The Irish beef-processing factories have been accused of pulling cattle prices down to uneconomic levels and profiteering on Irish cattle being sold into the UK.
The claim was made by Mr John Dillon, the president of the Irish Farmers' Association, who said that the drop in cattle prices over the past four weeks was unjustified.
"Cattle prices in our largest export market, the UK, are rising, and we are getting €150 per head less for the same quality of animal here," he said.
Mr Dillon said that good-quality cattle in the UK were making the equivalent of €2.86 per kg (102p per lb) in the UK, and for the normal "O" grade cattle British farmers were receiving the equivalent of €2.72 per kg (97p per lb).
Despite the fact that 60 per cent of Irish beef was being exported to this strong market, Irish farmers were receiving prices around €2.41 per kg (86p per lb), he said.
Mr Dillon, who warned the factories that farmers would not tolerate prices being forced down, said that the market could justify beef farmers receiving €2.52 per kg (90p per lb) for their animals.
"At prices below this level, the factories are eating into the farmers' premium payments. Premium payments are for farmers and not for factories," he said.
The Irish Meat Association, which represents Irish meat plants, has said that it can only pay prices which the markets can support.
Yesterday, Bord Bia, the Irish Food Board, reported that EU forecasts suggested that the European beef market was recovering in the aftermath of the foot-and-mouth and BSE scares. It said that it expected consumption to return to within 4 per cent of pre-BSE levels.
The board estimated that Irish cattle supplies for the remainder of 2002 would be slightly lower than in the corresponding period last year. An anticipated small rise in heifer throughput is not expected to be sufficient to offset a further decline in steer and young bull disposals, while cow supplies are likely to be similar to 2001 levels.