Cattle farmers ‘confused’ over charges at beef plants

FARMERS are confused and cynical over the charges and deductions that are applied to the prices they are paid from the sale of their cattle at beef processing plants, according to the findings of a survey published today.

Only 14% of farmers knew that the flat rate VAT refund was 5.2%, while 79% felt that the system was of greater benefit to the processor than the producer.

Meanwhile, only 20% of farmers knew how much they were being charged for BSE testing, although many expressed anger at the charges, considering them to be the worst type of rip-off.

Only 7% of those surveyed by the Irish Cattle and Sheep Farmers Association knew how much the Department of Agriculture and Food levy was and fewer again (5%) knew what the bovine disease eradication cost.

Only 36% realised that this levy, too, was payable to the department while a mere 9% of the farmers surveyed knew the amount of the Bord Bia levy.

Some 38% of farmers were aware of the amount of the European Involvement Fund levy, while 51% did not know to whom it was payable, with many thinking it was going to the EU, as opposed to some farm organisations.

Only 56% of those surveyed realised this levy was voluntary.

Insurance was also a confusing issue, with 27% of farmers unsure of exactly what the charges were, and only 34% realising it was voluntary.

Overall, of the 128 farmers surveyed in locations around the country, most were at best unclear as regards the levels of deductions, while many had little or no information at all.

Eddie Punch, general secretary of the Irish Cattle and Sheep Farmers Association, said the findings highlighted the need for more awareness among farmers as to what they were being charged.

“The association is looking for a review of all deductions and believes that there needs to be greater transparency regarding money taken off farmers,” he said.

Martin Coughlan, national executive member of the association, who co-ordinated the survey, said there was far too much money being taken off farmers.

“It is questionable what value farmers are getting for these deductions. In particular, the BSE levy is scandalous and we need a change in this immediately. There is no need to be testing perfectly healthy cattle of 34 months of age,” he said.