Italian importers of Irish beef have said they will not pay any of the increases conceded by Irish meat factories to farmers in the 14-day dispute which closed down the £1 billion industry.
This was the message delivered to the Minister for Agriculture, Mr Walsh, and his team during a whirlwind tour of northern Italy which concluded on Friday night. The Minister has embarked on a damage-limitation tour of key markets for Irish beef to reassure EU customers that there is unlikely to be a recurrence of the dispute which disrupted exports.
Italy was chosen as a priority because it takes £70 million worth of Irish beef annually and £20 million worth of live cattle. Exports there grew by 13 per cent last year and 50 per cent since 1996. There is potential for a huge growth in the trade.
During meetings with key importers in Milan, Verona and Bologna, buyers expressed satisfaction with Irish product but said they would not pick up the tab for the dispute which saw farmers win a base price of 90p per lb for cattle.
Mr Walsh was accompanied by the Irish Ambassador to Italy, Mr Joseph Small, and the chief executive of An Bord Bia, Mr Michael Duffy.
The Italians import 425,000 tonnes of beef, or 30 per cent of their annual consumption, which is among the highest in Europe per head of population. Last year 30,000 tonnes were imported from this State, and the target this year is for 33,000 tonnes.
One of the first stops was a meeting with senior officials at the COOP Italia head office near Bologna, which has a 13 per cent market share of the Italian grocery market and has been buying Irish beef for over 10 years, mainly from the Kepak group.
Mr Peter Ward, from Kepak, told the team that the dispute had left the co-op without Irish product for over a week and they had sourced beef from rivals. However, he was confident the relationship would continue despite the disruption.
During the day Mr Walsh, who said it would be difficult to quantify the damage to the industry by the dispute, also met the managements of Essenlunga stores, which has been buying Irish beef for 20 years, and the Conrad group.
This week Mr Walsh will be in France and the Netherlands to deliver the same message that there should be no more interruptions to supply.
Meanwhile, the 29 Irish Farmers' Association county executives meet today to select a president. It is expected Mr Tom Parlon, who resigned during the dispute, will be returned unopposed.