Strong support for beef producers from Treacy
“Producers are not adequately rewarded by the processing industry for producing the type of high quality beef demanded by the EU Market,” said the Minister of State in a press statement last week.
He praised farmers for the very substantial increase in the number of Irish cattle slaughtered under 30 months of age this year.
Export market requirements switched to younger cattle last year due to the BSE scare.
“Clearly, beef producers are responding positively to the signals from the market place,” said Mr Treacy. But he made it clear that the Government is unhappy with the price signals coming back to farmers from processors.
He said the beef task force of some years ago concluded that producers are not adequately rewarded by the processing industry for the high quality beef demanded by the EU market. “There has been little improvement in the situation, since the publication of that report,” said Mr Treacy.
He said the appropriate price differentials for different qualities of cattle was primarily a matter for the industry.
“But the reality is that, if the beef industry wants to move up the value chain and, more importantly, if it wants to increase its presence on the European market, it is in the long-term interests of both beef producers and beef processors, to put in place a price structure, which rewards quality on a consistent sustainable basis,” said Mr Treacy. “Unless producers are rewarded for quality, the beef industry will not have an adequate supply of high quality beef to meet the constant demand.
