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Race to the bottom in grocery prices must be prevented warns Minister

Written by Robert McHugh, on 2nd Dec 2016. Edited on 5th Dec 2016 Posted in Agriculture

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The Minister for Jobs, Enterprise and Innovation, Mary Mitchell O'Connor has this week warned that recent international political developments have caused considerable challenges for the Irish agri-food industry and that Ireland risks promoting a ‘race to the bottom’ on food standards and prices.
 
Speaking at the Irish Farmer's Association Seminar on Wednesday, the Minister warned that one specific challenge is the issue of alleged unfair practice in the grocery value chain. O' Connor also spoke about how the exit process will have implications for tariffs and trade, regulations and standards, customs controls and certification.   
 
The UK’s decision to leave the EU presents enormous challenges for the entire Irish agri-food sector particularly beef where the UK accounts for some 50% of exports. There are approximately 100,000 Irish jobs directly linked to UK exports. 

Minister O'Connor commented, "Farmers sell a perishable product and don’t have the time or the market power to negotiate effectively on the food chain. This is what needs rebalancing. Otherwise we risk promoting a ‘race to the bottom’ on food standards and prices. That goes against the high value food brand that Irish agriculture wants to trade off. It’s not how we want to do business in what is a vital strategic sector for the country. I view the our groceries goods regulations as a way of tackling this race to the bottom."

Source: www.businessworld.ie

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