Some light at the end of the BSE tunnel?

By Eric Donald

14 August 2004: BSE has been the biggest issue in the beef industry for the last 16 years.

During that period it has impacted on farmers, both individually and collectively; on the meat industry; on the animal feed business; the regulators; the rendering operators; the knackery businesses; the taxpayer and, of course, on the beef consumer.

In most cases the impact has been negative, whether that's through lower cattle prices, market disruption, increased compliance costs or inadequate compensation.

But now it's hoped that there is some light at the end of the tunnel, at least in Ireland. The graphs show how the age profile of the animals with BSE is improving and the incidence of the disease in fallen and casualty animals has dropped dramatically.

Important role

But it's an ill wind that hasn't blown some good. A number of companies have played an important role in dealing with the disease in this country. One of them is Enfer Scientific who developed a rapid test for diagnosing the disease. Their accounts published in the Journal earlier this year showed that they made a pre-tax profit of €17 million in the year to the end of 2002.

Another company, Glynn Meats Ltd, the Limerick-based business, is the only plant licensed to slaughter herds where a BSE case has occurred. In doing this they have provided an important service to the industry.

Their balance sheet continues to strengthen, with shareholders' funds increasing to just under €9 million The increase in the number of BSE cases over the last five years (see table) has lifted throughput at the Crecora plant and it has been reflected in the balance sheet of the company. Shareholders' funds reached €8.98 million in the year to the end of August 2003. But if the indictors of a lower incidence of BSE in the future materialise, then the profits of the Limerick-based company may have peaked. Enfer will continue to prosper due to their international link-up with Abbots and the fact that many other countries are only beginning to face up to the issue.