The compulsory closed loop supply chain in the Glanbia-Kepak dairy calf-to-beef scheme is anti-competitive, members of the Oireachtas agriculture committee said on Tuesday.

They said that they would ask the competition authority to investigate whether this is the case.

The closed loop to us is fundamental and is the genesis for us to be able to pay over the market price

“If you have other companies like merchants going out of business and ultimately you are the last ones standing why would you be benevolent to farmers? You are it would seem in a dominant position,” Michelle Mulherin said.

However, Martin Ryan from Glanbia said: “The closed loop to us is fundamental and is the genesis for us to be able to pay over the market price. It forms a potential future opportunity to form a block chain for beef down the road and as we look to China that is definitely on their minds. I can assure you we will have a competitive price proposition.”

Mick O'Dowd from Kepak presenting the Glanbia-Kepak Twenty20 club to the Oireachtas Committee on Agriculture on Tuesday 14 May.

The year one target of 6,000 calves has been oversubscribed, Mick O’Dowd from Kepak said.

In year one, there will be 100 to 150 members. The average number of cattle per farmer is in the region of 50 to 55.