Farm organisations critical of government response to beef crisis

Farmers are dismayed by the Government’s low level response to the falling beef prices and the ongoing dispute between farmers and meat factories, said ICSA president Patrick Kent.
Farm organisations critical of government response to beef crisis

Mr Kent criticised responses to Dáil questions by Communications Minster Pat Rabbitte, who said the past few years have been an “especially good time for farming, generally”.

Mr Kent said the response “clearly illustrates that the Government is completely out of touch with the situation facing beef and suckler farmers. The Teagasc National Farm Survey estimates for 2013 show a catastrophic collapse of 22% in suckler incomes and 39% in sheep incomes. On average, these farmers are earning less than they would on the dole.”

He added that Teagasc’s Beef 2014 forum earlier this week showed that even the most efficient high performance suckler farms are only making €4,000 per annum out of 70 cows in a 100-acre unit.

“In the light of these figures, and the fact that direct supports to farmers are declining on an ongoing basis, it is quite baffling that the minister could imply that this is a good time for farming,” said Mr Kent.

Fianna Fáil spokesperson on agriculture, Éamon Ó Cuív, told his Dáil colleagues that beef prices are down 20% this year, with farmers now receiving €200 to €300 less per head on average. He said one of the main issues affecting the price of bull beef is the labelling problem.

“Cattle that were reared in Ireland and finished in the North are no longer considered from the North for labelling purposes. This has come to the fore recently and cattle are neither Irish nor British in terms of labels, it is preventing Irish cattle from being sold in the UK as supermarkets only want beef reared and finished in the one country.

“It is extremely frustrating that Minister Coveney has not convened a meeting with his Northern Irish and British counterparts to find a solution to this problem. There is effectively a trade barrier in place for Irish beef and the minister must take action on this now.”

Criticisms of the Government’s response to the beef crisis were also voiced by the IFA, which led two protests this week.

IFA national livestock chairman, Henry Burns, said: “Farmers are sick and tired listening to the minister saying 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.”

Minister Coveney said that he is “acutely aware of the importance of the beef sector and sensitive to the concerns of farmers”. He said the downward pressure on Irish beef prices is of course replicated in the UK, which is our main export market and in other key EU markets.

“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,” said Mr Coveney. “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.”

Meanwhile, Mr Coveney is embarking on a trade and investment mission to the US tomorrow which industry sources suggest could lead to the re-opening of the US market to Irish beef imports.

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