Meat industry faces further costs

Meat processors warned yesterday that a Government decision to withdraw subsidies from the rendering industry from March 1 will cause major problems for the livestock sector.

Meat industry faces further costs

Irish Meat Association chief executive John Smith said farmers selling livestock from next week onwards will bear the brunt of the elimination of the rendering subsidies.

The meat industry is not in a position to absorb these extra costs and it will not be possible to recoup them from the final consumer of the meat.

He said the Government subsidy for the rendering and subsequent disposal of bones and soft offal is equivalent to €13/head on cattle and €2/head on sheep.

A separate Government subsidy for the rendering and destruction of blood corresponds to over €4/animal in the case of cattle and around €0.25/animal in the case of sheep.

Mr Smith said the meat industry is conscious of the difficulties facing livestock farmers and will be seeking to minimise the costs involved.

But meat companies are unable to absorb these additional costs and ultimately the burden will be borne by the animal.

Mr Smith urged the Government to rethink its position on this matter and avoid further undermining the competitiveness of the livestock sector.

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