Yates unhappy with intervention limits

THE Minister for Agriculture yesterday expressed disappointment at the EU's refusal to accept the full Irish intervention tender of 8,222 tonnes.

But in a statement last night, Mr Yates said the acceptance of 6,480 tonnes - as part of the emergency measures to cope with the glut of cattle on the market because of the BSE scare - would take 27,000 cattle out of the system.

Mr Yates said he was satisfied the decision would give a further boost to the industry at a time when the level of activity in the beef and live trade continued to make a recovery.

He said that, as the tender included 2,090 tonnes of forequarter beef, it would make a major dent in the backlog which had built up since the BSE scare. He would be seeking a continuation of the special intervention scheme at next week's meeting of farm ministers.

The Minister also confirmed he would be pressing for an increase in export refunds at the EU Beef Management Committee later this week. In addition, he would be putting a case to the Agriculture Council for an increase in premiums to compensate for income losses incurred by producers.

An IBEC spokesman said its processor members were also disappointed that the full amount tendered for had not been accepted. He estimated there were between 50,000 and 60,000 animals available for slaughter, and this pointed up the necessity for a further round of intervention in a fortnight.

Mr John Smith, chief executive of the Irish Meat Processors Association, said the Commission had awarded a disproportionate share of the tender to the bull producing countries which were least affected by the BSE crisis in the UK.

"Approximately 77 per cent of the 50,000 tonnes of the intervention facility agreed for the month of April went to continental Europe. No proper account was taken of the impact of the UK crisis on the Irish beef industry.

"The intervention system as introduced has not solved the problem. The Minister will have to insist on additional market support to deal with the backlog of cattle on Irish farms," he said.

The president of the Irish Creamery Milk Suppliers' Association, Mr Frank Allen, said cattle farmers had now lost confidence in the Minister. Mr John Donnelly, the IFA president, described the cut in the levels tendered for as "an outrage".