Meat factory owners and producers fail to make breakthrough on prices

Roundtable talks between livestock farmers and meat factories have failed to resolve long-running disputes over factory beef prices and meat specifications.

IFA president Eddie Downey said livestock farmers were extremely disappointed and frustrated with the failure of Agriculture Minister Simon Coveney’s new beef forum to deliver any change in the sector.

The IFA leader said the forum had failed to resolve the issues with factories surrounding the proper application of the quality payment system and specifications, and had also failed to remove roadblocks preventing the live trade to Northern Ireland.

“Minister Coveney must deal with this fundamental issue and have it corrected without any further delay, if his beef forum initiative is to have any credibility with farmers,” said Mr Downey. Beef Activation Group chairman, Michael Dowling, made it clear at the beef forum that the quality payment system should operate as originally agreed and that it was now up to the minister to ensure that this happened.

“The way the factories have torn up the quality payment system since last autumn using dual pricing and unfair specifications to undermine prices and market returns is totally unacceptable,” he said.

The IFA president also said the lack of urgency and progress on removing the roadblocks preventing the beef sector’s live trade to Northern Ireland was totally unacceptable. He said: “Michael Dowling has made it clear this is a political issue; Minister Coveney must be much more proactive and focused in resolving this issue.”

Meanwhile, Irish Cattle and Sheep Farmers’ Association president Patrick Kent said that contracts for beef finishers were not the solution to the beef crisis.

He said that contracts that lock farmers into unviable systems of production were a means to guaranteeing supply when cattle get scarce, while ensuring beef farming continued to be one of the lowest-paid occupations.

“The key is a sustainable share of the retail price and transparency about who gets what.

“Experience suggests the only way a farmer gets a good deal is when cattle are scarce. Contracts for the average farmer will be unviable when cattle are plentiful and not necessary when they are scarce.

“The reality is that the retail trade want to squeeze every last drop out of producers. This is evident not only with the beef trade here but with price cuts for British farmers as well.”

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