Meat processors issue costs warning
The country's meat processors have warned tough challenges are ahead over increasing costs.
Irish Meat Association chief executive John Smith told the Macra na Feirme's conference in Kilkenny that the Government and EU were pulling back in terms of costs subsidisation.
During a head-to-head debate with the IFA on cattle prices, he said increased costs must be the first issue faced in the new year.
This followed the Government decision to withdraw subsidies on BSE testing of steers and heifers of over 30 months, the dilution of its contribution towards waste disposal costs and the doubling of the disease eradication levies from the beginning of January.
These will add major costs in the post-Christmas period, warned Mr Smith.
He said any dilution of Government subvention and any increase in charges will hit farmer returns. He said the returns from the international marketplace, where 90% of Irish beef is sold, determines what meat factories here can pay for cattle. He also confirmed rationalisation of the meat processing industry is being actively discussed.
IFA National Livestock Committee chairman Derek Deane said a beef summit meeting called by Agriculture Minister Joe Walsh for early next month must address the critical issue of viable cattle prices.
He said Mr Walsh and the beef processing sector must realise Irish livestock farmers cannot survive financially with cattle prices at the bottom of the EU price league.
Mr Deane said the IFA had tackled the meat factories directly on the cattle price issue this autumn and successfully prevented a total price collapse.
He said Mr Walsh must also address the problems of market access and competitiveness, in terms of efficiency, and of costs, which were way too high, particularly in the area of veterinary and meat inspection.
Mr Walsh told the conference he had called a meeting of the main players in the beef industry to seek some way of avoiding the difficulties between processors and their suppliers.
Without trust there was no possibility of the industry developing, he said
