Kelly seeks beef market probe over possible breach of competition rules
The Ireland South MEP told authorities in Strasbourg that Irish farmers are being discriminated against.
He said meat factories are manipulating the market by insisting Irish farmers fulfil strict criteria in order to qualify for what meat processors call a quality bonus payment of 12 cents per kg or an average bonus of €40 to €60 per animal for cattle that fulfil certain “quality” criteria.
Mr Kelly said many farmers see this bonus as a penalty on all the other animals produced by Irish farmers.
“Irish farmers are, in effect, getting €200 or €300 less per animal compared to the English farmer for beef being sold in the UK. However, the UK consumer is still paying the same price for the product in supermarkets,” Mr Kelly told fellow MEPs.
He also challenged a factory criteria insisting an animal should have only four movements or less in its lifetime, and a 30-day restriction on movement. Again, he said these criteria amounted a market and price control device rather than a measure to govern quality.
“Of course we know that smaller farms in Ireland often require several movements of animals on various farms before these cattle are finally finished on the last farm before slaughter,” he said.
Mr Kelly welcomed the round table beef sector talks due to be hosted in Dublin today by Agriculture Minister Simon Coveney, but said that the cross-border nature of the fair competition issue merits and investigation from the European Commission’s powerful Competition Directorate.
Meanwhile, IFA president Eddie Downey has met with Northern Ireland Minister for Agriculture Michelle O’Neill on specification and labelling issues that are restricting the live export trade between here and the North, and damaging beef prices.
Mr Downey said: “Minister O’Neill committed to getting involved in trying to resolve the issue at processor and retailer level. The minister has also agreed to raise the matter with the Agriculture Minister Simon Coveney and to work jointly to resolve these problems.”
Minister O’Neill agreed with the IFA delegation that more needs to be done politically to progress the trade opportunities between here and the North, and to maximise the potential of agri exports from the island of Ireland.
Mr Downey said that today’s round table beef talks need to deliver an outcome ensuring the sector does not face the same issues in future years.
“Now that Minister Coveney has brought everybody together in a forum IFA has looked for since last February, the following has to be on the agenda: workable specifications, labelling and trade barriers, competition through live exports, restrictions on movements, contracts for winter finishing and better transparency and communications from processors and retailers,” said Mr Downey.
Also speaking before today’s talks, ICSA president Patrick Kent described the current beef market as a wild west where farmers are at the mercy of all sorts of unscrupulous practices. He said today’s talks must help restore order and confidence in the sector.
“This is a scenario where the sheriff has been out of town for too long and the lack of regulation is encouraging more and more gouging of farmers by the powerful elite who control processing and retailing,” said Mr Kent.
“We have had numerous calls from farmers who have been paid as little as €3/kg for prime beef which did not qualify for the quality assurance.
“In cases, it was due to animals being a few days short of the residency requirement. This has nothing to do with consumer demands and everything to do with ripping off farmers and reducing the overall price paid for beef,” he said.
