It is a time for cool heads and some mature reflection by both sides in the rancorous dispute between the beef factories and the Irish Farmers Association. Some modest progress was reported in the marathon round of weekend talks at the Department of Agriculture, but this morning there remains the real danger that this already very serious dispute could escalate still further. There must be some concern that some farmers will continue to blockade the beef plants in open defiance of a High Court sanction of £100,000 per day for each day the action continues. There is also the possibility of some kind of boycott by the IFA of the meat plants.
The situation in the State's most important indigenous industry could scarcely be more serious. Already, 3,500 workers have been laid off at more than 40 meat plants nation-wide; there is the distinct possibility of a scarcity of beef on the supermarket shelves within a fortnight and, most critically, competitor countries are poised to replace Irish beef in some key export markets. Ostensibly, the dispute concerns a £1.80 increase in veterinary charges by the factories which has now been withdrawn. But the kernel of the issue is the strong sense by every beef farmer in this State that they are not receiving a fair deal from the factories.
It may be that the farmers have right on their side. While the meat processors have enjoyed record levels of productivity and are posting bumper profits, farm incomes continue to languish. After suffering the fodder crisis two year ago and the debilitating effects of the BSE crisis, there was a reasonable assumption in farming circles that some of these profits would be passed on. But there has been little sign of this; farmers are continuing to receive about 84p per pound for their beef, well below the 90p per pound which Teagasc believes necessary to ensure their viability.
The fact that the processors now appear ready to offer an improved price for cattle tells its own story. There is the strong sense that the current dispute represents something of a last stand by farmers, many of whom claim they will be driven out of business unless prices improve. It has been a grassroots revolution by ordinary farmers whose patience is at breaking point. While the anger of these farmers is understandable, the decision to blockade the factories in defiance of the law was ill-advised and indefensible. The High Court had little alternative but to impose its hefty fine.
The IFA would do well to desist from any further infringement of the law. For the first occasion in a very considerable time, it appears to have the weight of public opinion on its side. It should not squander this by reckless illegal actions. For his part, the Minister for Agriculture has much to do; he must broker a resolution in a difficult and bitter dispute. But he must also work to restore trust between the farmers and the processors in a industry worth some £1 billion per year to this economy.