Meat industry fury at EC beef cuts

MEAT Industry Ireland (MII), which represents the country’s beef processing and export companies, has condemned a decision by the European Commission to cut beef export refunds by on average 10%.

MII spokesman Cormac Healy said the cuts are equivalent to 9c/kg on the carcass.

Hindquarter beef exports, which account for the majority of Irish exports to non-EU markets, have been particularly hard hit, by a cut of over 16c/kg (12%) in the refund rate.

Coming on top of a 20% reduction in refund levels earlier this year, he said the latest 10% cut completely undermines the competitiveness of Irish beef on international markets such as Russia.

It also seriously compromises the ability of exporters to maintain these important trade channels for Irish beef. Beef export refund levels have now been reduced by over 30c/kg (11p/lb) in the last six months.

With the ending of the Over Thirty Months Scheme (OTMS) scheme in Britain bringing increased volumes of beef onto the market in the course of 2006, it is expected that Ireland will have a higher reliance on exports to non-EU markets.

Mr Healy said that, at the level of export refunds now prevailing, the potential to redirect Irish beef to international markets is seriously compromised.

The EC’s action at the EU Beef Management Committee meeting is totally unjustified, coming as WTO negotiations begin, he said.

Mr Healy said the EC was effectively dismantling the export refund regime before it even got to the negotiating table.