Beef farmers can now band together and negotiate collectively with meat factories for better terms and prices for their cattle – without breaching competition law.
Minister for Agriculture Simon Coveney this Wednesday signed legislation giving legal recognition to Producer Organisations (POs) in the beef sector – a key recommendation of the Beef Forum.
At least 20 members
A minimum of 20 beef farmers will be required to form a PO. Minister Coveney said the views of stakeholders was that the minimum number should be at a level giving critical mass, while not being a barrier to establishment. A derogation is available to allow for POs where the numbers of members are lower in a specific production or geographic area.
The development “has the potential to be a real game-changer in rebalancing the supply chain”, Minister Coveney claimed. POs have the potential to give farmers the necessary strength to collaborate and achieve improved prices, he said.
EU legislation was enacted last year paving the way for POs for beef. The text signed by the Minister today gives effect to these rules at national level.
Negotiate on inputs
“It is also important to note that POs should not be seen merely as a price negotiating tool on outputs but that they can also collectively negotiate on the inputs they purchase,” the Minister said, adding: “I am also committed to seeking a technical adjustment to the Rural Development Plan in order to provide funding to assist POs to engage specialist facilitators to get groups off the ground which we will update on in due course. I would encourage all elements of the beef sector now to work together to avail of the opportunities provided by the establishment of POs which can help build a better, more sustainable beef sector in Ireland.”