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December 19, 2008

 

Ireland's retailers pressing for tainted pork compensations
 
 

Irish retailers are claiming compensations from meat suppliers in the wake of the dioxin-tainted pork scandal.

 

Irish pork reappeared on supermarket shelves on Thursday (Dec 18) as retailers and producers began to calculate the cost of the week's events, which were thought to amount to EUR1 million (US$1.4 million) per day at the height of the scandal.

 

The retailers would now be examining their contracts to see what they could claim from their immediate supplier, down to a potential claim by the farmer against the feed supplier, said Richard Matthews, head of product liability at Eversheds, an international law firm.

 

Experts warned that suppliers who did not have sufficient insurance cover could face heavy losses. However, the EUR180 million (US$253.2 million) contingency package announced by the Irish government on Thursday (Dec 18) could ease the difficulties.

 

Compensation was expected to be offered to processors who could provide evidence of an adverse impact on their businesses, said a spokesman for the Irish Farmers Association.

 

Even so, legal experts said the compensation was unlikely to cover all losses. Matthews said the package, however, could alleviate some of the more general losses suffered as a result of the dioxin crisis.

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