Factory demo called off

Marts: The protest at the Kepak factory at Athleague was called off yesterday after agents for the factory reinstated quoted prices for cattle at 263-252 cent/kg (94p-90p/lb) for R/O grades, which had been demanded by the livestock farmers.

The protest rally planned for Athleague tomorrow afternoon has been cancelled, but the level of anger shown by the farmers has sent a very clear warning signal to the processors against reducing prices for O grade cattle below 90p/lb.

IFA deputy leader Ruaidhrí Deasy issued a reminder to the beef processors that farmers must have a viable price for their cattle.

Cormac Healy of Meat Industry Ireland pointed out that the commercial realities underlying the weakening in returns from the marketplace in recent weeks remained unchanged. These issues cannot be ignored. He called on all stakeholders in the beef sector (farmers, processors, Bord Bia and the Government) to concentrate efforts on addressing these issues for the future.

Mr Deasy said: “our main export market in the UK remains very strong,” but the cattle suppliers have challenged that the difference of up to 16p/lb, amount to €150/head in return to producers is not acceptable and Irish meat processors should maintain current prices for cattle.

Mr Deasy emphasised the critical importance of price stability for the trade over the autumn disposal period, essential for farmer confidence in the run-up to the new decoupling policy from January 2005.

The breaching of the 90p/lb benchmark price for O grade cattle at Athleague has increased tension between farmers and processors, neither of whom welcome any disruption to the steady flow of cattle to the factories and will make it more difficult for any factory to pull prices over the coming weeks.