The row between Lidl and the IFA over milk labelling has brought the whole concept of own branding into focus. Farmers, we are constantly being told, are getting too small a proportion of the final retail price of food and their bargaining power in the food chain is too small relative to the strength of their customers.

Given that in most western countries, three to five supermarket groups control upwards of 80% of grocery sales, we shouldn’t be surprised at the differences in bargaining power.

Farmers, even co-ops, are not going to be able to redress the imbalance by themselves – if there is widespread political acceptance of the unevenness of power, then legislative change must be implemented.

There are two avenues that should be considered. The first is to bring back the prohibition on below cost selling. We have seen too many examples where staple food products are used as loss leaders as a ploy to get consumers into a store.

Once inside, attracted by the low price on a few necessary items whose prices are known, the consumer will be tempted to buy other more profitable lines.

The only people to suffer are farmers and possibly processors, who inevitably come under pressure from other retail customers to reduce their prices so that they are not undercut by the original seller of below cost goods.

It has never been clear why this legislation was abolished, but it certainly seems appropriate to re-examine it.

The other area relates to own branding, where the identity of the producer – whether a farmer or processor – is hidden from customers. This is the ultimate in handing over power in the food chain to the retailer. No opportunity is given to the producer/processor to establish their own credibility with customers and often large retailers will have the same processor sell their own identified product, while at the same time selling an own brand version at a reduced price.

Understandably, the customer will see little or no difference between the two products and the market share of fully identified product will decline. We have seen this happen numerous times, but liquid milk is one of the stand out examples.

The Irish negotiators should instigate a concerted examination of the own branding issue and its effect on farmers at EU level.