THE IRISH Farmers’ Association has reacted angrily to what its president, John Bryan, described as a “smash-and-grab raid” by the Competition Authority investigating possible milk price fixing allegations.
The raid, which began at 10am yesterday at the Bluebell headquarters of the association, which represents 85,000 farmers, involved 15 officers and a Garda detective and lasted until 4.15pm when the team left taking with them a large number of files.
Mr Bryan accused the authority of attempting to close down the the association on foot of allegations by retailers against farmers trying to make a livelihood in liquid milk.
“It is totally unacceptable that taxpayers’ money is being wasted to target farm families struggling to cope with increased costs and collapsing margins for their milk, while the retail multiples pillage the profits out of the food supply chain, screwing both suppliers and consumers,” he said in a statement.
“Farmers will be disgusted that the Competition Authority is clearly backing greedy retailers and turning a blind eye to their abuse of suppliers,” he said.
He said it is incredible that the Competition Authority would deploy a large team of 15 officers in a “smash-and-grab raid” regarding the supply of milk to retailers, instead of using their resources to tackle the multiples.
“The facts are: the farmer share of the consumer price of liquid milk is at the lowest level ever, and to suggest that farmers have any power over the retail multiples is nonsense,” he continued.
The association’s statement said it had highlighted time and again the inequity in the food supply chain, where powerful retailers dictate the terms and put the livelihoods of producers under threat.
“The Competition Authority continues to ignore the substantial margins enjoyed by the retailers and the lack of competition in the grocery market. Today’s action will be seen by farmers as a direct attack on primary producers, and can be contrasted with the incompetence of regulators in dealing with financial institutions and others who have devastated the country,” Mr Bryan said.
He called on the Government and Minister for Enterprise, Jobs and Innovation Richard Bruton to intervene immediately and put a stop to what he termed “this charade”.
“Regulation to control the predatory behaviour of the retail multiples is long overdue and farmers’ patience on this issue is fast running out,” the statement concluded.
In a statement, the Competition Authority confirmed members of its staff, assisted by a member of An Garda Síochána, had conducted a search of the premises of the Irish Farmers’ Association in accordance with the Competition Act, 2002.
It said under the Competition Act, the authority is empowered to investigate alleged anti-competitive behaviour either as a result of a complaint, or on an own-initiative basis.
Where evidence of anti-competitive behaviour was uncovered, the Competition Authority may bring court proceedings against the parties involved or refer the matter to the Director of Public Prosecutions.
“This search is part of a current authority investigation and therefore it is inappropriate for us to comment on the matter,” said Gerald FitzGerald, director of the cartels division.
The statement concluded by saying the Competition Authority’s role was to promote and safeguard the economic interests of consumers and businesses that are harmed by anti-competitive behaviour.