Irish food culture is a game of two halves, where those at the bottom will suffer the most

Irish horses destined for the food chain

As the horsemeat scandal widens to include giant food labels like Nestle and the worlds biggest beef processor JBS, again we see food fraud not happening at farm level but at secondary processing level and the trade of "beef" in a snakes and ladders game encompassing a global set of players.

In short, the DNA tests carried out in Ireland by the FSAI opened a Pandora's Box of food chain nightmares. As the crisis sucks in more countries, it may seem like vindication for the Irish beef sector but is of little value to us consumers, especially those who shop at the lower end of food budgets, relying on processed foods and ready meals as family staples.


What the horsemeat scandal reveals is that Ireland's food culture is a tale of two halves. At one end of the scale, 'Artisan' meats like Aberdeen Angus Rib Eye and wild Irish game star on restaurant menus. Irish food has never been more vogueish. It is gushed over, photographed and blogged about on the 400-plus food blogs dedicated to Irish food alone.

Boning hall at a processor

On the other side of the Irish eating experience are the €1 fast food hamburger. The rashers that are retailing this week at €1 a pack. The Tesco Everyday Value burgers that sold for €1.41 (17 cent for a burger) until the FSAI revealed that at least one of them contained as much as 29pc equine DNA.

As family income crashed in recent years, so did our grocery spend. While foodies shopped at classy delicatessens, award-winning butchers and farm gates, on the poor side of town, consumers flocked to the discounters and got their grocery spend down from €200 a week to €60.

In a depressed marketplace, the Irish supermarkets engaged each other in aggressive price wars. Since 2005, food prices in the UK have increased by as much as 35pc. By comparison, prices in Ireland rose by only 3 to 4pc, despite the fact that prices in the euro area as a whole increased by 15pc. Consumers benefited and we trusted the food chain not to let us down. That trust was not to prove well-founded.

The FSAI's initial DNA tests were conducted on 'value' frozen burgers and supermarkets' own-brand ready meals. Did they know something that we didn't?

What became evident was that the system broke down, not on Irish farms but at the secondary processing phase – where meat is ground for burgers, and mixed with beef trim, fillers and a wide range of ingredients for ready meals.

Silvercrest Foods had a chain of at least three different suppliers involved in providing one single ingredient for the product. Exactly how many suppliers are involved in the production of one burger?

Is the price point simply too low to supply safe food? If not, is somebody creaming off the fat and who exactly are they?

Irish farmers get between 30pc and 40pc of the retail price of primary cuts of meat. They claim that there are three big operators in beef in Ireland – ABP, Kepak and Dawn Meats pay roughly the same prices for cattle despite allegedly being in competition.

Map of Europe's horsemeat trail

In late 2012, just as the price of beef in Ireland was hitting a healthy €4 a kilo, it suddenly tailed off despite low supplies in the UK. This gave a 50 cent per kilo advantage on animals killed there. As our biggest export market is the UK, why were factories here paying around two hundred euro less on finished animals?

The lid needs to be lifted on the precise relationship between beef processors and supermarkets. Ironically, just as the horse-burger story broke, the UK government, on the recommendation of the Competition Commission, appointed their grocery ombudsman to monitor the behaviour of supermarkets.

Agriculture Minister Simon Coveney said this week that similar Irish legislation is expected this term. The same promise was made at an Oireachtas Committee on Agriculture four years ago, where I gave evidence on the need to bring in a body to police the unfair balance of power in the system. It wasn't news then, like it isn't now.

It is worrying that what began with cheap food has made its way up the ladder. Horse DNA was found in burgers made by ABP at Silvercrest/ABP for the Co-Operative supermarket in the UK, known for its attention to provenance. Does risky sourcing become a money-making trick as we move further up the chain?

The majority of Irish consumers are caught at the cheap end of the grocery business. It's urgently clear that consumers need protection in the form of a supermarkets' ombudsman. If this is not the time to introduce one, then when is?

A party about ...lamb prices

I spent last night at a party with neighbours talking about farming, the price of food and how most farmers in my area now had off-farm employment in order to keep going. One neighbour told me how even when he farmed 1000 ewes he couldn't make a living producing lamb. He now works night shifts in a factory to pay the bills, keeping a few sheep but not planning about getting back into farming full time. He laughed as he looked at the drink in his hand "Basically it wouldn't put diesel in the car".

It's the same story on so many farms across the country."So what's your solution?" I asked. He shrugged his shoulders - "no one wants to pay more for food and that's what lies at the bottom of it". He's right, we do want our food cheap and retailers know that; employing hugely competitive strategies to get our business. Competition between them is relentless and they use two for one offers, discounts and sell some goods like milk below cost to get customers in the door.

Milk is a KVI - a retail term which means "known value item". Many shoppers search for bread or milk at the lowest price possible as households use a lot of these foodstuffs. But consumers will also pick up food other than just KVIs in a store, so the retailers sell product at a loss in order to to make profit on other lines. Unfortunately the person at the end of the chain - the farmer, is who suffers. Recently in the UK, huge pressure on the retail price of milk caused farming protests and eventually, agreement on a code of practice between the dairies and the farming unions. Some retailers also agreed to put up the price for milk, a surprising move in a market that is as sharp as Ireland if not more competitive.

Food prices in Ireland actually have varied little in the past five years, and one of the reasons for this is huge competition among retailers for a marketplace that is in recession. Incomes have fallen and so has our food spend. Research shows we look for KVIs, discounts, offers and are shopping around more. The growth of Aldi and Lidl in both Ireland and the UK are testament to our lust for bargains. While retailers say the customer wants cheap food, we also as customers don't want a food chain where the retailer takes huge percentages of the price we pay for an item, while the person who sowed the crop or raised the livestock gets the smallest slice of the pie.

What's interesting about the farming and food policy of the present Government is their sluggishness or lack of courage in implementing a retail code of practice to encourage fairness in the chain. There's been consultation on this done by the previous Government, it was set to continue and promoted as a badly needed policy in the last election campaign but so far there is no movement on it. Yes we want cheap food but a code of practice spreads the price of that food item more evenly to all the people who contribute to it.

Lamb prices are good now but my neighbour is still not tempted to re-enter the full-time farming fray. We also talked about how Harvest 2020's targets for more sheep on Irish farms could knock back prices as higher supply tends to do. There are no easy solutions but what we all agreed was that the massive power the supermarkets wield has been let go unchecked despite promises to engage with the issue. At the end of the night we took our torches, hi viz vests and walked home on country lanes underneath the stars, stopping at another house for a nightcap, which we needed like the proverbial hole in the head. One thing that keeps rural areas strong is people talking to each other, sharing issues and concerns and also laughing - about kids, animals, livestock... or the financially perilous predicament many now find themselves in. It would be great though to see policy addressing the inequality in the Irish food chain..If we're to see a vibrant rural sector and future generations still farming, we have to step up to the plate and engage with the elephant in the room.  

Tesco suspends contract with UK farm after animal cruelty allegations

UK supermarkets including Tesco have just announced that they are suspending pork supplies from a pig farm involved in cruelty allegations. For the second time in recent months, undercover footage has emerged from the lobbying group Animal Equality appearing to show pigs being beaten and inhumanely killed.

Tesco has suspended its contract with the pork supplier saying that they expect "extremely high standards" for animal welfare and are urgently investigating what went wrong at the farm, which was also approved under the RSPCA's "Freedom Food" higher welfare standard. The Co-Operative Group has also asked its own label suppliers not to source from the East Anglian Pig company which is at the centre of the allegations.

For consumers, viewing images like the photos and video which have emerged from the Norfolk farms would put you off your breakfast sausages in a jiffy. I've filmed and interviewed farmers on pig farms in Ireland, and in the supersized version - pig units in Holland. This is the intensive end of the pig farming world - pigs are housed indoors in large numbers and like it or not, it's where most of our rashers, sausages, pork loin etc come from.

In both the UK and Ireland they are regulated under EU food and farming regulations which have codes of practice and welfare conditions to be met in terms of the pigs having space to move, correct ventilation, feed and veterinary care. And at the end of the pigs growing period, they are to be sent to abbatoirs with veterinary inspectors present to be humanely killed for the food chain.

Unfortunately this system does sometimes go wrong.


In England the RSPCA has released a statement saying it has visited the farm and has concerns about the handling of the sows, younger pigs and the way animals seemed to be inhumanely killed. It's the second time in recent months that pig farms, (both in Norfolk) have been found to be breaching guidelines. After the first Norfolk footage emerged, the farmer was found dead three days later. This terrible outcome followed an interview he gave saying he was unbelievably distressed that the animals he farmed were so badly treated by the workers he employed on his farm.

I feel that in Ireland that pig farmers are closer to what is going on on their farms, livestock handlers are more connected to what they are doing, and also to food and animal welfare standards. In Ireland, Bord Bia "Quality Assured" pork means farms have a extra layer of standards above the EU regulations for regular pig farms. They are inspected, audited continously and there is a high degree of traceability in the chain. In terms of pork you buy in the supermarket, "Quality Assured" label on packaging as it means the pig meat was farmed in Ireland under a highly regulated system. 

What happened in the UK should not be happening on pig farms anywhere in Europe, including Ireland. I read a lot about food and farming systems in the United States and one thing we have in bucketloads in this part of the world is regulation on how our food is produced, including the welfare of the livestock we eat. The good aspect of this story is that the supermarkets were very quick to react to consumer fears, and the off-putting idea that animals are suffering for your plate.

If you want to pay extra for animal welfare to the extent that it influences your shopping you can always buy free range pork from the many Irish farms now selling it. Pigs on these farms roam in the open and have a more natural "herd" structure. If you can't make that price point  - free range is going to be more expensive, look for Irish pig meat, Bord Bia approved or from small producer groups like Trully Irish.

Hey ho, the supermarkets are at it again

Last week we heard how Ireland has the second highest food and drink prices in the EU. This week it's becoming clearer why. If farmers are barely scraping a living and we're paying way over the odds for our groceries, who exactly is getting the fat in the middle? Eurostat's figures showed that what we pay for food is 29% higher than the EU average. Ireland recorded the highest prices in Europe for dairy produce such as milk and cheese, and despite being the biggest meat exporter in the northern hemisphere - we are still paying the fifth highest meat prices of the 27 countries surveyed.

In an investigation just published, it turns out that the high prices we are paying are the result of multi-national chains abusing their dominant position, poor information on special offers beyond local markets in the EU and the slow growth of e-commerce. The EU commissioner Michel Barnier has just revealed the results of a new study along with the promise to introduce new rules on food retailing in the autumn. Half of all retail in Europe is grocery and is dominated by the big multi-nationals such as Tesco and Carrefour. The report found that prices can vary hugely for products, even for the same product in different outlets that belong to the same supermarket. Barnier's report also found that Ireland is still wrapping its food in huge amounts of expensive packaging, up to six times as much as the lowest member state.

It's always been the case that there has been a disconnect between what food is worth to food producers and what we consumers pay for it. In some cases the contrast is actually offensive to farmers; rendering a unit of production (a beef heifer etc) just not worth rearing by the time you've paid your costs. Many farmers can barely break even, such is the power of the mulitples. Time and time again during the writing of our book and continually still, I am being contacted by farmers who are having terrible treatment at the hands of the multiples, few will give their names as they are terrified of being blacklisted. Especially as summer time is fruit season, it unfortunately coincides with many sad tales from fruit growers. One farmer told me last week how a retailer refused his strawberries even though he had matched the price of their imported product from Chile. Then the supermarket insisted that the farmer collects any unsold product and waste and pays for its disposal. They refused to sell it at a discounted rate, he said they simply couldn't be bothered.

Roll on some proper supermarket ombudsman legislation, transparency of their profit margins, and codes of practise which must insist on fair treatment of producers. I spoke to an Oireactas Committee about this last May, the legislation is in consultation phase, I just hope they get it out into the marketplace to protect both farmers and consumers as quickly as possible.

More at -

The Examiner
http://irishexaminer.ie/ireland/politics/goods-wrapped-in-up-to-six-times-more-packaging-124307.html

Patience Wheatcroft in the Wall Street Journal http://online.wsj.com/article/SB10001424052748704535004575348944028858252.html