FARMERS are being paid 20 per cent less for their beef since the BSE crisis broke in March, but the price consumers pay has fallen by only 4 per cent, the Minister for Agriculture, Mr Yates, admitted yesterday.
Mr Yates said the difference between consumer and producer prices had been officially confirmed to him within the past few days by the Central Statistics Office.
I have written to the Director of Consumer Affairs, Mr Fagan, asking him to see what action is necessary to ensure that the competitive position of beef is reflected on supermarket shelves," he said.
He was speaking at the launch of the Irish Food Board's £1/2 million beef promotion campaign, which has been organised to offset the fall in consumption here because of the BSE crisis.
He said we seemed to have lower prices for producers, but not for consumers. That was of concern to him.
He believed beef would be more competitively priced in the future and it was important that this was passed on to consumers so consumption could recover.
He predicted that there would only be a marginal increase in the price being paid to farmers, and did not expect a return to the prices being paid to producers before the crisis broke on March 20th.
He expected that prices being paid to farmers for their beef - currently 84p a lb - would be about the same next spring.
Asked why he could not force butchers and other retail outlets to cut their prices, the Minister said we did not have a system of price control in this country.
It is left to market forces and other commercial factors.
He would act on any recommendation from the Director of Consumer Affairs but as yet had not received clear recommendations.
Mr Phillip Lynch, chairman of the food board, said the full restoration of consumer confidence in beef could only be considered in the context of a better-informed consumer.
The board, he said, would embark on its largest ever campaign to rebuild consumer confidence from Monday, highlighting that Irish beef is a quality product.
Mr Michael Duffy, the chief executive of the food board, said beef consumption in Ireland had recovered to 85 per cent of pre March levels.
However, research had shown the need for more information for the consumer.
From Monday, the board would be sending out the answers to questions which were posed following detailed market research into the exact nature of consumers' concerns about beef.
In the short term, consumers need to be reminded of the wonderful taste of beef and the fact it has excellent nutritional qualities. In the long term, however, there is a need to reassure consumers on a number of issues, including traceability and quality assurance.
Mr Duffy said that consumer confidence could only be restored in the long term if the public was comfortable about where its beef came from and the processes involved in bringing it to the table.
He said the objectives of the campaign were to restore consumer confidence in beef and to promote it as a delicious, nutritious component of a balanced diet.
From Monday, there would be a promotional campaign in the national media and a consumer phone-in competition on the 21 local radio stations. Leaflets would be distributed to 200,000 Dublin households.
The campaign would also feature the serving of more than 4,000 steaks at the World Ploughing Championships in Carlow.
At retail level, there would be seminars and in-store tastings in 80 stores. There also would be a competition in schools to design a poster promoting beef. The campaign would target the health professionals with information on beef.
Mr Yates said that the campaign would also have an international impact as Bord Bia could demonstrate that Irish people had confidence in the product it sells to others.