Scarcity of meat products benefits Irish processors

Irish meat processors have been benefiting from the scarcity of meat products on British supermarket shelves because of the outbreaks…

Irish meat processors have been benefiting from the scarcity of meat products on British supermarket shelves because of the outbreaks of foot-and-mouth disease there.

Farmers here have been benefiting financially from the shortage of meat on these islands because of the suspension of slaughtering in Britain. But secondary meat processors in Ireland and Britain have had to pay more for their raw materials as a result.

Meanwhile, British farmers have been complaining that they are getting lower prices for their cattle, sheep and pigs, because some British processors, notably Midland Meat Packers, one of the big five processors, initially decided to deduct the cost of operating the slaughtering permit system.

Irish companies operating in Britain - Dawn Meats, AIBP and Kepak - did not adopt this policy and agreed to pay the same price when the factories reopened this week as they did when they closed on Friday week last.

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Industry sources say that an increased volume of all meats has been going from Ireland to Britain in the past two weeks, and this will continue for another two weeks at least. British slaughterings are running at about one-third of capacity this week, will reach two-thirds next week and should return to normal after that.

The Dutch and Danes have increased their beef and pig slaughterings, which has taken the heat out of the market to some degree. But Britain still needs to import 25 per cent of its 900,000 tonnes of beef consumption, so market opportunities still exist there.

Pigmeat factories in Britain reopened this week, offering the same prices as when they closed. Irish exporters of pigmeat - who would normally be getting 10 per cent less than British processors - were getting a slightly enhanced price, but that probably will decrease as normal supplies come on stream. Retail prices also increased because of a scarcity in supplies in the last quarter of last year.