Ireland-Farmers protest at meat plants.

BEEF producers in Britain are enjoying prices about 20 per cent above those of a year ago.

However, their counterparts in the Republic of Ireland have their backs to the wall and there is a real possibility that production will decline.

This week the Irish Farmers’ Association mounted a series of protests at the premises of the major players in the beef industry.

Padraig Walshe, president of the IFA, said there was deep anger among producers at the way in which the "factories" – the Irish term for abattoirs – had cut prices and used negative propaganda to destroy the confidence of finishers and erode their incomes. Walshe says that at current prices finishers are losing 200 (£185) on every animal and that many will be forced out of business.

In recent weeks returns on prime cattle have fallen by about 80 per head and there is now a gap of 126 per animal between Irish and British values.

Michael Doran, chairman of the IFA livestock committee, said: "Price cuts will wipe out the profitability of winter finishers and will drive the beef sector into a major seasonality problem, and completely undermine our ability to supply year-round markets in the UK and across Europe. The factories cannot justify cutting prices in Ireland when values in all our main markets are increasing."

Part of the problem in Ireland is that very few cattle are sold through livestock markets and that the power lies with the big players. In addition, the Irish banks are under pressure and farmers are finding it difficult to source funding. The security formerly linked to high land prices is no longer there, after the collapse in the property market.