Beef and grain industries invited to decoupling talks
The Association’s President, John Dillon, said farmers can now decide when to sell cattle, without retention periods or census dates. “We must use this new freedom to maximise cattle prices from the factories,” he said.
He said farmers need price increases to 3/kg (107p/lb) for winter beef and 2.66/kg (95p/lb) for beef off grass.
He proposed a “partnership of equals” between beef factories and farmers. “Put the past behind us. Short-term advantage for factory or farmer is a road to nowhere.”
“Both sides have a huge investment in the beef industry. We are both up against strong international competition.”
“Today I am offering the beef trade to take the first step towards building a viable and sustainable industry for farmers and processors.”
He said 2005 will be a defining year for the future tonnage of grain produced in Ireland. “New structures and relationships will have to be put in place to maintain current levels of output and secure the viability of the native industry. The IFA Grain Committee will be approaching the industry immediately to commence this process.”
Mr Dillon said modulation funds must be targeted to improve cattle, grain and sheep farming, and a resolution must be found to potato growers’ difficulties in stacking their Single Farm Payment entitlements.
He accused dairies of being hell bent on damaging the liquid milk market, after Kerry’s price cuts of 12c/gallon, l Connacht Gold cutting prices, and Glanbia, the biggest player, trying to cut 10c/gal. “To be blunt, these demands are coming from a very inefficient sector. There are 24 bottling plants in the country doing what three or four could do, at a much lower cost, without losing valuable brands,” said Mr Dillon.
“There is 11m of farmers’ income at stake here. And where would the money go, if the dairies got their way? It would be given away to the supermarkets and used to shore up the profits of inefficient dairies. In 12 months, they would be back for more. I am telling the dairies today, as long as they have no strategy to get efficient and deal with cheap imports, IFA will fiercely resist any price cuts.”
