26-05-2025
Senator claims suppliers in Co. Cavan will have to ‘slash' prices for new Tesco store
A senator has told the Seanad that suppliers based in Co. Cavan will have to 'slash their prices' if they want to provide produce to the supermarket group Tesco, which is taking over the lease of a former SuperValu store in Virginia.
Sinn Féin Senator Pauline Tully detailed in the Seanad that she been 'informed that all local suppliers have been told they must be prepared to give a 40% margin immediately on their goods' if they want to supply the new Tesco store.
Senator Tully said: 'This is just going to hammer local suppliers.
'They were supplying SuperValu and, if they want to continue to supply Tesco, they have to slash their prices. They cannot afford to do that.
'They are already barely keeping their head above water. They have families to support, transport costs, production costs and so on. They are providing fresh meat, some of which is organically produced, and fresh fruit and vegetables'.
Senator Tully told Agriland that some Co. Cavan suppliers have contacted her and are 'very angry' that this is the approach that Tesco has taken, The senator said she is also concerned about the impact this could have on local farmers and businesses.
According to Senator Tully it is vitally important to protect the people that 'grow produce' and who work on and invest in the land and she wants to ensure that farm families and producers who are supplying to supermarket groups such as Tesco are protected.
'What we are seeing is a decline in the number of people who are providing that sort of food in this country because of this practice.
'It is time the government introduced a ban on below cost-selling.
'What is happening is devaluing the goods farmers work so hard to produce,' the senator added.
She has called on the Seanad to raise the issue with the Minister for Agriculture, Food and the Marine, Martin Heydon.
Tesco
A spokesperson for Tesco confirmed to Agriland that it had 'recently acquired a long-established store in Virginia, County Cavan which will soon re-launch as our third Tesco store in the county'.
The spokesperson added: 'We are currently in the process of refreshing and refitting the store under the Tesco brand.
'As the world's biggest retail buyer of Irish food and drink, we are proud to partner with over 500 local Irish suppliers nationwide who provide the best quality products for our customers.
'We have already initiated conversations with a range of existing local Cavan suppliers to explore new opportunities for them with Tesco, both in the Virginia store and more broadly across all our stores'.
The spokesperson also stated that 'contracts and supply agreements are negotiated in a fair and transparent way'.
They added: 'We are proud to have been named the retailer of choice for nine years running by the Irish supply base in the Advantage Survey, which is testament to the strong relationships we build with our supplier partners'.
