This article is from page 51 of the 2007-06-05 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 51 JPG
THE prices that farmers are receiv- ing for their produce continues to dominate across every sector of the industry this week, with a growing sense of dissatisfaction beginning to eaKO A
Last week, the ICMSA met with senior representatives of Meat In- dustry Ireland and stated clearly to them that the prices being returned to farmers at the present time are unsustainable and threaten the very future of winter finishing in Ireland.
“With significantly increased feed bills, nitrate directive investments and the losses already suffered this year, many farmers who tradition-
ally finished cattle during the winter period will change their system of production,” said Martin McMahon, Clare farmer and chairperson of IC- MSA’s Beef and Cattle Committee.
“These farmers have guaranteed meat plants a year-round supply of beef which has been critical in build- ing up high-value markets. The un- fortunate reality is that these high value markets are, at present, not leading to acceptable prices for win- ter finishers and these farmers are now being effectively penalised for providing the raw material for these markets.”
The ICMSA delegation told Meat Industry Ireland that unless beef prices increase immediately, farmers
will either scale back production or move to a system of finishing ani- mals off grass.
“The hard choice is for the meat plants, to either raise beef prices 1m- mediately or irreparably damage the long-term future of their own busi- ness. Farmers cannot be blamed for this; they cannot continue to supply beef at a loss,’ said McMahon.
Meanwhile, the IFA National Dairy Committee Chairman, Rich- ard Kennedy, has said EU markets for SMP and butter were continuing to be firm, pulling away ahead of even the historically high prices of €2,/00/t for butter and €3,100/t for SMP paid in May by the Irish Dairy Board.
However, only a fraction of this, he says, has been passed back to farm- ae
“EU market quotes have contin- ued to rise for both SMP and butter. I have no doubt that the Irish Dairy Board will reflect this further in- crease, worth a further 4.5c/l over the coming weeks. When they do, this will increase returns to co-ops from the current 38.8c/I to over 43c/l,” he said. “EU market returns have now increased by a total of 15.1c/l (68.7c/ gallon) since last July, of which the IDB has passed on 12.7c/l (58c/gal- lon) so far. Farmers have only been paid, at best, 2.6c/l (12c/gallon) — just about 1/6th of the actual market improvement,” he added.