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Is Irish grower group being wound up following Tesco change?


 
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James Kilkelly
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Joined: 30 May 2006
Posts: 2142
Location: West of Ireland

PostPosted: Fri Mar 06, 2009 1:22 am    Post subject: Is Irish grower group being wound up following Tesco change? Reply with quote

Is Irish grower group being wound up following Tesco change?

Irish producer organisation Dublin Meath Growers (DMG) has denied press reports that it is being wound up after losing its contract to supply Tesco Ireland.

DMG members grow fresh produce from 809ha (2,000 acres) north of Dublin and pack both their own and bought-in produce.

The group had supplied Tesco since the retailer first started trading in Ireland in 1997. More than 90 per cent of its turnover was attributed to Tesco.

Tesco Ireland communications manager Seamus Banim said the contract would run out in March and other arrangements were being put in place with another local "consolidator". "It will have no impact on the grower community," he said.

Read more here.... http://www.hortweek.com/channel/EdiblesProduction/article/887016/Irish-organisation-denies-folding-losing-Tesco-deal/

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Liparis
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PostPosted: Fri Mar 06, 2009 10:10 am    Post subject: Reply with quote

I've seen this happen before, not in connection with Tesco, but others. It's a chicken or egg situation. The customer wants cheap (and no complaint there) the biggies supply it, but the cost is they get producers wrapped into their pricing, they force the producer to cut prices way down with lucrative deals, quality is compromised to keep the price down then the producer gets blamed for lack of quality. The chain doesn't want the reputation they are giving themselves so pull the plug on the producer, go out and find another producer to play games with while keeping their own profits sky high. I worked for a company, temporarily, who was a victim of this, that's why it was a temporary job, I also know someone who supplied pot grown exotics to a big chain, he went the same way, lost his house the lot.
None of the above relates to Tesco.
Take a look at the quality of veg in supermarkets. Well I'm sure you have otherwise you wouldn't be on this forum, I've seen bags of potatoes sold that I wouldn't use as animal food. dressing and sorting veg is the first thing that suffers because the producer doesn't have the profit margin left to do it, but the retailers profit never suffers. Unfortunately, when a supplier goes to the wall there is always another to replace him, if only they knew what they were getting into.
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treehugger
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PostPosted: Mon Jun 15, 2009 10:17 pm    Post subject: Reply with quote

supermarkets have always been enemy number 1 of the grower,
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