Meat factories sharply criticised by IFA over ‘unjustified’ price cuts

MEAT factories were accused by the Irish Farmers Association yesterday of financially crippling winter finishers through unjustified cattle price cuts.

IFA Livestock Committee chairman Michael Doran said the factories were pushing a self-destruct button with their shortsighted price cutting policy.

He said this would drive winter finishers out of business and set the beef sector backwards by years in terms of seasonality.

“It will seriously damage Ireland’s ability to service valuable British and EU retail market outlets on a year round basis,” he said.

Mr Doran said he had spoken to the key factory players this week and told them of the real anger and frustration at farm level with their unjustifiable price cuts, which are inflicting financial wreckage on finishers.

He said the reality is the factories have engineered a pull on prices by backing up cattle numbers even though the kill has not increased and is well down on last year.

Mr Doran said despite the negative move on prices from the factories, the key factors on the beef market were positive.

He said some farmers should consider the option of selling their cattle in the mart where the factories had to pay full value for finished stock.

Mr Doran urged farmers selling cattle to the factories to insist on payment on the day of slaughter.

Payment on the day was essential and is available at most meat plants.

Meat Industry Ireland, which represents the factories, said there are no questions to be answered on the cattle price returned to producers by the Irish beef processing Industry.

Spokesman Cormac Healy said Irish cattle prices increased by 15% last year.

Over the last three years they have increased by over 20% and since 2003 by almost 40%.

“Compare this to any other commodity and the conclusion is that the performance has been exceptional and the industry has delivered on price when market conditions permit,” he said.

Mr Healy said while today’s prices are behind the levels of this time last year, for many valid reasons, they are still considerably ahead of price levels in 2007, 2006 and 2005.