The latest business monitor from Food Drink Ireland (FDI), the Ibec group that represents the sector, has been released today.
The report highlights the importance of effective and efficient enforcement of fair trading grocery regulations aimed at addressing the major imbalance in the relationship between grocery retailers and suppliers.
The monitor shows that food prices continue to fall, decreasing by 2.5% in the year to March. Additionally, food retail sales are increasing but value is lagging volume growth.
Employment levels continue to increase and the labour market is tightening with unfilled vacancies at twice 2011 levels.
The monitor indicates that the slight strengthening of sterling had a positive impact on food exports to the UK which increased by over 4% in both January and February compared with the same months in 2016.
Commenting on the report, FDI Director, Paul Kelly said, "Unfair practices faced by food suppliers that impact their costs are not only bad for business and individual suppliers, but ultimately they are also bad for consumers. The new Grocery Goods Regulations, which came into effect one year ago, aimed to address these issues and the unfair demands being put on suppliers. These include a failure to respect contractual terms, de-listing threats and off-invoice deductions without sound business reasons."
He added, "Suppliers need to have certainty in respect of the risks and costs of trading, a key principle enshrined in the legislation that established the Grocery Goods Regulations. Consumers are best served by a grocery market that is both fair and competitive, one that offers choice and convenience, and provides an outlet for new products and suppliers."
Source: www.businessworld.ie