IFA turn their attention on CCPC
IFA President Eddie Downey said the intervention by the Commission in the beef dispute greatly angered farmers, and convinced them the Commission is only interested in protecting big business that are denying farmers a fair return from the market.
He said processors have not passed back stronger beef prices in the UK market, and farmers are also hit by anti-competitive fuel and fertiliser structures which increased their input costs more than 50% since 2005, destroying the viability of many family farmers.
Last week, farmers and beef processors at the beef roundtable meeting convened by Agriculture Minister Simon Coveney agreed on several measures, but Minister Coveney said discussion on prices had no place in the roundtable.
The day before, the CCPC had warned processors and farmers that negotiations could not move into competition-sensitive areas, such as fixing prices or anti-competitive collective action.
These areas were not among the headings of last week’s agreement, which included the following.
Processors will agree not to impose any price penalties based on weight on any animals up to December 31, 2015.
Farmers presenting heavier stock should provide adequate notice to processing plants.
In the meantime, Teagasc, ICBF and Bord Bia will examine the implications of weight specifications for profitable production of grass-fed beef, particularly from the suckler herd, having regard to market requirements and economic returns for farmers.
Processors and Bord Bia will engage with customers, and the Department of Agriculture will engage with authorities in third country markets, with a view to raising the age specification for premium beef from 30 to 36 months.
Teagasc, ICBF, Bord Bia, and farm organisations will look at the economics of producing beef sustainably to these age specifications.
Processors agreed there will be no dual base pricing for steers and heifers, by breed, age or weight or Quality Assurance status.
The QPS will be reviewed, with the assistance of Teagasc, with a view, in particular, to a more simple and transparent system, before mid-2015.
IFA President Eddie Downey said the QPS is fully reinstated with a single base price per factory for steers and separately for heifers.
Processors agreed to a targeted, cost-neutral price incentive for all steers and heifers from Quality Assured farms from January 1, 2015, based on a mechanism to be agreed by then.
The industry and Bord Bia will engage with customers to secure flexibility on the number of movements and length of residency, to remove any barriers to movement of pre-slaughter cattle through marts, and ensure the full payment of the QPS bonus to qualifying animals.
Processors will harmonise the system for counting the four farm residencies to determine eligibility for the QPS in-spec bonus.
The Department will make any necessary adjustments to its Animal Identification and Movement (AIM) System.
Meat Industry Ireland (MII) will work with Bord Bia, other agencies and farm organisations on a market index, with a view to developing a clear understanding of the market place.
MII will work with its members on a harmonised remittance docket for farmers, showing base price, bonuses and any factors contributing to the final price, in a clear and transparent manner, within three months.
Individual meat processors will pro-actively communicate price signals and market requirements to suppliers as early and as transparently as possible.
Eddie Downey, IFA, said it is agreed that the current statutory reporting system based on the R3 price is the accepted system of cattle price comparisons across the EU.
Individual processors will work closely with their supplier base to increase use of contracts, in particular for winter finishers, to provide greater security for producers of these animals, and assurance to processors on supply.
Eddie Downey confirmed it was agreed the processors would operate more contracts for winter finishers and bull beef producers.
The Department of Agriculture will continue to support and facilitate live exports by inspecting and approving vessels, and working with Northern Ireland authorities and UK retailers, to remove any barriers to the traditional trade for fattening and slaughter.
All participants in the roundtable endorsed development of beef producer organisations, to rebalance negotiating power and provide greater supply assurance to processors.
The Department will strengthen controls around trim in meat plants in accordance with EU Regulations.
