IRELAND-FARMERS TO MEAT THE MEAT PACKERS.
An emergency meeting between farmers and factory owners will take place tomorrow as the beef crisis escalates.
Officials from Meat Industry Ireland (MII) and the IFA are to meet in Dublin tomorrow for high-level talks on the issues affecting the beef trade.
The move comes after farmer protests outside AIBP, Kepak and Dawn plants last week that were slammed as "misguided and unhelpful" by MII.
Although the IFA has suspended protests until tomorrow’s meeting, it has not ruled out a return to the picket lines.
Quoted prices for cattle yesterday were maintained at 291-297c/kg for O grades and 302-308c/kg for R grades.
However, prices of up to 316c/kg were paid for bulls and heifers and 314c/kg for steers.
IFA president Padraig Walshe said the recent collapse in cattle prices had put the future of 10,000 specialist winter finishers in jeopardy and was costing some farmers up to €200/hd.
However, MII’s Cormac Healy said the disruption of beef processing would do nothing to solve the difficult market conditions in the cattle and beef trade.
Mr Healy said any suggestion of profiteering by the factories was "downright wrong" and was adamant "there is no fat in the system".
"The level of cattle price, which we acknowledge is hurting finishers, is a reflection of market conditions," he insisted.
Profitable winter finishers are essential to the Irish beef sector and its ability to supply year-round retail market outlets in the UK and across Europe, according to the IFA.
"Without winter finishers, Ireland will be driven back into a major seasonality problem," said Mr Walshe.
He maintained cattle prices in the UK and across EU markets had stayed strong recently.
"Bord Bia is reporting the UK price at the equivalent of €3.38/kg, which is well over €100/head on Irish prices.
"Prices across Europe are also strong with Bord Bia reporting R-grade bulls in Italy at €3.88/kg, bulls in France at €3.43/kg and €3.40/kg in Germany," he said.
However, Mr Healy said higher UK cattle prices are being cancelled out by weaker sterling.
"UK cattle prices are running about 15-16pc higher than last year, but sterling has been, on average, 18-20pc weaker this year," he said.
The situation worsened yesterday morning when the value of sterling against the euro moved to 92p/euro.
"Not only that, but the highest prices in the UK will always be paid for British beef because of their national preference," said Mr Healy.
As the economic recession takes hold, sales of higher priced or premium cuts such as fillets and striploins have plummeted in favour of cheaper cuts such as mince and diced beef.
MII has called on the Department of Agriculture to reconvene the Beef Forum immediately to see what measures could be introduced to alleviate the pressure on finishers and processors.