Tesco seeks compensation for Irish pork
Tesco has infuriated the Irish pig industry by demanding that its suppliers pay compensation for profits lost during the dioxin recall.
An estimated £100m worth of Irish pork products had to be removed from supermarket shelves during the recall last December. In a bid to recoup some of its losses, Tesco has written to its suppliers demanding compensation payment within 30 days.
The letter has sparked outrage amongst Irish processors, who say that the circumstances make it unfair for the supermarket to seek compensation for missed orders. So far, none have cooperated with Tesco's demands.
Tesco has defended the move, insisting that it is "normal industry practice" to seek compensation from suppliers on product recalls.
The supermarket denies claims that it was trying to cash in on government compensation paid to processors after the dioxin incident, insisting that the letters were sent out before any details regarding government compensation were finalised.
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