Beef processing plants accused of taking advantage of farmers

Irish beef processing plants have been accused of slashing the prices they are paying farmers for their cattle by up to €40 per…

Irish beef processing plants have been accused of slashing the prices they are paying farmers for their cattle by up to €40 per animal in the past fortnight.

Despite a denial from the factories that they are deliberately cutting prices, the farm organisations are furious with the processors.

Mr Derek Deane, chairman of the Irish Farmers' Association's Livestock Committee, said factories had cut cattle prices by 11 cent per kg in the last two weeks.

"The only excuse from the factories for cutting prices is the increase in the weekly kill from 37,000 to 40,000 head. But the market reality is cattle prices in our largest export market in the UK remain rock solid and the EU beef market is very buoyant. Export licenses to Russia have increased significantly," he said.

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"The factories have taken raw advantage of the increase in numbers and cut prices unnecessarily. In reality, the factories have moved to pocket half of the farmer's €80 slaughter premium, which is most of the margin from summer grazing, with their price cuts over the last two weeks."

He said farmers were now getting a clear message to completely break the link between cattle numbers and premiums, and opt for full decoupling in the EU Fischler Reforms.