UK, Irish beef price gap widens

The gap between the beef prices which Irish and UK meat processors are paying to farmers has widened by 329% over a 10-year period, says IFA national livestock committee chairman Henry Burns.
UK, Irish beef price gap widens

Mr Burns has told meat sector leaders attending the Beef Forum, chaired in Dublin by Agriculture Minister Simon Coveney, that the current Irish/UK cattle price gap at €1.16/kg compares badly with the average of 27c/kg differential over the ten-year period 2004-2013.

He wants Mr Coveney to stand up for farmers and make it “abundantly clear to the factories that there can be no price cuts or dual pricing under the Quality Payment System for weight, age, breed or Quality Assurance”.

He said the QPS can’t work with weight limits.

“The current situation cannot continue and Minister Coveney has to sort this out with the factories,” said Mr Burns.

“In addition, the labeling issues preventing market access for Irish cattle to our nearest markets in Northern Ireland and Britain must be resolved.”

Mr Burns cited Teagasc figures which show that beef finishers off grass need a price in the order of €4.00/kg to cover costs, and finishers out of the shed need prices in the order of €4.50/kg.

The IFA also opposes the imposition of carcase weight limits, which it says will have a very negative impact on the Irish beef sector and especially the suckler cow herd and quality cattle.

Average carcase weights in Ireland are below those in the UK, Italy, France and Germany as per EU Commission data, the IFA adds.

Meanwhile, the ICSA has urged the monister to develop access to new markets for live exports to ensure increased beef productivity is viable.

ICSA president Patrick Kent will also be seeking answers as to the value of Bord Bia to Irish beef farmers.

Mr Kent said: “What value are farmers getting from the Bord Bia levy and the Quality Assurance scheme given the price differential between UK and Irish beef is at an all time high? Farmers have lost all confidence in the value for money from the Bord Bia levy.”

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