Meat factories warned not to complicate quality payment grid

MEAT factories have been warned that any efforts to further complicate the new quality payment grid will not be tolerated.

Irish Cattle and Sheep Farmers Association beef committee chairman Peter Fox said factories have to cop on to the need to rectify existing problems with the grid.

“We would be very concerned if there was further price differentiation between fat scores given that there is already widespread confusion among farmers who are annoyed at the difficulties in predicting the value of their stock,” he said.

Mr Fox said many farmers have taken a jaundiced view of the grid because factories have deliberately chosen to pay unsustainable low prices for cattle this spring.

“The QPS grid is in place now for over three months and its purpose is to reward producers and finishers of better beef cattle,” he said.

Mr Fox said this has not happened for two reasons. One is that the base price has remained too low and is crippling finishers, especially winter finishers.

The other reason is that the large numbers of cattle grading O or lower have been discounted. Yet, the small numbers of cattle grading U are getting a price that comes nowhere near what is required.

All of this has resulted in the grid becoming a purchasing tool for the factories. The factories have left out young bulls because they are not willing to put in place a realistic incentive for these.

Mr Fox called for an outside body, independent of all farm organisations, farm bodies and Meat Industry Ireland, to examine the whole pricing structure for the way that beef is bought.

“The power of the retail sector also needs to be examined,” he said.