New EU-backed law to allow farmers negotiate better prices

New EU-backed legislation is set to be developed to allow producer organisations negotiate better prices on behalf of their members, Agriculture Minister Simon Coveney has told ICMSA members at their AGM in Limerick.

“We want to change the poor relationship that exists between farmers and factories, wherein the bulk of the control rests with the factories,” Mr Coveney said.

“At present, groups like the ICMSA are banned from negotiating price on behalf of their members because it is viewed as anti-competitive to do so.

“We want to set up a legally supported scheme whereby farm groups can negotiate for their members through a professionally run, farmer-owned producer organsation.

"That will allow farmers to plan ahead better than turning up wondering what they will get at the factory gate.”

ICMSA president John Comer and several other members repeated a long-standing call for the reinstatement by the meat factories of a grid to grade the quality of beef from cows being slaughtered.

Mr Comer predicted that the beef sector could be facing into another crisis year in 2016, with prices likely to be driven down by oversupply.

Dairy farmer interest in meat factory prices is also growing, with the size of the national herd rising significantly in the post-quota era.

He noted that 52,000 fewer animals were exported in 2015 versus 2014, while there were 116,000 extra animals born this year.

“2015 has been a better year for beef producers but I have to express my extreme disappointment with the follow-up from the Beef Roundtable,” said Mr Comer.

“The Beef Roundtable set out a number of issues to be progressed and unfortunately while ICMSA was prepared to engage on these matters, specifically, the beef grid review, the other parties refused to engage and reneged on their commitments.”

Mr Coveney said: “I will facilitate any discussion between the different stakeholders if they want to review the grid, but that is a discussion for the factories and farmers.

"I can’t tell the IFA, ICMSA and the meat factories that they must review the beef grid.

“We can chair talks, and suggest an independent chairman, but I can’t force the IFA or Meat Industry Ireland into a room.”