Most of Ireland's food suppliers (96%) say Tesco's policies will damage their ability to do business while 93% of suppliers say the space allocated to their brands in supermarkets has been reduced recently.

This is according to research carried out by advertising agency Irish International among Irish 'fast moving consumer goods' food suppliers.

The majority of those surveyed (96%) of food suppliers hold the view the Government has done too little to help them.
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This follows comments in the Dail last week by the Minister for Agriculture, Fisheries and Food, Brendan Smith. He said that 'a fair return to suppliers and producers is essential to the maintenance of thousands of Irish jobs and the survival of primary producers'.

Irish food businesses are also worried about the impact this has further afield.

97% of food suppliers surveyed said that Tesco's policies will have a negative impact on the Irish economy with 93% of the view that they will damage the ability of Irish brands to compete at home and abroad.

All food suppliers said the changes in Tesco's practices are going to put pressure on other retailers to review their own trading terms and conditions.

Amid debate as to the importance of consumer choice in the super-markets, 66% of suppliers surveyed say these moves are not in the best interests of the Irish consumer. 89% of respondents say Ireland will eventually become another UK trading region.

Tánaiste Mary Coughlan is currently examining proposals for a code of conduct to regulate the relationship between suppliers and retailers. She has said that any retail company making a profit and sustaining a business should grant price reductions to consumers as well as giving a fair return to suppliers.

Source: RTE.ie