Price differences fuel distrust between farmers, processors

The apparent difference in price between the UK, particularly Britain, and Ireland is one of the greatest causes of distrust between farmers and processors, the Beef Activation Group chairman Michael Dowling has said in his report to the recent second beef roundtable.

“That there is a difference is not in dispute, and that some difference should exist is not generally denied, given that one is a large deficit market, and the other is a large surplus producing area, and that there are transport and other costs to be taken into account.

“But the size of the difference as measured in terms of R3 carcases is generally seen as excessive.”

However, he said measurement on that basis only is not realistic, and is not in the interests of either side. He said the level of access to the premium retail market in the UK is not the same for both sides.

Irish produce, sold in cuts, has to service a range of differently priced markets, and the question of national preference may be at play also.

He called for a more accurate way of measuring than simply comparing the British R3 steer price with the equivalent Irish price.

He agreed with a Meat Industry Ireland suggestion that agreement on accurate price point comparators would benefit both sides.

“I would suggest that Bord Bia, MII, farmer representatives and the Department work together to agree on such comparators and that, if successful, the resulting price comparisons be included in the enhanced price information the Department is to put up on its web site.”