ICMSA president John Comer
ICMSA president John Comer has drawn attention to the announcement by the Nestle corporation that it intends working to a profit margin of 17.5 to 18.5 per cent by 2020.
Mr Comer said that it could not be more clear as to who will be expected to “cough up” to enable Nestle, who he described as the epitome of a multi-national corporation, meet this very significant profit margin.
He said reports that Nestle had decided to set a margin under pressure from investment fund shareholders while at the same time giving no indication of hiking retail prices meant that there was only one option for them and that was a relentless attack on the margins of those supplying raw ingredients.
“Nestle is telling anyone who’s interested that it’s going to jack-up its profit margins at the expense of those producing the milk, the grains and all the other raw materials provided by family farms,” said Mr Comer.
If the EU Commission still had any doubts about the need for action on regulation of margins in the supply-chain, then this announcement must act as yet another wake-up cal, said Mr Comer.
The ICMSA president said it was not acceptable to see massive corporations and investment funds announcing in this casual way that they were going to grab the margin of the farmers producing the food without a single voice being raised at EU level to object.
The Commission’s consultation process ends on November 17 and ICMSA is urging everyone with any sense of fairness to lodge their arguments online and signal to all the parties involved that this kind of corporate power was to be rejected.
He called on Nestle to spell out how it intended to achieve these margins and who will pay the cost.