Survey: huge variations in meat factory charges

By Paul Mooney

Full stoppages on bullocks and heifers slaughtered at factories and abattoirs vary from €33.49 per head up to a high of €43.29 per head, according to a new survey.

The IFA survey was conducted over the past ten days, after the new charge for BSE testing of older animals was brought in by most factories. It also takes into account the higher ERAD levies - doubled from 1 January, other statutory charges, and factory-imposed charges for insurance and clipping. The above figures take into account all these charges.

The survey was carried out before any possible new deductions for meat and bone meal disposal which could start next week if the Department of Agriculture - as threatened - ends its subsidies from Saturday, 1 March.

The variation between different factories occurred largely on insurance and clipping of hides. The statutory meat inspection fee, ERAD levy and Bord Bia levy, all imposed by the Department of Agriculture, were the same at each plant (see chart). The charge for BSE testing of older cattle is €20.29 at most plants and varies only by a few cent elsewhere. The survey was conducted using farmers' factory dockets.

The lowest full deductions were found at Slaney Meats and Kepak Athleague at €33.49 and €33.92 respectively, including BSE test. Slaney's general charge for insurance was €1.50 per head for steers and heifers. No farmers were charged for clipping and that is the general situation there. However, Slaney does in cases send home cattle that score five on hide dirt.

Athleague's general charge for insurance was €1.90. It, too, generally does not charge for clipping. It clips on the line following slaughter, where necessary.

The next lowest deductions were at the two Dawn plants at Ballyhaunis and Ballaghadereen, each at €36.17 per animal. Both charged €1.90 for insurance, €2.25 for clipping where required and €20.29 for Enfer test where required.

The next lowest included Kepak Watergrasshill, Ashbourne Meats Roscrea and Jennings in Ballinrobe. The Kepak plant charged €1.27 for insurance. For clipping it charged from €3.50 to €10 depending on hide score.

Roscrea charged €1.90 for insurance and €4 for clipping where required and €20.29 for BSE testing where required. Jennings charged €2.99 for insurance and the same for clipping. It appears that this flat clipping charge is deducted for all cattle slaughtered, whether they're clean or dirty.

Biggest deductions at Grannagh

The highest deductions were found at the Dawn Grannagh plant. Insurance was €1.27 but clipping €10 in all cases, where carried out. It deducted €20.29 for BSE testing where required.

Next highest was Donegal Meats. It deducted an insurance charge of €1.90 and charged €6.35 for clipping and €20.29 for BSE testing. It generally clips fives outside and fours on the line but charges the same.

AIBP Bandon was next, marginally higher than Kepak Clonee, Liffey Meats and Galtee Charleville.

Insurance varies

The above figures for insurance charge were those applying to most steers and heifers.

However, most factories tend to deduct higher insurance for higher risk animals. Insurance can routinely be €5 for cows and higher for reactors.

‘Charges now exceed farmers' net margin from winter finishing'

The charges being deducted from farmer payments now exceed farmers' net margin from winter finishing, IFA livestock chairman Derek Deane said this week. On top of these charges, the Government is proposing to impose a further €16/head cost for meat and bone meal disposal from next week.

He warned both the Minister for Agriculture Joe Walsh and the meat factories that unless the levies and charges are both brought back down to single digit figures there will be a very adverse response from producers in the next number of days.

Some factories are using the levies as an income generating machine, charging up to €6/head for on line clipping, he said. "At this rate, if half of the cattle going through a plant were clipped, it would generate an income of up to €5,000 per week. This type of clipping facility can be operated by one person costing approximately €500 per week, leaving an income of €4,500 for the factory.''

The insurance scheme operated by the factories as a "slush fund" with some factories charging up to €3/head while others are charging as low as €1.27/head, he said. "A factory slaughtering 100,000 cattle could be generating up to €300,000, which would be the equivalent of paying out on 380 cattle. In practice this is not happening, as there always seems to be an excuse not to pay.''

Farmers must demand that these excessive charges are not deducted from their pay sheets, he urged.

The meat inspection system and ERAD programmes were inefficient and had to be radically over hauled, he said.