Irish beef price cut hits British farmers

BRITISH farmers have joined their Irish counterparts in an attack on low Irish beef prices.

The National Beef Association (NBA) said the price their members can achieve for cattle is being dragged down by slaughter cattle £70-£80 (€75-€85) a head cheaper coming from the Republic of Ireland.

The NBA claimed British supermarket chains are mixing large volumes of cheap beef from Ireland with more expensive beef produced within Britian.

It said Tesco sold 98% British beef in 2007 but now offers only about 90%, Sainsbury’s had only 82% British beef, and Asda had about 40% imported beef, and Netto sold only imported beef.

Lidl sells around 96% British beef, Somerfield 71%, and Aldi about 61%, according to NBA director Kim Haywood. But Morrisons, Waitrose, Marks & Spencer, the Co-op and Budgens (owned by Irish-owned Musgrave) sell 100% British beef.

Meanwhile, IFA president Padraig Walshe said there was deep anger among beef producers at the way Irish processors had cut prices and used negative propaganda to destroy confidence among winter cattle finishers.

He led protests at AIBP and Dawn Meats factories — suppliers to Asda and Sainsbury, according to the NBA.

In a strong response to the IFA action, Meat Industry Ireland director Cormac Healy, representing processors, said Irish beef will not attract the same price as home-grown English beef.

However, Ms Haywood said: “The current situation, in which a processor-led attack on Irish cattle values is also being used as a lever to reduce the price of British stock, is not just counter-productive, it is destructive.”

She said it explained why cattle prices across Britain and Northern Ireland have begun to slip steadily.

According to Mr Healy, “Livestock prices are a reflection of an EU beef market facing tough challenges presented by the fallout from the international credit crisis in the form of weaker consumer spending on beef generally, especially on higher value cuts; weaker currency exchange rates, most notably sterling, and the reduced values of hides and offal.”

He called for the Beef Forum, chaired by the Department of Agriculture, to be immediately reconvened to discuss how to help beef finishers and beef processors. He said beef processing is under extreme pressure, as evidenced by recent job losses.

nThe Dunbia meat processing firm has said 80 of its Co Westmeath workforce will lose their jobs. The company, which employs 2,000 in Carlow, Meath, Tyrone, Westmeath and Antrim, said the redundancies at Kilbeggan are part of measures to reduce operating costs.