarkets.

IFA President Padraig Walshe said there is no processing involved with potatoes and supermarkets are not paying anywhere near a fair price to potato growers.

Retail Ireland, the IBEC group representing the supermarkets, said a Forfás report has shown that Irish consumers of fruit and vegetables get good value for money, and quality and choice from retailers.

Torlach Denihan said supermarkets rarely purchase directly from individual farmers.

Mr Denihan said it was not valid to compare the price paid to farmers with the consumer price because supermarkets have to pay the costs of running a shop including staff, security, cleaning and so on.