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IFA refute claims of price slashing

This article is from page 61 of the 2009-10-06 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 61 JPG

IRISH meat factories have been ac- cused of slashing beef prices in the last week in order to maintain a large price gap over the United Kingdom beef market.

IFA President Padraig Walshe last week accused Irish meat factories of making Irish farmers suffer in order to allow them to maintain a strangle- hold over UK producers.

Bord Bia figures show the meat factories are continuing to operate a price gap of €150 per head with cat- tle prices in our major export market in the UK.

According to IFA president Padraig Walshe, the massive price gap was more than adequate to absorb the sterling change and the latest drop in prices was avoidable.

“The facts are that cattle prices are down over 50c per kg or €175 per head on this time last year. The factories latest grab for more of the price means farmers selling cattle are losing money and _ subsidising production out of their Single Farm Payment,’ he said.

The IFA president said by forcing prices down to the current unviable level, the factories and supermarkets are taking money from the Single

Farm Payment.

“Producing finished cattle for the factories to sell at loss-making prices is unsustainable. The livestock sec- tor must pursue every possible live export market to obtain viable out- lets capable of returning profitable jo eon

Meanwhile, the [FA National Live- stock Chairman Michael Doran said the factories tactics on cattle prices underline the importance of a strong live export trade. He said up to 300,000 head of cattle will be exported live this year, leaving sup- plies to the factories much tighter next year.

“There is a very strong market in the UK for Irish beef, where they have a major market deficit and tight- ening domestic supplies. Despite the change in sterling, UK cattle prices are the equivalent of €3.26 per kg including VAT,” he said.

“Across Continental Europe, beef prices are also strong with Bord Bia reporting Italian prices at the equiva- lent of €3.80 per kg, French prices at €3.17 per kg, German prices at €3.18/kg and Spanish prices at €3.35 per kg.

“In addition Brazilian beef exports into the European Union remain se- verely restricted.”

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