A SLAUGHTER premium to reduce the national cow herd and a £200 million loan scheme to encourage farmers to buy and hold store cattle over the coming winter are among the proposals in an ICMSA plan to tackle the BSE crisis.
The plan is intended to overcome the pessimism created by BSE, ICMSA president, Mr Frank Allen, said: "There is too much doom being preached about the BASE crisis. The ICMSA takes the view that Ireland's reputation as a world leader in the production of top quality beef will prevail, and that our beef industry can have a bright future in the medium to long term."
The ICMSA predicts that falling prices will eventually bring the reopening of EU and third country markets. It calls for the introduction of a more effective intervention system to ensure "more realistic" cattle prices and for a 25 per cent increase in export refunds as an incentive for exporters to find markets for all cattle.
A major increase in the 10 month beef premium to compensate for losses incurred by producers of lightweight cattle is also urged, with the suggestion that it be specially designed to cover losses suffered by suckler herd owners.
The £200m loan scheme for store cattle purchase should be funded by banks and the Exchequer at an interest rate of five per cent. The association also suggests the introduction of a slaughter premium for cows to encourage farmers to send surplus animals to the factory and so eliminate the "huge overcapacity" in the national herd.
The plan finally calls for a national programme by Teagasc to advise farmers on the best ways to remain in beef production.
"The consumer panic over BSE will abate in time," said Mr Allen. "And Ireland, with its disease free status and stringent disease control regulations, will be in an ideal position to exploit the renewed confidence among consumers which will inevitably emerge."
. The Minister for Agriculture, Mr Yates, has reminded farmers today is the deadline for applications under the BSE compensation scheme for producers who exported male animals live to countries outside the EU. It is also the closing date for the scheme for producers of heifers and young bulls, which covers slaughterings in meat factories and abbatoirs.
