Meat plants asked to explain prices

The Irish Farmers' Association (IFA) has demanded a meeting with meat factory managements to explain the rapid collapse in the…

The Irish Farmers' Association (IFA) has demanded a meeting with meat factory managements to explain the rapid collapse in the prices farmers are being paid for their animals in recent weeks. Seán Mac Connell,Agriculture Correspondent, reports.

This week the factories were accused of "blackguarding" farmers who produce beef in the winter months, the most expensive time to do so.

John Bryan, chairman of the IFA livestock committee, said he believed factories were managing and manipulating cattle numbers and prices.

"The latest moves by factories this week to cut prices were a real kick in the teeth to winter finishers who have endured losses of in excess of €100 per head this winter.

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"At a time when prices were rising in our main market in the UK, it was a scandal that Irish factories were attempting to cut prices," said Mr Bryan.

He said it was an even bigger scandal that some factories were importing cattle and telling their farmer clients that they must cut the price.

He said the UK market was returning the equivalent of €3.24/kg (116p/lb) or €95 per head more than Irish prices.

He said Irish beef farmers guaranteed year-round beef supply at very high costs to enable factories service high-priced consumer markets.

"The response from the factories now is to take advantage of the situation for their own gain."

However, Meat Industry Ireland, which represents the factories and will meet the IFA on Monday, said the fall in cattle prices had been caused by difficult market conditions.

It said there had been a dramatic fall-off in Irish exports to Russia, which only took 1,200 tonnes this spring compared with 8,000 tonnes last year.

It also said there had been higher cow slaughterings in the UK, where the increase was 120 per cent. There had also been a weakening in the continental trade.

Meanwhile, lamb prices have also fallen dramatically in recent weeks, and by as much as 50c/kg over the last week.

Producers have called on the Irish Food Board to bring forward its annual lamb promotion to next week.