Angry Irish farmers drove 300 tractors into the centre of Dublin in protest against falling incomes and claimed both they and consumers were being ripped off by the multiples.
John Dillon, president of the 80,000-strong Irish Farmers' Association, called for an investigation into supermarket profits "at a time when many of our members are struggling to survive". He cited a newspaper survey that showed some chains making profits of over 200% on the price farmers get for lamb.
According to the survey, conducted by the Irish Farmers' Journal, the meat plant pays the farmer 190.72 for a 24kg lamb. After processing, it sells the carcass to the butcher or wholesaler for 193.60, with the fleecy skin fetching an additional 16. The processor also collects a VAT rebate of 4.3% on each carcass.
While the family butcher sells the 24kg lamb to the consumer for a total of 1170.72, the survey found much larger profits are made by the multiples. Tesco, for instance, charges shoppers a total of 1224.60 for the same lamb, with the Superquinn figure even higher, at 1238.40.
For a 2.76kg fillet of lamb, the butcher charges 126.22. But the Tesco and Superquinn prices, according to the survey, are 129.78 and 133.09 respectively, a third of what the farmer gets for the whole animal.
Lamb shanks, loin and gigot chops also yield a considerable profit, with supermarket prices well ahead of those charged by the butcher and far removed from what the farmer has been paid. A spokeswoman for Tesco said the company was not making any comment on the survey or on the prices quoted.
But the protesting farmers were less reticent. One said: "The consumers should be out supporting us. The truth is, we're both being fleeced."
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John Dillon, president of the 80,000-strong Irish Farmers' Association, called for an investigation into supermarket profits "at a time when many of our members are struggling to survive". He cited a newspaper survey that showed some chains making profits of over 200% on the price farmers get for lamb.
According to the survey, conducted by the Irish Farmers' Journal, the meat plant pays the farmer 190.72 for a 24kg lamb. After processing, it sells the carcass to the butcher or wholesaler for 193.60, with the fleecy skin fetching an additional 16. The processor also collects a VAT rebate of 4.3% on each carcass.
While the family butcher sells the 24kg lamb to the consumer for a total of 1170.72, the survey found much larger profits are made by the multiples. Tesco, for instance, charges shoppers a total of 1224.60 for the same lamb, with the Superquinn figure even higher, at 1238.40.
For a 2.76kg fillet of lamb, the butcher charges 126.22. But the Tesco and Superquinn prices, according to the survey, are 129.78 and 133.09 respectively, a third of what the farmer gets for the whole animal.
Lamb shanks, loin and gigot chops also yield a considerable profit, with supermarket prices well ahead of those charged by the butcher and far removed from what the farmer has been paid. A spokeswoman for Tesco said the company was not making any comment on the survey or on the prices quoted.
But the protesting farmers were less reticent. One said: "The consumers should be out supporting us. The truth is, we're both being fleeced."
{{MARKET EDGE }}
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