Beef farmers and meat factories to work closely on price following talks
Agriculture Minister Simon Coveney said yesterday’s talks in Dublin Castle were constructive, and would lead to closer future industry discussions on supply, demand, prices, product specifications, and retail changes. He hosted the talks following months of unrest in the beef sector.
“I believe that this was a very worthwhile exercise and the serious engagement by the stakeholders present reflected the importance of this vital sector to the Irish economy,” said Mr Coveney. “One of my priorities since taking office has been the continued development of the beef sector and I am personally committed to its development as is the Government.
“This is reflected in the €40m investment package in this year’s budget. One of my primary objectives throughout the CAP reform negotiations was to ensure the sector was supported at farm level.”
He has asked Beef Activation Group chairman Michael Dowling to review implementation of the its report and to engage with all stakeholders and consider any additional actions, including the possible role of long-term contracts, and to report by the end of May.
IBEC’s meat factory group, Meat Industry Ireland, welcomed the industry’s new formal communication platform.
MII director Cormac Healy said: “Better communication will include improved market signalling and communications around market requirements and specifications. In relation to cattle price comparisons with the UK, the industry highlighted that a more realistic barometer for Irish cattle price is a proper comparison with a grouping of the main beef producing member states in the EU. It was noted that, in terms of retail beef sales in the UK, only 1kg in five is Irish.”
MII said its goal remains to ensure delivering the best returns from the marketplace, but added that this will require following guidelines and specifications on what the market requires.
IFA president Eddie Downey said profit at farm level has to be at the core of the new negotiation process, adding that the minister’s commitment to stay with the process was important.
He said the extra Bord Bia resources to be directed at marketing beef in our main markets is timely, and wel-comed greater resources to be targeted at beef farmers for farmyard facilities.
“Farmers will judge this process on the basis of their concerns being fully addressed,” said Mr Downey. “The prices they secure from the market must fully reflect the work and investment involved in producing quality beef.”
ICMSA president John Comer welcomed the moves towards some degree of supervision of the pricing and margin structure. However, he said the most obvious solution would have been the setting up of a beef market monitoring agency of a type similar to that announced by the EU last year for dairy markets.
ICSA president Patrick Kent repeated his call for a beef regulator, but added that the ICSA would seek to use the new permanent negotiating process to deal with the issues in the sector.
“These issues include sudden changes in price and spec, anti-competitive practices designed to manipulate price, difficulties in exporting live stores to Northern Ireland and Britain, savage cuts on animals that don’t meet quality assurance criteria and the overall concern about the suckler herd,” said Mr Kent.
