Two-week suspension of farmers' protests
Farmers had conducted round-the-clock protests over the past five weeks after complaining that they were being paid the lowest prices in Europe for their cattle.
But the IMA, representing the factories, claimed the IFA had misled farmers into believing that artificially-high cattle prices could be sustained.
The decision to lift the protests, which have disrupted processing at meat plants, was taken at a meeting in Portlaoise of the IFA national livestock committee and county officers.
IFA president John Dillon said there were strong indications that meat factories had increased cattle prices for certain grades.
Mr Dillon said that the Goodman Group in Cahir was offering 85p/lb for R grade cattle.
He said Teagasc figures confirmed the dire income situation of the drystock sector, where livestock farmers were earning less that 7,000 a year.
IMA chief executive John Smith said the stand-down of factory protests allowed common sense and normal market reality to prevail in the business relationship between farmers and meat factories. Mr Smith said the factory protests had caused severe damage to the industry.
They impeded its ability to service existing customers, restricted forward sales contracts and added to the difficulties in finding new outlets for Irish beef, he said.
"The priority now must be for all parties to work together to repair the damage done."
Mr Smith said cattle prices in Ireland were determined by returns for Irish beef in international markets, where buyers had to be found for more than 90% of all Irish beef.
"Cattle prices are, and can only be, a matter for negotiation between the individual farmer and the factory to which he or she sells cattle," he said.
Mr Smith added that farmers and processors must now work together to produce the type of product that best suits the European consumer in order to maximise returns for Irish beef.
In a response to the IMA last night, the IFA said any suggestion of damage to the industry was unfounded.
Pointing out that the two-week suspension of protests was a goodwill gesture, Mr Dillon warned that any
company trying to force down cattle prices in that time would be challenged.
