Processors scupper our image
Never a business to waste one of its scandals, beef processors are telling some farmers this week they have to pay less for their cattle, because of the market impact of horse meat found in their beef burgers.
That’s bad news for cattle farmers, who are normally paid just enough by processors to keep their heads above water.
The cattle farmers’ wages don’t come from the beef processor; they come from the EU taxpayer, and processors know that, and take full advantage of it.
They know it’s cattle farmers who get most of the annual €1.2bn single farm payment from the EU, and carefully peg their cattle prices at just the right level, so that loss-making cattle farmers don’t have to eat too much into their income subsidy cheque from the EU.
There seems to be little competition between the 25 processors across the country for farmers to take advantage of. Typically, farmers can do no better than 1.4% over the average price paid.
Nearly all our beef is exported, half to the UK and half to the EU mainland.
But farmers here get about €300 per head less for their cattle than their UK neighbours, and were recently paid 5-10% less than continental counterparts.
Teagasc recently calculated that cattle prices here would need to increase 12-18% to leave a profit for winter finishers. Instead, processors keep prices low — which drags down prices in Northern Ireland also, which have been running at about £150 per head behind the UK mainland.
It’s no wonder farmers here and Agriculture Minister Simon Coveney welcomed the recent confirmation that the live export trade has re-opened, and the first shipment is likely to take place in the middle of this month, to Libya.
Mr Coveney noted that the live export trade provides alternative market outlets for certain categories of livestock, thereby serving a market demand and providing increased competition in the market place for cattle.
It sums up the Irish cattle business, when a new trade that takes jobs out of beef factories here is welcomed not only by farmers but by the minister — because it seems to be the only way of achieving competition in the cattle trade.
At least, the Libyans can be sure they won’t get any horse meat — and they are getting some of the best beef in the world, quality assured because it is on the hoof, straight from our farms, with our processing industry unable to tamper with it.
‘Best beef in the world’ is not an idle boast. Irish beef was the key meat ingredient for last week’s Bocuse d’Or, the international competition widely regarded as the Olympics of the culinary world, which attracted over 170,000 food buyers and over 5,000 international chefs.
Following a rigorous and lengthy selection process, Irish beef was selected for its grass-fed nature, sustainable farming methods, world class quality, taste and tenderness. Each of the 24 national teams of chefs from across Europe, Asia and America was supplied with fillet of Bord Bia quality assured, grass-fed steer beef.
Mr Coveney was able to tell the food buyers and chefs at Bocuse in Lyon, France, last week that Irish beef producers are committed to bringing beef of exceptional quality and taste to premium markets.
But his plan to differentiate and position Irish beef by presenting a premium image was being sabotaged at home by our processors.
Although they have access to some of the best beef in the world from Irish farms, and Ireland is the leading exporter of beef in the northern hemisphere and the fourth biggest beef exporter in the world, they have been importing huge tonnages of cheaper meat for inclusion in their beef burgers.
The imported meat is passed off as beef, but contains a large proportion of horse meat. As a result, Irish beef is now probably as well known for being mixed with horse meat in burgers as for being up there with the best in the world.
Processors are keeping down our cattle farmers, and ruining the reputation of our beef industry.
The Garda Fraud Squad has had to step in.
After their investigations are finished, every shipment of imported cheap meat will have to be checked by civil servants, to keep the industry clean.
While the Government is at it, why not install personnel also from the Competition Authority?
