Knackeries using rule changes to increase disposal charges
The IFA believes it is anti-competitive to impose a 125km collection limit on farmers seeking to qualify for subsidies for the rendering of fallen animals.
A survey of IFA members has revealed marked increases in particular for farmers in the northern counties. The 125km collection limit has reduced farmers’ options when it comes to choosing a renderer, notably excluding the cross-border option.
IFA animal health chairman Bert Stewart said the impact of the Department of Agriculture rule changes is that reduced competition has led to a surge in rendering fees.
Mr Stewart said: “Farmers in the northern half of the country are experiencing increases of up to €60 per animal in some cases, while farmers in the south of the country where knackeries were not availing of rendering in Northern Ireland to the same extent, have not experienced any cost increases.”
Mr Stewart said IFA have highlighted this concern to Agriculture Minister Simon. These survey results prove the application of the anti-competitive 125km maximum distance by the department, in order to be eligible for the TSE collection and disposal subsidy for over 48-month old animals, has imposed an unacceptable cost burden on farmers.
When the issue was raised in recent Dáil debates, Minister Coveney said the new 125km was introduced on a “best practice” basis, while also allowing for a degree of choice for farmers.
“Each animal collector will be able to choose to use at least two rendering companies,” said Mr Coveney. “These revised terms only apply to the TSE subsidy scheme that my department operates to facilitate the TSE testing of over 48-month bovines as required by EU legislation.
“Any animal collector who wishes to opt out of this scheme will, subject to compliance with animal by-product regulatory requirements not be bound by the revised scheme rules.
The new arrangements will be subject to a six-month review.
Bert Stewart has called upon the minister to remove the new TSE measure.
The IFA says its survey shows that in areas where competition exists between knackeries farmers pay lesser collection rates.
The IFA survey cites collection rates ranges from €10 to €40 /head for calves; €40 to €95 /head for animals aged 6 to 12 months; €40 to €120/head for one- to two-year-old animals; and €45 to €150 for two- to four-year-old animals.
For over 48-month old animals, which are subsidised by the Department of Agriculture, collection charges range from €40 to €55/head. In areas where farmers can avail of direct delivery, some knackeries offer reductions from the collected rate.
