Euro 6 million hit on beef : farmers threaten action

By Paul Mooney

Farmer unrest at the continued cutting of beef prices by the meat plants is growing. Over the past month the factories have cut beef prices by almost Euro 70 per animal.

Dairygold chief executive Jerry Henchy on his way into the first meeting of the new general committee at Buttevant is pictured passing Munster pig producers protesting over the proposed closure of the pig slaughtering facilities in Galtee.

And in a further Euro 6 million hit, from next week farmers will have to pay the Euro 22 BSE testing charge on all cattle aged over 30 months. This arises because the Department of Agriculture is ending the Euro 22 testing subsidy it has been paying on older cows.

Cattle prices are falling here despite continued strength in our main export market in the UK. Cattle prices in the UK and Northern Ireland are buoyant.

With farmers starting to demand action to halt the downward spiral in prices, IFA president John Dillon yesterday (Wednesday) warned the factories that they would do long term damage to their own business if they cut price any further.

The price cuts are a clear signal to farmers that they should cut back on production as they will be able to freely do under decoupling which starts in January.

Farmers are now starting to plan ahead for 2005, he warned the factories. Under decoupling farmers will only produce beef at worthwhile prices that are over the cost of production," he said.

While the plants have cut price to farmers they continue to enjoy the same strong returns from UK buyers, he claimed.

While the Department is ceasing all support of BSE testing the Euro 8 per animal EU subsidy continues. Mr Dillon also called for a resumption of the live trade to the Lebanon.

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