Court backs plans for €2.5bn beef industry

A DECISION by the High Court has cleared the way for the possible rationalisation of the country’s €2.5 billion beef processing industry.

Mr Justice Liam McKechnie rejected a challenge by the Competition Authority to an agreement reached between most beef processors represented by the Beef Industry Development Society (BIDS) to rationalise the sector.

In a 103-page judgment, he held that the authority had failed to produce credible evidence to show that the agreement, if implemented, would prevent, restrict and distort competition.

On the basis of the evidence, the judge believed a sufficient level of competition would remain in the industry if the rationalisation plan was implemented.

The Competition Authority said it was studying the ruling. Any decision on an appeal will be taken once analysis of the judgement has been completed.

Meat Industry Ireland (MII), representing the meat factories, said the court ruling was welcome and clearly recognises the openness of the BIDS process and the requirement for a planned approach to addressing the structural problems in the industry.

“Given the delay caused by the court proceedings, MII is anxious to talk with Government and State agencies on how best to progress a development plan for the beef processing sector.”

MII said there remains a need for substantial investment in primary beef processing to ensure the sector operates with the efficiency and competitiveness required to meet the global challenges ahead.

But the IFA president Padraig Walshe said it would resist any attempt to impose a levy on producers to fund the rationalisation programme.