The effects of a formal cartel in the Irish beef industry were evident whether it existed or not, the EU Commissioner for Agriculture, Mr Franz Fischler said in Dublin yesterday. His comments came only days after the existence of a cartel was denied by the beef processing industry.
Mr Fischler said it had surprised him in recent years that after the EU began to pay a winter premium for cattle being slaughtered, the price started to go down within a week to exactly the same level as before the premium.
He said he found it regrettable that the situation in the beef sector should have deteriorated to such an extent as to bring farmers into direct confrontation with the industry.
"These two parties must recognise that they are very much mutually dependent on each party obtaining a fair profit margin," he said.
Mr Fischler, said he never found "an adequate explanation for the farm gate price differential between Irish cattle prices and those prevailing on continental Europe."
Dealing with one of the main themes of the Dublin Castle conference, the challenges in the future for agriculture, Mr Fischler said the reform of the CAP in Agenda 2000 should help to increase competitiveness and export opportunities.
He said economic development in Ireland had been a success of which the State could be proud.
"I fully appreciate that the farming industry may feel they have not been touched by the Celtic Tiger or indeed, may feel that they have been bitten by its effects on the cost of farm inputs and farm labour," he said.
No matter what farm policy comes out of Brussels there will always be farmers in Ireland, as in all EU countries, who will have difficulties obtaining a reasonable living from the land.
The growth of the economy should facilitate farmers or their spouses in obtaining off-farm employment to supplement income.