Farmers demand action by minister over beef prices
The IFA has criticised Agriculture Minister Simon Coveney for failing to challenge the meat factories’ quality payment system and for failing to remove roadblocks impeding live trade to the North. These issues had been raised at the recent beef forum, a platform created by the minister in a bid to address growing farmer unrest with meat processors.
Livestock farmers say beef prices are down 15%- 20%. Steer prices are down 70c/kg, which is equivalent to €280 per head on a 400kg animal. They blame meat factory payment practices for a price cut that could amount to €370m in the annual value of beef output and exports.
IFA president, Eddie Downey, said: “The minister has either taken his eye off the ball or does not understand the severity of the situation. Farmers believe Minister Coveney has been sleepwalking through this beef crisis. They are angry that he seems distracted about his possible future role in Cabinet rather than dealing with issues that are putting their livelihoods under threat.”
The IFA claims the meat factories have “torn up” the quality payment system since last autumn, and are using dual pricing and unfair specifications to undermine prices and market returns.
IFA national livestock chairman, Henry Burns, said: “It’s time Minister Coveney stood up for livestock farmers and restored some confidence back into the sector. Farmers are sick and tired listening to the minister telling everybody how good things are and singing the praises of the processing industry, when beef prices have plummeted and livestock farm incomes are on the floor. Teagasc recently confirmed livestock farm incomes are down 13% to 22% last year, at extremely low levels ranging from €9,469 to €15,595.
“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. Michael Dowling’s report made it clear at the forum that the QPS should operate as originally agreed and it is now up to the minister to ensure this happens.”
The forum was attended by Meat Industry Ireland, the Ibec group representing Irish meat factories, but the IFA says no progress has been made in the dispute.
The group said factories have been returning a strong price to farmers.
The factories argue the international market for beef has been weak this year, noting retailers are not conducting much in the way of promotion activity in beef, and that there is a poor manufacturing beef trade.
MII has also argued Irish factory prices are impacted by the fact Ireland exports 90% of its beef output.
Mr Coveney last night said his department is aware of the problems facing the beef sector. He said the forum was created to address issues raised by the sector.
“There have already been a number of initiatives in the wake of this forum,” he said.
“My department is examining the possibility of legislating for the recognition of producer organisations in the beef sector, and will shortly be launching a consultation with key stakeholder groups in this regard. This initiative could provide a vehicle for collective action by farmers in a way that can give them the advantages of scale and market presence, as well as a useful vehicle for transferring technology and expertise to improve profitability at farm level.
“An additional €500,000 has been allocated by Bord Bia to an intensified marketing campaign for Irish beef in UK and on Continental markets.
“On the question of price transparency, my department has improved its website in order to make price information more user friendly for farmers. This is a key step along the road to developing a Beef Pricewatch app for mobile phones and tablets.”
The bad relations between livestock farmers and factories are also likely to spill over into today’s ‘Beef 2014 — The Business of Cattle’, a day-long seminar being hosted by Teagasc at its Animal & Grassland Research and Innovation Centre, Grange, Co Meath.
Teagasc’s core focus for the outdoor event is to promote optimum practices for successful beef farming in both suckler and calf to beef systems. The event features displays on new technologies; grassland demonstration; animal health; sustainable farm environment; and the production and marketing of quality beef and indoor feeding options.
