Same price, but farmers ‘paid up to €20% less’

Irish and British beef are retailing at the same price in Tesco UK stores, but meat factories are paying farmers 15% to 20% less for Irish product, ICOS has stated.

The co-op umbrella body yesterday told an Oireachtas committee that the large retailers and Irish-owned meat factories are exercising undue control over the price of beef.

ICOS says it has evidence that no Irish-owned factory in Britain will kill Irish-born cattle, effectively cutting off live trade from Irish marts into Britain.

“We photographed two identical cuts of brisket beef, one labelled Irish and the other British, both prices were the same at £8 [€9.70] per kilo, but the Irish farmer had received between 15% and 20% less per kilo for his beef,” said ICOS national marts chairman, Michael Spellman.

“This equates to almost €200 difference per head. Where did the extra margin go as the UK housewife was not getting any discount for Irish beef over and above British beef?”

The ICOS spokesman also accused the meat factories of having “usurped” the Bord Bia Beef Quality Assurance Scheme by putting in place a range of more onerous preconditions which subvert fair competition.

In terms of barriers to beef exports, ICOS cited the quality bonus which meat processors pay for cattle that fulfil certain “quality” criteria. This bonus payment now stands at 12 cent/kg which represents an average bonus of €40 to €60 per animal.

“In effect this is not a bonus payment but a penalty on all the other animals produced by Irish farmers,” Mr Spellman. He also criticised measures restricting the bonus to cattle residing a minimum of 70 days in their last herd, and having a maximum of four sale movements in their lifetime.

“The meat industry and UK multiples are fully aware that by manipulating the market in the manner described, farmers are not getting a fair and true market value for their stock,” said Mr Spellman.

Cormac Healy, director with Ibec meat factory body Meat Industry Ireland, said Ireland’s processors have delivered €1.25bn extra to farmers in the last five years.

“We are lucky to have the UK market on our doorstep, and 50% of our carcasses are going into that market,” said Mr Healy. “It is the highest priced market in the world, and we are not surprised that the farm organisations are putting such emphasis on that market.

“Producers are working closely with their local factory to produce to the specifications required by the market. Some companies have worked more on the bull beef stage because they have customers on the continent.

“Specifications derive from what the consumer requires. We have spelled out the specs that meet the needs of the vast majority of customers. We are fully focused on development of the beef sector in Ireland with a strong beef processing industry that generates value add and jobs in the Irish economy.

“The mart comments show little understanding of the realities of processing and marketing Irish beef and building a strong and lasting reputation for Ireland as a supplier of quality shelf ready beef to European consumers.”

Fianna Fáil TD Éamon Ó Cuív said the UK price had to be used as the yardstick for Irish beef prices, as it is the nearest and largest market for Irish beef exports.

“Nothing I have heard here answers the question as to why there are more and more barriers facing attempts to get live cattle into the UK,” said Mr Ó Cuív.