THE Minister for Agriculture was yesterday battling on two fronts for compensation for beef farmers, particularly winter finishers, who have been hit by the worst price falls in 20 years.
Mr Yates first met the Minister for Finance, Mr Quinn, to appeal for a one off compensation for the fall in the value of the green pound. He then flew here to meet EU Farm Commissioner Mr Franz Fischler over repeated cuts in the value of export refunds.
Mr Yates said he was deeply disappointed by the insensitivity of the Commission, whose attitude to the problem was technical rather than political. He could not pre-empt any decision by the Government on green pound compensation, but said that a strong case could be made for beef farmers. Full compensation to the farm sector would cost some £72 million, but for the beef sector alone about £30 million.
If compensation was forthcoming the Government has the option under EU rules to match the Commission payment of half the losses suffered in revaluation it would be targeted, the Minister said, specifically at farmers who have suffered most from the price fall, those who sold the cattle after April 1st when the market fell six per cent to its lowest level in 20 years.
Beef is now selling at 78-80p a lb, while Teagasc estimates farmers need 90-95p to break even) The fall is due to the collapse in beef consumption in Europe of about half a million tonnes following the BSE scare and the consequential soaring demand for export subsidies. Measures taken by the EU to cut production, notably the "Herod premium", will take until next year to begin to rebalance the market.
Because the GATT agreement limits subsidised exports, the Commission had to find a way of rationing the licenses to export it has done did so by cutting the value of subsidies in the hope of depressing demand. Last week, ahead of the latest issue of licences, there were 45,000 licences sought 17,000 were available.
The president of the IFA, Mr John Donnelly, said the crisis facing winter finishers was now so severe that Mr Yates should seek the renegotiation of the GATT export licence arrangements. "Irish farmers have a right to a fairer deal on export licences from the EU to sell our beef on the world market.
