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Farm organisations quizzed the five major retailers in Ireland on their beef specifications at the latest meeting of the Beef Market Taskforce.
While the four in-spec bonus criteria of quality assurance (QA), 30-month age limit, four-movement rule and 70-day residency requirement are rigorously applied by factories, retailers are less stringent in their application.
The majority of the retailers present did not require beef from under 30-month cattle. However, all five stressed the importance of beef coming from a quality-assured farm.
It is imperative that mutually beneficial relationships across the supply chain are maintained and developed
Grant Thornton has been commissioned to conduct an independent review into market and customer requirements of the in-spec criteria. The retailers agreed to return in March when the study is complete to provide a further update.
However, retailers pointed out that Irish retail sales account for just 6% of all beef produced in Ireland.
Engagement
Minister for Agriculture Michael Creed said: "I am pleased to see Irish retailers engaging constructively with the work of the taskforce, as it is imperative that mutually beneficial relationships across the supply chain are maintained and developed to secure the future of Irish beef.”
The Teagasc review of the grid showed there was little evidence for a change in the differentials that were introduced over 10 years ago. A number of farmer representatives expressed an interest in moving to a simpler payment system.
Department of Agriculture carcase classification experts poured cold water on the introduction of an appeals process for animals graded mechanically. Such a process is available for manually graded carcases but under Irish legislation a machine's grade is final.
It was suggested that farmers could be compensated without the grade being changed while others called for closer monitoring of the system to flag problems more rapidly.
Price
With beef price running around €3.60/kg, many farmers were hoping for movement. IFA president Joe Healy said beef prices had to be increased and could not continue at loss-making levels.
"Retailers and factories who work together must pass back higher market returns with a significant and immediate price rise to farmers," Healy said.
He added that retailers were less onerous in their use of specifications than the factories.
ICMSA livestock chair Des Morrison said the green shoots that had been talked about at the last taskforce “needed to start growing soon”.
The cooperation of the retailers with a planned price composition study was welcomed by ICSA president Edmond Phelan, who said current prices fell short of what beef producers required.
Phelan said retailers gave no coherent indication that the 30-month rule was as important a requirement in the Irish market as processors would have farmers believe.
INHFA president Colm O’Donnell again stressed the need for the €40m announced before the budget to be ringfenced for suckler farmers.
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