The agri-food regulator has begun legal proceedings against a business in the agri-food supply chain in relation to an alleged breach of an unfair trading practice.
The regulator has not identified the firm concerned or the sector in which it operates.
"The Regulator encourages any supplier of agri-food products who feels that they may have been or are subject to an unfair trading practice to contact them," the regulator said in a statement revealing the move.
It also said that it has carried out its first on-site compliance inspections under laws passed last year.
"These inspections seek to ensure that the policies and procedures, systems, internal control mechanisms and arrangements relating to unfair trading practices, and any mechanisms to address deficiencies, in a business are in compliance with the 2023 Act and associated Regulations," it added.
In an update on its activities following the recent publication of its four-year strategy, the regulator said such inspections will continue throughout this year.
It also said that targeted risk-based inspections will also be carried out.
The body, which was formally established at the end of last year, also said it had started engaging with businesses in the egg sector supply chain early this year with a view to publishing an analysis of information about price and market data.
It said it began a consultation period on March 12th and issued a specific data request on April 30th.
"While I acknowledge and welcome the engagement that has occurred from all businesses from whom the Regulator requested data, unfortunately, not all retail businesses have yet provided the data requested," said Niamh Lenehan, CEO of the regulator's office.
"As a result, it has not been possible for the Regulator to produce the type of report that was envisaged at the beginning of this process."
However, the regulator has published an initial report on the egg sector which is based only on data that is already publicly available.
"The Regulator will continue to engage with the businesses involved in the egg sector in the coming weeks and, particularly with those which have not provided the requested data, with a view to supplementing the report being published today as soon as possible," added Ms Lenehan.
"The Board will be updated on this work at its next meeting in early September. Depending on progress, the Board will consider next steps."
The report found that prices paid by consumers for eggs remained relatively flat until February of 2022, when Russia’s invasion of Ukraine began, before increasing 25% up to January 2024.
Poultry feed had already risen steadily in price up to December 2021, but there was then a sharp increase of 25% over five months following the outbreak of the war, which pushed raw materials higher.
Electricity prices also doubled relative to January 2021 levels by December 2022, the report said.
It added that the agricultural output index overall has also seen a considerable rise, increasing 40% on 2021 levels.
The regulator has responsibility for providing market analysis and transparency on business relationships between farmers, processors and powerful multiples who buy their produce, and with stopping unfair trading practices.
For many years farmers and small food producers have complained the prices they are often paid are inadequate for them to make a living and undervalue their produce.
