The Irish Farmers’ Association has criticised Musgrave supermarkets (SuperValu and Centra) for carrying out an e-auction tender to source egg supplies.
But the Musgrave group responded by saying e-auctions have been used by them for sourcing own-brand eggs since 2005.
The chairman of the IFA Poultry Committee, Alo Mohan, described the e-auction as a blatant attempt to force a beleaguered industry to drop the price of eggs below the cost of production, which is not sustainable.
The process involves suppliers blindly bidding against each other in an effort to secure the Musgrave business. The end result is that a supplier wins the tender at a lower price than the previous year.
Mr Mohan said the IFA are strongly opposed to any scheme to source supplies that puts producers in a situation where they are forced to supply product at below the cost of production.
Musgrave say that electronic e-auction is the purchasing tool they have used for six years for the purchase of all our SuperValu and Centra own brand eggs. Musgrave believes it is a fair and equitable system, which allows new entrants to compete in the market.
It also provides Musgrave with the opportunity to ensure it can get its own brand egg products at the best price possible, to ensure they can continue to deliver the best value possible to the consumer.
A Musgrave spokesperson said that already this year they have given their own brand egg suppliers a significant price increase to reflect the increased cost pressures within their businesses.
