Speaking on RTÉ’s Morning Ireland, Minister Coveney said he expected a response from the processing sector shortly, on how they intend to improve communication lines between them and farmers.
The Minister emphasised that the specs for producing beef have not been changed by processors, but specs are now being implemented much more rigorously as an over-supply had led to retailers becoming much more choosier.
Competition
Asked whether he thought there was sufficient competition in the beef processing sector, the Minister said if there is any evidence that there is a cartel is going on, he needs to hear about it and so do the Competition Authority.
Minister Coveney said in his experience “there is no love lost between the meat companies. They compete aggressively, predominantly outside of Ireland.”
He said he disagreed with the notion that the outlook is not good for the beef industry.
Minister Coveney said in a year-on-year comparison, beef prices are down 10%, not 25% as suggested by IFA Livestock chairman Henry Burns who was interviewed earlier in the programme. The Minister also said that last year (2013), beef prices were at an all time high, 16% higher than in 2011.
Low prices
He acknowledged that the going is tough for beef farmers at present because of low prices. He said the main reason for this is that beef production has been increased significantly this year, the number of animals being slaughtered is up 12.5% and so is the weight of these animals, resulting in the volume of beef being exported being up by around 15% on 2013.
The Minister said this increase is equivalent to the amount of beef we export to France and Germany combined.
Adding to all of this, the Minister pointed to the fact that because of economic recession, people are eating less red meat, leading to beef prices falling across Europe at a similar rate in Ireland.
Solutions
Asked whether he had solutions to falling beef prices the Minister said:
A new CAP programme worth €12.5bn over the next six years to farmers, two-thirds of which going to the beef sector, has been agreed.A beef forum involving all stakeholders has had two meetings and will meet again in the next few weeks.Bord Bia’s marketing fund for Irish beef has been increased to €3.5m.Producer groups are being created for farmers to negotiate prices with beef processors.More markets have being opened to Irish beef, including Japan, Gulf states, the US and he expected the Chinese market to open in the next 12 months.He added that he was working on the "nomad" issue with his northern counterpart Michelle O’Neill. He said Tesco had made it clear that they did not want to sell “mixed-label” beef but he intends to sit down with other retailers in the coming weeks.
Editorial: Coveney’s comments will fuel farmer anger.
Speaking on RTÉ’s Morning Ireland, Minister Coveney said he expected a response from the processing sector shortly, on how they intend to improve communication lines between them and farmers.
The Minister emphasised that the specs for producing beef have not been changed by processors, but specs are now being implemented much more rigorously as an over-supply had led to retailers becoming much more choosier.
Competition
Asked whether he thought there was sufficient competition in the beef processing sector, the Minister said if there is any evidence that there is a cartel is going on, he needs to hear about it and so do the Competition Authority.
Minister Coveney said in his experience “there is no love lost between the meat companies. They compete aggressively, predominantly outside of Ireland.”
He said he disagreed with the notion that the outlook is not good for the beef industry.
Minister Coveney said in a year-on-year comparison, beef prices are down 10%, not 25% as suggested by IFA Livestock chairman Henry Burns who was interviewed earlier in the programme. The Minister also said that last year (2013), beef prices were at an all time high, 16% higher than in 2011.
Low prices
He acknowledged that the going is tough for beef farmers at present because of low prices. He said the main reason for this is that beef production has been increased significantly this year, the number of animals being slaughtered is up 12.5% and so is the weight of these animals, resulting in the volume of beef being exported being up by around 15% on 2013.
The Minister said this increase is equivalent to the amount of beef we export to France and Germany combined.
Adding to all of this, the Minister pointed to the fact that because of economic recession, people are eating less red meat, leading to beef prices falling across Europe at a similar rate in Ireland.
Solutions
Asked whether he had solutions to falling beef prices the Minister said:
A new CAP programme worth €12.5bn over the next six years to farmers, two-thirds of which going to the beef sector, has been agreed.A beef forum involving all stakeholders has had two meetings and will meet again in the next few weeks.Bord Bia’s marketing fund for Irish beef has been increased to €3.5m.Producer groups are being created for farmers to negotiate prices with beef processors.More markets have being opened to Irish beef, including Japan, Gulf states, the US and he expected the Chinese market to open in the next 12 months.He added that he was working on the "nomad" issue with his northern counterpart Michelle O’Neill. He said Tesco had made it clear that they did not want to sell “mixed-label” beef but he intends to sit down with other retailers in the coming weeks.
Editorial: Coveney’s comments will fuel farmer anger.
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