NI beef farmers losing out

By James Campbell

Beef farmers in Northern Ireland are losing out severely as markets strengthen across the European Union.

With finished cattle prices in the Republic of Ireland having closed the gap and beginning to rise above NI prices, beef processors here say that access to European mainland markets is the main reason for the upturn in fortunes for Southern Irish beef producers.

Lack of access, because of the beef export ban, is preventing NI processors obtaining significantly higher returns for parts of the carcase.

At the same time the scandal of good beef cows being taken for destruction through the Over Thirty Months Scheme (OTMS) in NI is costing over £200 per animal in some cases when compared to the real market for similar beef cows in the Republic of Ireland.

These two real market advantages provide a much more optimistic view of beef production South of the border than is currently possible in NI - before or after decoupling.

But the prospect of a reopening of beef exports at some stage and the ending of the OTMS whenever the UK authorities get around to it can give some grounds for optimism among beleaguered NI beef producers, if they can survive that long.

Scientists say that the risk is infinitesimal.

A UK government move to end the OTMS still awaits decisions by the Health Ministers of each of the devolved administrations. While they delay, farmers and the UK Treasury bear the cost.

The overall cost of the OTM scheme to the UK Treasury is believed to be over £240 million per year. The cost to farmers is growing as beef prices rise.

Meanwhile a test for BSE exists and the rest of the European Union accepts beef from cattle over 30 months of age which has tested negative for BSE.

Anecdotal evidence suggests that UK consumers would prefer tested beef to untested.

The situation is mad and it is maddening. Surely government heads must be knocked together.

The UK Farmers' Unions meeting in Newry last Friday agreed to press this issue again with their respective government departments.

On a separate tack this week, Sinn Fein agriculture spokesperson Gerry McHugh has outlined a proposal for the future of the red meat industry which would do away with the Livestock and Meat Commission for NI.

This would involve a new red meat promotional body completely owned and controlled by farmers (a co-operative) across the whole island of Ireland. The proposal would involve the development of an instantly recognisable brand.

There is no indication of the amount of money that this would need. The details have still to be worked out.

Sinn Fein would envisage substantial funding from farmers, processors and governments in the North and South of Ireland.