Beef farmers, processors agree action plan in overnight talks

Overnight discussions between beef farmers and the meat processing industry have ended positively with the Irish Farmers Association (IFA) and Minister for Agriculture Simon Coveney claiming good progress on a number of contentious issues.

The groups met yesterday evening in Celbridge, Co Kildare for a Beef Forum, chaired by former civil servant Michael Dowling, which lasted for some nine hours and ended with agreement on a list of key actions to address the concerns raised by beef farmers in recent months.

There were commitments that farmers would not face price penalties over weight specifications before the end of 2015; and on a quality payment system, which states there should be no dual base pricing based on breed, age or weight, the Department of Agriculture said in a statement issued early this morning.

It also said there had been a commitment from processors to provide a price incentive for all steers and heifers from quality assured farms from January 1st; that a market price transparency index would be developed based on different beef categories and that clearer documentation would be provided to farmers showing factors contributing to the price paid for animals.

However, there was no agreement on beef prices which have been the primary concern of farmers. The talks did not focus on price after a warning from the newly-formed Competition and Consumer Protection Commission (CCPC) against straying into price fixing during the negotiations.

The row had led to recent blockades of 14 of the country’s largest meat factories by farmers, who had maintained that only a substantial increase in the price for beef would end the dispute. The meat industry had accused farmers of using inaccurate price comparisons with other countries.

“I’m satisfied that this very comprehensive set of measures, agreed jointly between farmers and processors, represents the best possible outcome from the negotiations,” Mr Coveney said.

“I strongly believe that this is a response which the whole sector can get behind and support. It is time to move on from the difficult relationship which has characterised the sector over the last number of months and get back to focusing on a positive future.”

IFA president Eddie Downey said good progress had been made on some issues but that the association was “determined that prices must move on and that increased market returns are passed back to farmers”.

He said “the thousands of farmers who protested at the factories over the unacceptable €350 price gap with the UK have sent a very strong message that cattle prices must increase. Prices have risen by another €0.05/kg this week.”

Mr Downey said the behaviour of the meat factories this year on specifications and their dealings with farmers has seriously damaged trust. “The beef protest has sent a clear message to meat factory bosses that farmers must be treated fairly and with respect.”