‘Bonuses paid for beef exports may be a breach of competition rules’
The South of Ireland MEP expects the EU to investigate the practice whereby meat factories pay a 12c/kg quality bonus, or €40 to €60 per animal. He plans to raise the issue with the European Commission next week.
“Last year, Ireland exported over 250,000 tonnes of beef meat to the UK representing almost 70% of their total imports,” said Mr Kelly.
“Irish farmers have to fulfil strict criteria in order to qualify for what meat processors call a quality bonus payment for cattle that fulfil certain ‘quality’ criteria. The practice seems to be totally illogical, and it needs to be investigated to see if it complies with competition laws. The EU is all about freedom to trade and sell services, and that is supposed to apply across the member states.”
Mr Kelly said Ireland is exporting 200,000 tonnes of identical beef meat to other EU states without the restrictive stipulations that have been introduced for exports to the UK “allegedly for quality and welfare reasons”. He made these remarks following a meeting yesterday with beef farmers in Macroom, Co Cork. He has also discussed the matter with Northern MEP Jim Nicholson, and with several farmer representative bodies.
Farmers have also expressed their dismay at seeing the same Irish beef retailing for different prices in outlets in Ireland, the UK and other EU states. The farmers told Mr Kelly they believe the disputed bonus is a tool used by the processors to control the market, and has little to do with any real quality measure.
“We hear a lot of talk about guaranteeing Irish beef from farm to fork,” he said. “If it is guaranteed from farm to fork, what’s the need for all these other impositions? Are all these things just red herrings used to manipulate the market?
“It doesn’t make sense from a consumer point of view. These are very serious issues and raise numerous questions about the transparency and fairness of the internal market for beef farmers.”
Meanwhile, Agriculture Minister Simon Coveney has invited key stakeholders to attend a round table discussion on the beef sector on April 17. The sector has been stuck in a stalemate for the past three months, despite the Ibec group, Meat Industry Ireland, the IFA, and other farmer groups attending talks on meat factory production specs and prices.
Mr Coveney said the beef sector is Ireland’s biggest indigenous industry, involving more than 100,000 farm families, and 8,000 jobs in processing, sales, and marketing, with exports valued of more than €2bn in 2013. Food Harvest 2020 set an initial target of a 20% increase in the value of output for the beef sector. The target for beef exports has already been exceeded.
IFA president Eddie Downey said: “The only way the beef industry can progress is if there is a profit in it for the farmer. Right now, the specs for beef are totally unviable for our grass-based system.
“The minister has to get involved. He cannot ignore his responsibilities any longer. The factories cannot be allowed to introduce changes to the spec without first agreeing those changes with the minister.”
Addressing the Monaghan IFA executive, Ireland East MEP Maireád McGuinness, said it was high time the mistrust between farmers and factories was tackled and she hoped there would be “straight talking” at the stakeholder meeting.
“The consultation must be robust and direct and result in meaningful behavioural change at factory level, to enable farmers to continue to produce cattle. Equally, farmers need to hear and understand what the market is demanding and be assisted to produce to those requirements,” she said.
