Representatives from the IFA pig and poultry committees met with figures from Lidl’s senior management on Tuesday to make the retailer aware of the damage it says has been caused by the practice of price cutting.

The IFA has said that the low-price selling of food undermines the real value of the discounted food products and has a real cost that is borne by the farmer.

Lidl has responded to this claim by stating that the weekly promotions it runs do not affect the price paid to suppliers over the course of the promotion and that all discount costs are borne fully by the supermarket chain.

“Selling a 1.9kg chicken for €3.49 disrupts consumer patterns and does have a cost. To suggest otherwise is utterly disingenuous,” commented the IFA’s poultry chair Nigel Sweetman after the meeting.

“Some retailers have recognised the very severe income difficulties at the moment and they have increased their prices,” Sweetman claimed.

Weekly offers

Lidl responded by saying that the retailer is committed to supplying food to consumers at the best value in the market, with this commitment seen as being more important than ever, given recent increases in the cost of living, the retailer said.

These offers in no way impact the price paid to suppliers

“As with all retailers, Lidl offers weekly offers on various product ranges in order to follow through on this commitment,” the supermarket told the Irish Farmers Journal.

“Lidl will continue to fully bear the cost of its weekly ‘Super Saver’ promotional offers. These offers in no way impact the price paid to suppliers throughout the duration of the promotion.

As we have done in the past, we will continue to proactively engage with and support suppliers in navigating extreme market conditions

“Lidl have clear and transparent contracts and agreements in place with all suppliers.

“As we have done in the past, we will continue to proactively engage with and support suppliers in navigating extreme market conditions as and when they arise,” the statement went on.

The supermarket chain said that it would continue to engage with its Irish suppliers and pledged to “support suppliers in navigating extreme market conditions as and when they arise”.

Time for regulations

The IFA poultry chair went on to criticise the Government for failing to enact legislation that would prevent supermarkets engaging in price cutting activities.

“This heavy discounting of chicken has significant consequences for producers. Unless we have robust regulation of retailers, we will see more and more farmers going to the wall,” he said.

Representatives from the IFA’s pig committee intend on meeting with Minister for Agriculture Charlie McConalogue on Thursday to discuss the situation facing farmers in their sector.