Agri-Food Regulator to get more powers
The Agri-Food Regulator is set to be granted extra powers in 12 months' time, with the aim of strengthening “transparency and fairness” across the agri-food supply chain, according to the government.
Minister for Agriculture Martin Heydon announced the introduction of new regulations yesterday that will ultimately permit the regulator to compel businesses to provide price and market information in certain circumstances.
On this Minister Heydon stated: “Under these regulations, the Regulator will have the capacity to compel price and market information from operators in cases where businesses have not complied with requests for information voluntarily. I am satisfied that these regulations are proportionate and will allow the Regulator to provide insightful analysis into the agri-food sector, while having regard to any potential impact on competitiveness or the distortion of competition.”
The enhanced powers relate specifically to the Regulator’s price and market analysis function, which is entirely separate from its enforcement role in relation to unfair trading practices.
Existing legislation applies across the agri-food supply chain, including supermarkets and large retailers. However, Minister Heydon confirmed that the new regulations will exclude small businesses in recognition of the potential administrative burden such measures can place on smaller enterprises.
For the purposes of these regulations, a small business is defined, in line with EU legislation, as an enterprise that employs fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed €10 million.
Commenting on the scope and proportionality Minister Heydon said: “I am conscious that smaller enterprises can be disproportionately impacted by regulatory or administrative burdens. Having discussed this with relevant parties, I am satisfied that the quality and robustness of the Regulator’s analysis will not be significantly impacted by the exclusion of small businesses.”
To further minimise administrative burden, the regulations provide that the Regulator may not compel data for an individual product from any business more than once in a 12-month period.
The regulations will come into effect on December 31, 2026, allowing sufficient lead-in time for the Agri-Food Regulator to develop the necessary systems, processes and procedures to implement the new powers effectively.
Denis Drennan, President of ICMSA has cautiously welcomed the Government decision and expressed the hope that the proposed changes will "to an extent lift the lid on who is getting what from the final consumer price".
"For too long, mystery has surrounded margins and prices outside the farmgate and the impact of a downturn," he said.
"It is essential that the proposed additional powers for the Regulator delivers improved transparency along the food supply chain and let people see who is getting what. It is quite clear from Teagasc and other analysis that farmers have been working with unsustainable margins for decades, it is there for everyone to see and we need similar clarity along the food supply chain and indeed, such powers should be extended to EU level," said Mr Drennan.