Production tenders were hotly debated at an IFA vegetable growers’ meeting in Rush last week. The subject of tenders is very live following the recent move by Aldi to secure all future supplies of fresh produce by this means.

But the process was described by growers as a “slow death” for producers.

While growers do not favour a tender-based supply system, IFA’s Pat Farrell said that Aldi had taken on board a request that tenders be sought for future rather than current production.

But the system provides no scope for unexpected increases in costs resulting from items such as fertilizer, fuel or labour. Nor is there consideration for the vagaries of the Irish climate.

The tender process was also seen as highly flawed. Tenders are sought on a price-only basis for an unspecified volume of a specific product and then allocated to a number of different growers at the lowest tendered price.

Growers feel that the contract negotiation process for procurement, favoured by many other supermarkets, is a more sustainable way to do this business.

On top of this was an allegation that some intermediaries, known as facilitators, have submitted tenders to Aldi without any agreement with growers.

This is being used to drive the tender process below the cost of production. The IFA has made supermarket officials aware that certain facilitators have submitted growers’ names on tenders without their knowledge or permission.

Growers were particularly angry that Aldi now engages up to five facilitators where two did the procurement job traditionally.

While Aldi endeavours to source as much Republic of Ireland fresh produce as possible, growers feel that their tender system creates an environment where farmgate prices are pushed below the cost of production.

Growers were also displeased by the fact that the quantities of specific products supplied to certain supermarkets appear greater than the production from Republic of Ireland growers.