The €100 drop in the prices farmers are receiving for their beef cattle from factories has created instability and must be stopped, according to the Irish Farmers Association.
The IFA had sought a meeting with the factory-owners saying they must halt the slide in prices which began three weeks ago and which has caused great instability in the market.
The factories, represented by the Meat Industry Ireland, yesterday said the price was set by market returns and their members were under severe price competition from South American beef imports into Europe, especially into Britain.
Cormac Healy of MII said: "We have a shared problem with the producers and we will continue to work together to try and find solutions to imports from South America, cuts in export refunds and in the future, the possibility of lower tariffs in WTO which will allow in more beef."
John Bryan, chairman of the IFA's national beef committee, said most of the factories were directly or indirectly involved with South American imports which were seriously damaging prices and incomes.
He said the Irish Food Board had reported British cattle prices last week at €2.82/kg for suitable grades and the prices quoted in Ireland's biggest export market were now 30 cents/kg or €100 per head over Irish prices.
Cattle prices had fallen from €2.94/kg down to €2.66/kg for R grades in a short period, a price reduction of 28c/kg or €95 per head on the average steer.
"Despite the market difficulties from an increase in South American imports and the uncertainty over the OTMs [ cattle over 30 months] in the UK, the factories must halt the price cuts," he said. "To protect our share of the UK market, a period of price stability is essential."
The Irish Cattle and Sheepowners Association said beef producers would have to reassess their situation following the recent price collapse. The chairman of its beef committee, Robin Smith, said factories had dropped prices to farmers by 14c-20c/kg in a 10-day period.